“We've got some new program awards, particularly in classified, that are going to put margin pressure not just next year but a few years beyond that as well.”

In context

“hey do fluctuate and a little volatile. So we'll update that accordingly as we go and think about next year and what that means for 2025, Seth. Operator: And next question is from Peter Arment with Baird. Please go ahead. Peter Arment: Yes, thanks. Good morning, Jim, Jay. Jay, I wanted to just focus on Missiles and Fire Control. Just kind of obviously a little transition in growth this year, but profitability going to be down also looks like close to 90 basis points. Just maybe walk us through a little bit kind of some of the puts and takes there and just thoughts about kind of margin recovery as we think about the next couple of years where we've got all this growth inflected? Thanks. Jay Malave: Yes. No, good question. This is something we talked a little bit on the third quarter call. We've got some new program awards, particularly in classified, that are going to put margin pressure not just next year but a few years beyond that as well. And it's really just on the early phase of these programs as we head into production. It's just low margin, and it will take time to have those restore to margins that we've seen in the past. What I will say is that we do have the benefit of some offsetting mix with the upside that we're seeing in this business. I mentioned before a potential $6 billion over the next five years. Those will come with more solid margins will help mitigate the reduction that we're seeing on these new programs. But there will be some pressure there that we have to deal with. And look, the MFC team has a good track record of driving out cost, driving margins. I'm confident they'll be able to do that in the future as well, but it will take a few years to get there. Operator: Next, we'll go to Kristine Liwag wit”