“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.”

In context

“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 with Morgan Stanley. Please go ahead. Kristine Liwag: Good morning, everyone. Maybe switching gears to a different topic. With tighter cost of capital, we've seen valuations come down in high-growth investments. Is this a better time for corporate VC to enter into deals on attractive terms? I mean just looking at the limitations on M&As from the FTC stance that we saw with Aerojet Rocketdyne, I mean how should we think about the importance of Lockheed Martin Ventures to access these new technologies? And could we see ventures double from here? Jim Taiclet: Kristine, this is Jim. One of the first things I did when I came from the Board to active management was to double, as you said, to double the venture fund, right? So, it was $200 million, now”