“We continue to expect initial savings from phase one of our manufacturing optimization program in the latter part of this year, with approximately $1.5 billion in savings from phase one that's expected by the end of 2027.”

In context

“development. In addition, the modernization of our Halion investment has contributed to our improved cash position. As a reminder, in January, we monetized approximately $3 billion of our Halyon shares, and in March, we monetized the last tranche of our Halyon shares, receiving approximately $3.3 billion in net cash proceeds. With this sale, we have now fully exited our ownership in Halyon. Overall, our objective remains to delever our balance sheet over time, which will further support our return to a more balanced allocation of capital between reinvestment and direct return to our shareholders. We continue to be disciplined on our operational expense management, progressing multiple improvement programs as we remain focused on driving long-term margin improvement over the coming years. We continue to expect initial savings from phase one of our manufacturing optimization program in the latter part of this year, with approximately $1.5 billion in savings from phase one that's expected by the end of 2027. In addition, we are progressing the evaluation of other strategies to improve our network structure and product portfolio, respectively. As part of our goal to return to pre-pandemic operating margins, we remain on track to deliver on our goal of at least $4.5 billion in cumulative net cost savings from our ongoing cost realignment program by the end of this year. And today, we've announced our expectation that this program will deliver an additional $1.2 billion in net savings, primarily in SIA and in part by leveraging digital tools, including automation and AI, as well as simplification of our business processes. The savings are expected to be fully realized by the end of 2027. Furthermore, we have identified additional opportunities to drive improvements in productivity and operationa”