“Finally, we expect powder metal compensation impacts to be between $1.1 billion and $1.3 billion, which is up around $100 million year-over-year at the midpoint.”

In context

“ing capital, we expect a year-over-year improvement of approximately $1.3 billion, with the majority coming from inventory and contract assets as we deliver commercial OE product, achieve defense delivery milestones and improve our supplier inputs and material throughput. This also includes CapEx where we expect to invest between $2.5 billion and $2.7 billion during the year as we continue to expand capacity and accelerate automation efforts to support our long-term organic growth. Next, the onetime legal and contract matters that we paid last year will not repeat in 2025, resulting in a tailwind of approximately $1.5 billion. We also see a headwind of approximately $900 million, primarily driven by the absence of an R&D tax-related benefit in the prior year and higher cash taxes in 2025. Finally, we expect powder metal compensation impacts to be between $1.1 billion and $1.3 billion, which is up around $100 million year-over-year at the midpoint. All in, we expect free cash flow to be between $7 billion to $7.5 billion in 2025. With that, let's turn to Slide 10, and I'll provide some details for the segment outlooks. Starting with Collins. We expect full year sales to be up low single-digits on an adjusted basis and up mid-single-digits organically. As I already noted, this outlook assumes the completion of the sale of the actuation business around midyear. Adjusting for this divestiture, we anticipate commercial aftermarket to be up high single-digits to low double digits driven by growth in passenger air travel and mods and upgrades volume. Commercial OE sales are expected to be up mid-single-digits as increased volume on multiple platforms is partially offset by impacts from the expected timing of our customers' production ramp”