“At Pratt, you saw good margins coming out of the fourth quarter. And again, we think Pratt has the potential to grow its margins to where we thought they'd be today.”

In context

“ble in the business in the long term. If you take them one by one, Collins has shown significant margin improvement already. We have another 150 basis points of margin improvement baked into the '25 outlook. And I think with the volume of the aftermarket, the cost reduction focus and the actions we're taking in the supply chain, they will get there too. It's going to take a little while. Obviously, there's been a number of headwinds that we could not have contemplated back in 2021. I recall when we put these targets out there, we were among the first company talking in the COVID environment publicly. So it was really unique times. We've also lost over $0.75 billion of sales due to the Russia-Ukraine conflict. So there's been a lot of changes, but I think we've done a lot to overcome them. At Pratt, you saw good margins coming out of the fourth quarter. And again, we think Pratt has the potential to grow its margins to where we thought they'd be today. They're not too far off. The top line has grown faster, and obviously, that's been driven by aftermarket and the GTF, which comes with a lighter margin, but still positive, as I just talked about. And then, of course, Raytheon see no reason why that can't get to margins that are north of 12%, 12.5% as well. So the productivity there at Raytheon continues to improve. We saw good improvement in '24. We're expecting another $100 million in 2025 year-over-year. So, I think all things are on track. But there's been a number of changes, but I think we're doing what we can and controlling what we can control. Chris Calio: Yeah. I mean, David, some puts and takes for sure. But I would say that we feel even stronger about the underlying fundamentals of each of the businesses. Inflation was a huge”