“On BDS profitability, as I mentioned, maybe just look at 2026. As I mentioned just first in the prepared remarks, 3.5% in the second quarter. I would expect the balance of the year to be pretty much in the same zone there. So on a full year basis, including the VC-25B charge, we're in the range of about 2.5% for the year.”

In context

“Jay Malave (Executive Vice President and Chief Financial Officer): Yes, Sheila. On BDS profitability, as I mentioned, maybe just look at 2026. As I mentioned just first in the prepared remarks, 3.5% in the second quarter. I would expect the balance of the year to be pretty much in the same zone there. So on a full year basis, including the VC-25B charge, we're in the range of about 2.5% for the year. We would expect that again, sequentially each year from here on out to continue to improve. I don't have a specific forecast for you. Again, that's something that we'll probably lay out a little bit more as we get into a formal planning season. But we would — I would expect there to be improvement — margin expansion each year sequentially throughout the rest of the decade as we approach and reach this high single-digit number. And again, the road map, again, is very similar to what we've said. It's delivering out on some of these contracts and kind of taking those headwinds away. It's also going into phases, different phases of existing programs whereby the pricing is better on those contracts as well. And then just in the backlog, we've got just better priced backlog as well, similar to BCA. So taking all those things together with the benefit of the execution that we're seeing at BDS are the building blocks to this improved margin profile. And as I mentioned and I have mentioned before, pretty confident in our ability to be able to deliver that.”