“Right now, we’re squarely focused on meaningful operating performance improvement, including deliveries, revenue, margins and cash flow, all of which will improve as we progress through 2023.”

In context

“n, both within our factories and the supply chain as we steadily increase production. Relative to the first half of 2023, we continue to expect operating and financial performance to improve in the second half. On the third quarter specifically, we expect BCA margins to improve sequentially but remain negative, and we’re not anticipating much in terms of BDS profitability. The 2Q effective tax rate of 63% included cumulative adjustments related to the projected valuation allowance. These adjustments will continue to weigh on the tax rate for the remainder of the year. And given the strong results in 2Q cash flow, 3Q will be lower sequentially, still positive and likely in the hundreds of millions of dollars. All things considered, we feel good about where we’re at on the road to recovery. Right now, we’re squarely focused on meaningful operating performance improvement, including deliveries, revenue, margins and cash flow, all of which will improve as we progress through 2023. And while the challenges remain, we’re headed in the right direction. Ultimately, we expect our operational and financial performance to continue to accelerate, aligned with the plan we laid out at our IR Day last November. And we are confident in $10 billion of free cash flow in 2025, 2026. With that, I’ll turn it over to Dave with some final remarks. Dave Calhoun: Again, a solid quarter. We are wrestling our way through the BDS contract, fixed price contract exposures that we have. We’re confident we will see them through. And as I’ve said before, most importantly, the products that we deliver, warfighter will perform as or better than expected. So with that, I’ll open it up to questions. Operator: [Operator Instructions] And our first question will come from Sheila Kahyaoglu from Jeffe”