“Overall the defense portfolio is well positioned for the future and we still expect the business to return to historical performance levels as we continue to stabilize production, execute on development programs, and transition to new contracts with tighter underwriting standards.”

In context

“e continue to work to stabilize and mature these programs. This quarter's results reflected stabilizing operational performance, and we remain focused on retiring risk each quarter and ultimately delivering these mission critical capabilities to our customers. During the quarter the MQ-25 program successfully transported the first engineering development model aircraft to the new production facility in Illinois where it began final assembly. The last production step before ground and flight testing begin later this year. On the T-7A we achieved the first two EMD performance milestones outlined in the MOA that was finalized with the U.S. Air Force in January. This continues to be an important example of how we are working with our customers to find better overall outcomes for both parties. Overall the defense portfolio is well positioned for the future and we still expect the business to return to historical performance levels as we continue to stabilize production, execute on development programs, and transition to new contracts with tighter underwriting standards. Moving on to the next page and BGS. BGS continued to perform well delivering very strong financial results in the quarter. The business received $5 billion in orders and the backlog ended at $22 billion. Revenue was $5.1 billion stable year-over-year. Operating margin was 18.6% in the quarter up 40 basis points compared to last year on favorable performance and mix with both our commercial and government businesses delivering double-digit margins. In the quarter BGS delivered the 100 767-300 Boeing converted freighter to SF Airlines and received a modification contract from the U.S. Air Force to integrate electronic warfare systems for the F-15 Eagle. It remains a terrific long-term franchise focused on profitable capital efficient service offerings and continues to execute very well. Tur”