Marc Parent: I think it’s for sure that we’re going to write it above pre-pandemic levels, no doubt about that. And again, as I was saying a while ago, when you think about the cost savings that we’ve taken out of the business, just by itself, even at pre-pandemic levels, would mean a higher margin, which you’re already seeing in the results. A couple on to that. There’s — business aviation is very, very strong. And that’s a very good part of our business from a profit standpoint. You saw the outsourcings that we’re making. There’s more coming down that path. So, I’m quite comfortable with it, as well as a very strong demand environment that we’re seeing across the whole business. So, we don’t have a target today for margins, except they’re going to go higher.
Operator: Our next question comes from Benoit Poirier with Desjardins Capital Markets.
Benoit Poirier: Just to come back on the transformational program that you were awarded, Marc, you mentioned that there was only a 3% contribution in the quarter, and this will go up to about 15% next year. Could you maybe provide some color about the profitability early days for those transformational programs? Just wondering about the accretion early days, whether they still contribute at a good profitability level or it takes two years or three years before ramping up at a good profitability level.
Marc Parent: It depends on the program, okay, Benoit? Because it’s a service contract, typically, they will — it will take longer to — because obviously, you’re delivering service over time. Rather than products, which tends to do it — tends to turn into revenue faster. In both cases, they’re going to be accretive to the double-digit goal that we have. So — and that will happen right — right from the get-go, right from the start. So, you won’t have to wait long for that to start being accretive to the numbers that we see.
Benoit Poirier: Okay. And just based on the comments made earlier about the pace for the legacy programs to ramp down, you mentioned mostly completed at the end of fiscal year ’25, consensus is currently expecting Defense margin to high-single-digit next year, almost pretty close to double digit. Is that fair to say that it might be difficult to achieve, based on the comments made earlier?
Marc Parent: Well, as I said, we’re not giving guidance of fiscal ’25 today. So, I’ll keep it — what we say throughout the presentation here, not any new guidance from what I’ve said.
Benoit Poirier: Okay. Okay. And last one for me. Capital deployment, Sonya, you made great color about reinstating returns to shareholders. In the opening remarks, you mentioned the focus on growth, debt repayment, investment-grade, and then return to shareholders. Are there any optimal ratio you would like to operate going forward?
Sonya Branco : I think like we mentioned in the past, the 3 times was not necessarily the goal but a waypoint. So really, what we’re seeing is that we continue on the balanced capital deployment with deploying accretive capital, especially in the Civil network, whether it’s the training centers and the simulators to address demand, and these are highly accretive within 24 to 36 months, as we’ve seen in the past. And we’ll continue to delever to kind of remain very comfortably investment-grade. So ultimately, it’s a balance of those and an ongoing conversation with the Board on potential capital returns — shareholder returns, yes.
Operator: Our next question comes from Ronald Epstein with Bank of America.
Unidentified Analyst : Good afternoon, everyone. This is Mariana Perez Mora up for Ronald today. So, my first question is about utilization rates. You have been growing a lot and penetrating in the civil training market and with all these training centers, and utilization rate is up to 71%. But you keep opening like new sites. What is the sweet utilization rate kind of like spot when you think about both profitability but also being able to capture these opportunities? And when do you think you could achieve those type of like peak utilization, sweet spot rates?
Marc Parent: Well, look, I think basically, it’s tough to answer your question specifically because you could — I mean, we can theoretic can go up to 100% utilization, not higher on any of the training centers. And you know what, we actually do that today on a number of training centers. But you can’t maintain it there for the cold fleet as a whole because, obviously, you’ve got to spend time for maintenance, things like that. And I would say that 100% is not like every hour of a year. I mean, in terms of our commercial [indiscernible], about 6,000 hours a year or business aviation training centers, 4,500 hours a year, which is more reflective of the kind of schedules we can do with business aircraft. But look, our utilization here is going higher on average.
