And that point has been reaffirmed, I think, over and over by airline operators who continue to push for more planes to be delivered. Obviously, you talked about MRO, the industry needs new planes as we get older planes flying, and that increases MRO needs. So in this case here, if you would see any type of movement on the OEM side, that MRO demand would go up even further. And certainly Carpenter Technology were central part in delivering that demand, whether it be OEM or MRO, because as you know, where we’re at in the supply chain, our product can branch out into many different ways. So I think really what we’re discussing here with this specific news is how and over what period of time the supply chain is going to be able to meet that demand.
But make no mistake, that demand is going to be there. And if I could say one more thing, meeting that demand in a safe, responsible, and quality way is what Carpenter Technology is already focused on. You’ve heard us talk about that all the time. We’re not going to push rates up. That’s going to sacrifice safety or quality. So we totally agree with the approach being taken in the wider industry. That should be the focus. And as you bring that type of discipline to the entire supply chain, you’ll see those build rates push out, obviously, and I believe you’ll see this super cycle extend, which is really good news for suppliers like Carpenter Technology. Hopefully that answered your question, Josh, but happy to take any follow-up.
Josh Sullivan: Yes. No, it does, just kind of on the follow-up, though just taking that together in your comments during the call, just about the upside pressure to the 2027 targets. I imagine that all incorporates into that. And so I think you did cover that, but yes, thank you for the time.
Tony Thene: Yes. Thank you, sir.
Operator: [Operator Instructions] And now we have a question from Chris Olin from Northcoast Research. Chris, please go ahead.
Chris Olin: Hey, good morning, guys.
Tony Thene: Good morning.
Tim Lain: Good morning.
Chris Olin: Wanted to just ask a question on Dynamet, I realize that business uses surcharges to pass through the higher costs like titanium, but I’m wondering if there is any risk to margins given the upward movement that we’re seeing in the titanium sponge market now. I guess, in other words, does Dynamet have any exposure to fixed pricing on the aerospace side, or is there a point where we start thinking about elasticity of demand or like some of the customers halting purchases because the price points get too high?
Tony Thene: Well, as you well know, Chris, that can be a pretty complicated question. As you said, we have surcharge mechanisms that protect Dynamet. Certainly, there can be movements between quarter and quarter if any of those are material and they haven’t been in the past – certainly call those out, but no issues there. And our surcharge moves from time to time based on the current market. So we have that in place. I think the bigger story with Dynamet is the potential that it has to move even generate more earnings. They’re very similar to SAO in that standpoint with the markets they serve 95%-plus aerospace and medical demand is very strong, and we’re looking for ways to increase our supply out of Dynamet. So as we look forward, Dynamet is a big growth driver for us, and I don’t anticipate any risks around the titanium sourcing.
Chris Olin: Okay. Commodity nickel pricing has been falling. I’m just wondering if that had any negative impacts on the business at all, even when you think about some of the distribution markets.
Tony Thene: We just announced a record quarter and said that we’re going to increase it significantly over the next two quarters and have the highest profitability year in the history of the company. So, no, we do not see any negatives in terms of nickel billet pricing.
Chris Olin: Thanks.
Operator: And we will follow with a question from Samuel McKinney from KeyBanc Capital. Samuel, please go ahead.
Samuel McKinney: Hey, good morning, guys. First, speaking to your energy end market sales, you had a big sequential and year-over-year sales improvement. Within that, what are you seeing from power generation to we assume that’s a bigger piece of the energy pie than oil and gas.
Tony Thene: That’s a fair comment. These orders are placed sometime out, so as they come into the queue, that’s how it laid out in our second quarter. And certainly, power generation is a small market for us, but as you can tell a profitable one. And you saw some of that spike in demand come through in the second quarter. So that’s good news for us. As we’re more than happy to take that type of business and prices in that market are obviously moving in step with current aerospace pricing.
Samuel McKinney: Okay. And then any way to quantify or discuss the power gen versus oil and gas split within energy?
Tony Thene: Well, energy is a small part of our overall portfolio. So you could say that it’s roughly 50/50, but that moves – that can move from quarter-to-quarter based on the market. And in this case, in the quarter, we just completed that was primarily power gen.
Samuel McKinney: Okay. Thank you. That’s helpful. And then next for me, can you just outline the jet engine revenues quarter-over-quarter for us?
