Operator: Thank you. Our next questions come from the line of Scott Deuschle with Deutsche Bank. Please proceed with your question.
Richard Maue: Good morning.
Scott Deuschle: Rich, sorry if I missed this, but how does the aftermarket growth at A&E in the fourth quarter decomposed between commercial aftermarket and then defense aftermarket?
Richard Maue: Yes. Commercial aftermarket was up about 44% and defense was up 11%.
Scott Deuschle: Wow. Okay. And then, Rich, for the 10% core growth at A&E in 2024, can you say how that outlook bifurcates between commercial aero and defense, or any kind of split just between the different end markets there for 2024 and that 10%? Thanks.
Richard Maue: Sure, Scott. We’ll definitely provide a lot more detail at our Investor Day, but just to give you some maybe high-level numbers. Commercial OE is going to be up in the, call it, mid-teens area. Military will be maybe below single-digit to flattish, something like that, just given the momentum that we saw there all year. And then on the commercial aftermarket side, we’re looking at low double-digit military will be in the double digit, I would say, firmly in the double-digit area, if that helps.
Scott Deuschle: Okay. Yes. And then switching to PFT. I appreciate the conservatism on the margin outlook there, but can you go in a bit more detail as to why the margins would only expand 10 basis points in 2024, or maybe to ask it a different way, what scenario are you protecting yourself from with that [indiscernible]?
Jason Feldman: Yes. I mean remember, it’s on flat organic growth. We’ve got an acquisition that initially is going to be slightly dilutive to margins longer term, it won’t be. But next year, it will be. And the mix, right, if you think about the commentary in terms of what’s been softest for us over the past couple of quarters and what we expect to be softest into 2024, it’s chemical, right, which is a good margin business for us. So there’s going to be likely unfavorable mix.
Richard Maue: Yes, I would just supplement with the pricing associated with next year as well. So we are doing continued — the teams are doing a fantastic job continuing to drive price that would offset what you’d obviously expect in the way of continued inflation, right? So that all taken together drives that flat margin performance, which given the volumes, in our view, a pretty good print for us.
Scott Deuschle: Right. Okay. And then last question, just, Rich, anything on cadence for PFT margins for the year? Thanks.
Richard Maue: Yes, it will be fairly level loaded through the year. There might be a little bit of strength in Q3. But right now, as we’re looking at it, it’s going to be fairly level loaded maybe a little, little bit shy or lower in Q1.
Scott Deuschle: Thank you.
Operator: Thank you. Our next questions come from the line of Justin Ages with CJS Securities. Please proceed with your questions.
Justin Ages: Hey good morning. Thanks for taking the questions. First one, just on hydrogen. I know you mentioned some shipments that were going out. Can you just give us an update on when that’s going to reach critical mass, when we can expect it to turn, inflect, basically?
Max Mitchell: That’s a good question as we think about inflection. I mean, we’re building this business up ground up. This was — we had looked at an acquisition years ago in the hydrogen space, and we’re not successful. We clearly set our sights on the market. This is right in our sweet spot. So we have the core capability in balance piping. And we said on this journey, we’re building this business. We’re also looking at some M&A as we move forward. But right now on core, we see this as a — easily by 2030, we’re using some very large numbers internally that we are switching towards. I hadn’t thought about the inflection point critical mass. But clearly, by 2025, I think we’re seeing some [indiscernible] to provide more color at the Investor Day, too, Justin.
Justin Ages: Perfect. No, that’s helpful. And then just on acquisitions, Baum has been nice to see, Vian has been nice to see. And I think you mentioned in the prepared remarks about focusing on midsize. Can you give us an update? Are you currently involved in any processes? Are you close? And are those in A&E or PFT?
Max Mitchell: I’d say there’s a lot of activity in both, which is normal. So our funnel is full. There’s a lot of activity. It bodes well for the first couple of quarters here potentially. We’ll see. But very solid activity.
Justin Ages: I appreciate the update. Thanks for taking the questions.
Max Mitchell: Thanks Justin.
Operator: Thank you. Our next questions come from the line of Mariana Perez Mora with Bank of America. Please proceed with your question.
Mariana Perez Mora: Good morning, everyone.
Richard Maue: Good morning.
Mariana Perez Mora: So my question is on Aerospace & Electronics, and a follow-up to Scott’s on the end markets. Could you please describe how much is like wide-body versus narrow-body in driving this like mid-teens growth for commercial OE? And as a follow-up to that, how are you thinking about this like phrase in the 737 MAX production?
