Robert Spingarn: Thank you.
Operator: And we will take our next question from Peter Arment with Baird. Your line is open.
Peter Arment: Thanks. Good morning, Phebe and Kim.
Phebe Novakovic: Good morning.
Peter Arment: Hey, Phebe. Phebe, the Army wants to reach 100,000 155-millimeter shells by, I think, October 2025. Can you update us on how your ramp is going? You discussed that that supply chain is a little more robust.
Phebe Novakovic: Yeah. So, our ramp there is more about increasing the facilities that we have. And as I noted in my remarks, the opening of our Texas facility, which we worked very, very hard to expedite, and frankly, did it in almost record time, was very important because it increased the throughput and the productivity of the number of shells by 83%. So, we’re on track with the Army to get where we need to be and our objective is to move even faster, and so far we have been. But the Army has been a critical and extremely important partner here in what is really a national security imperative.
Peter Arment: Yeah. Thanks for that. And then just if you could make any comments on the G280 program, just given the conflict that’s going on in the Middle East?
Phebe Novakovic: So, we had anticipated the impacts on the 280 in our guidance to you, but I will tell you that they are doing quite well and are slightly ahead of our schedule. We’re still sticking to our deliveries, but I think it’s notable that they’re managing pretty well in this tough environment.
Peter Arment: Appreciate the call. Thanks, Phebe.
Operator: We will take our next question from Cai von Rumohr with TD Cowen. Your line is open.
Cai von Rumohr: Yes. Thank you, Phebe, and good quarter.
Phebe Novakovic: Thanks, Cai.
Cai von Rumohr: So, could you update us on the status of the G400? How’s it doing and is it fair to assume that it might have a gap of approximately 12 months between its certification and that of the G800?
Phebe Novakovic: I think I said last quarter, I’m done predicting process over which we have little control. We’ve tried in the past to give you indicators of our internal or actually our internal dates, but so I’m kind of out of the detailed predicting mode. But I will say the program is doing extremely well and it will fly in the third quarter and I think we’ll be flying a pretty mature airplane.
Cai von Rumohr: Excellent. And then your R&D was up a fair amount in the first quarter. Could you give us some color of the pattern of the R&D at Gulfstream this year and looking forward? How should we think about that?
Phebe Novakovic: Well, pretty much steady as she goes, particularly this year. We’ve got a number of, as you know, programs in the certification process. And so I’d see that at least through this year is pretty consistent. No real surprises here. Steady as she goes.
Cai von Rumohr: Okay. Thank you.
Operator: And we will take our next question from Jason Gursky with Citigroup. Your line is open.
Jason Gursky: Good morning, everybody.
Phebe Novakovic: Good morning.
Jason Gursky: Phebe, I wanted to just quickly go back to your comments on Aerospace and what I guess you’d describe as an elongation of your sales cycle. But you could just talk a little bit about the overall size of the pipeline and how that is evolving. I understand things are taking longer to close, but I’d also be kind of curious to know whether there are an increasing number of people that are interested?
Phebe Novakovic: So the pipeline remains robust, and I look to that as encouraging, a good sign. It’s been that way for a while. People want our airplanes and that’s driving demand.
Jason Gursky: Okay. Great. So good metrics going on there, it sounds like. Then just really quickly, maybe this is a question targeted at Technologies, but I’d love to get some updated thoughts from you on artificial intelligence, AI, the adoption that you’re seeing with your customers, how you see this kind of playing out and affecting your business and maybe this, as I suggest, focused on Technologies.
Phebe Novakovic: Yeah. So we have been investing in AI to support our customers, and particularly, at GDIT and somewhat at Mission Systems. And I would say that we’re working closely with our customers. They define what the art of the possible is for them in AI. And as you all know, there’s some governance challenges around that, but the more sophisticated we get in our ability to tailor AI solutions, I think, the more comfortable our customer becomes and will ultimately drive some increased revenue. I haven’t seen too much of that yet, because there are — I think the government is not unlike other industries where its adoption is people are careful and they think properly so. And I would argue that would be true across the entirety of our business. Abby, I think, we have, sorry, okay, I think, we have time for just one more question.
Operator: Thank you. Our final question today comes from Gavin Parsons with UBS. Your line is open.
Gavin Parsons: Thanks. Good morning.
Phebe Novakovic: Good morning.
Gavin Parsons: Phebe, you highlighted the stronger second half Aerospace margins, that’s a more normal volume and G700 production. Is that more of an appropriate starting point for 2025 than the full year 15%?
