So we’re one of two companies competing on that. And in a couple of years, we could be down-selected a new market. And another example dislodging a long-term incumbent. And then of course, innovation with cyber, there’s something going on there every day and you kind of have to innovate daily to stay ahead of the threat and we’re doing that and seeing good growth and good performance in that domain as well. So I hope that answers your question.
Kenneth Bedingfield: Rob, we’ll go ahead, and take our last question this morning.
Operator: Thank you. Our last question is from Doug Harned with Bernstein.
Douglas Harned: Good morning. Thank you.
Christopher Kubasik: Good morning, Doug.
Douglas Harned: Chris, right now you’re looking at Aerojet Rocketdyne, and I mean, demand in that market is just getting better and better and you talked a little bit about the NGI win earlier. But when you look at the demand there and I think back to, I remember, a year ago talking with you about the situation at Aerojet Rocketdyne, Camden, for example, and how serious the bottlenecks were in trying to get production up. So when you look at the business now and you see the potential to ramp up. Can you talk about what kind of growth you could potentially get from that business? And then where you stand in the process of being able to get those bottlenecks out and really move production higher.
Christopher Kubasik: Yeah, Doug, great question. And yeah it was about 16 months ago when we announced this acquisition and I think I agree with you. When I look at where we are now the business case gets better and better. The demand, there was no conflict in Israel. People thought Ukraine would be done. Nobody anticipated a $900 billion of defense spending for 2024. So the tactical missiles, the nuclear deterrent, NGI, there is just tonnes of opportunities on SRMs. Over the long-term, call it five, seven years, double-digit growth on the top line does not seem unreasonable to me. We have to, of course, invest in the capacity. You know, the bottlenecks, some of them are based on low yields and performance and supply-chain. I think we’ve made good progress in that regard, investing in our suppliers, getting additional suppliers.
I continue to think the more money the government can give to the supply chain, the better off we are. I continue to believe we don’t need in the — an additional solid rocket motor prime. What we need is the — someone working on the igniters, the nozzles, and the cases. And I think that would help unlock the potential. We’ve ordered equipment to continue to expand, whether it’s mixers, ovens, they unfortunately tend to have a 50, 60 week lead time, but we placed those orders. And once we get that in, I think it’s going to be a help with the ramp. We have DPA money to build some buildings, take existing facilities, and modify them. So the consolidation and peace dividend and budget control acts for a decade kind of stifled the ability for companies to invest and grow and inconsistent demand signals.
But right now, I think everything is a potential tailwind. And we’ll have the factories digitized by the end of this year and we’re making the investments and fixing the processes. So pretty excited about it. And you know 2024 is kind of catch-up and continue to burn down the delinquent backlog and simultaneously invest and put in processes. But I think by the time we get to 2026, 2027, if all stays as is, it’s going to really turn out to be a great acquisition. So I appreciate the question, Doug.
Christopher Kubasik: And let me just wrap it up. And first of all thank the workforce and the leadership team for a great first quarter. Obviously, thank you all for joining the call today. And Ken, Mark, myself and the team will be engaging with many of you in person in the months to come. So thank you all and have a great weekend.
Operator: Thank you. This concludes today’s teleconference. You may disconnect your lines at this time. Thank you for your participation and have a wonderful day.
