And I think, again, all of the segments should see the benefit of that here in 2024.
Operator: The next question is from the line of Peter Arment with Baird. Please proceed with your question.
Peter Arment: Yeah, thanks. Good morning, Chris and Ken. And welcome, Ken. Hey, Ken, maybe just on guidance, if there is, could you maybe level set us just on cadence if first half versus second half, anything to really call out? And then also it was highlighted at the Investor Day that working capital would certainly be positive contributor in cash over the kind of the guidance period. How are you thinking and seeing any opportunities from a working capital perspective, and maybe just working capital profile going forward? Thanks.
Kenneth Bedingfield: Sure. Thanks, Peter. I appreciate the question. Yeah, in terms of cadence, I would say as we look at the — as we look at 2024, we think the revenue growth itself should be relatively steady throughout the year, probably a relatively even split 50-50 between the first half and the second half in terms of the growth from 2023, quarter-by-quarter, probably a little more of an accelerated ramp on the revenue side starting in the second quarter. In terms of EPS, I would say we’ll kind of follow the margin trend. Talked about the margins would be a little bit slower in the first half of the year as we saw a strong performance in the fourth quarter, kind of across the board at the segments. And so we expect that to kind of build momentum as we work through the year.
That margin momentum should fall through to EPS. And again, we’ll probably see that kind of build sequentially, quarter-over-quarter through the year over 2023. And then from a free cash flow perspective, and on the working capital question, I would say the free cash flow profile will continue to be weighted towards the second half of the year. And on working capital, I think the team did a great job in driving down our working capital at the end of ’23, but the work is never done. We’ll continue to try to improve that in 2024, but we’ve got a lot of confidence in our growing free cash flow. We talked about 10% free cash flow growth that will be driven by certainly the margin growth, the margin improvement on growing revenues as well as continued and disciplined balance sheet management.
Christopher Kubasik: And I’ll just chime in, Peter, the continuing resolution. While we’ve had one every year since 2010, and I think we in the industry know how to deal with it, it does tend to slow things down, really, from a customer perspective. So as I mentioned, we are under a CR through March. Hopefully we’ll get a defense budget and eleven other appropriation bills passed so we can get back to normal. But that causes a little bit of the slow start, unfortunately, like it does pretty much every year for the last 13.
Peter Arment: Thank you.
Operator: Thank you. Our next question comes from the line of Seth Seifman with JPMorgan. Please proceed with your question.
Seth Seifman: Hey, thanks very much, and good morning, everyone.
Christopher Kubasik: Hey, Seth.
Seth Seifman: I wonder if you could talk in the Communications business where 2023 ended up on tactical radio sales and what you expect in 2024 for domestic and international and kind of the trajectory for each of those?
Christopher Kubasik: Yeah, let me take that. We actually had a pretty — we had a great year in CS and especially tactical radios specifically. The interesting thing here, as we talk about the margins, is really the mix between the DoD and the International. So when I looked at the first two quarters, we were heavily weighted towards International versus domestic and then it flipped again in Q3, Q4. And we’ll start 2024 with a little more domestic deliveries than commercial, and then it flips in the back half. So we had a record year when it came to revenue in TCOM. I think the business is really coming together quite nicely. We’ve overcome most of the supply chain challenges. I know when we talked in the past, we literally had hundreds of key suppliers that we were tracking.
Now we’re down to just a handful. So the results are getting better. We’re getting dual sources. And in fact, we’ve recently had some wins in some new markets that we’ve been informed of. We’re not authorized to disclose them quite yet, but there’s a lot of good news coming out of TCOM.
Operator: Our next question is from the line of Robert Spingarn with Melius Research. Please proceed with your question.
Robert Spingarn: Good morning, Chris. Welcome, Ken.
Christopher Kubasik: Good morning.
Kenneth Bedingfield: Thanks, Rob.
Robert Spingarn: So Chris, Ken touched on this, but maybe a quick operational update on Aerojet, but more in the context of some of these supply chain bottlenecks that are still there. Now obviously, this started well before your acquisition and part of the value proposition there is getting it back on pace, but a couple of things. Does it make any sense to bring any of the problem suppliers in-house? And then Lockheed’s talking about standing up a third supplier, Anduril is building a business. So I wanted to see how you think about the longer-term market share implications if others come in.
