Mariana Perez Mora: Perfect. Thank you so much for the color.
Operator: Thank you. One moment for next question. Our next question comes from the line of Sam Struhsaker with Truist Securities. Please proceed with your question.
Samuel Struhsaker: Hi. Good morning, guys. On for Mike Ciarmoli. Congrats on a pretty nice quarter here. Kind of just building off of the prior line of questioning a little bit. Regarding these kind of delays in the submarine pipeline, do you guys see any maybe more near-term opportunities kind of before that South Carolina facility is done where you guys might be able to take on a little bit more work? In addition to what’s already been — what’s already kind of happened that might kind of see some more near-term opportunities there or would you really just kind of be looking for what you guys just discussed on a slightly longer-term basis?
Bill Lynn: In terms of the larger opportunities, which would be new classes of ships, DDGx and SSNx. Those are several years away in terms of real revenue, the international opportunities are a little bit closer in. And the real revenue increase in the immediate term for us is the growth in the Columbia Class submarine as we move up the curve shift set by ship set.
Samuel Struhsaker: Great. I guess, while I was kind of getting at more so is, do you guys see any opportunity where kind of some more work might be able to be passed on to you guys within the existing programs which you’re on to kind of try to help aid with these issues getting up to rate by the broader industry?
Bill Lynn: Yeah. That’s what I was talking about with the South Carolina facility is that, if you redistribute the work or you moved some of the work that’s done now at the yards into our South Carolina facility to allow a higher throughput at the yards, that would be certainly an expansion of our revenue base.
Samuel Struhsaker: Got it. And then one more here kind of on the fiscal year ’25 budget. Do you guys have any kind of opinion there on how that’s looking for you guys, push and takes?
Mike Dippold: Yeah. The ’25 budget that dropped. Again, I think as Bill kind of alluded to earlier is that it wasn’t really a surprise. And as we look through the funding line items, we feel our programs were pretty well fed. I think that goes to the platform agnostic approach that we’ve had and where we align with the modernization priorities, both with the Navy and the Army and the Greater Defense Department as a whole. So we feel pretty good about where we landed in our first kind of glimpse at the ‘25 budget.
Samuel Struhsaker: Got it. Thank you.
Operator: Thank you. One moment for next question. [Operator Instructions] Our next question comes from the line of Jonathan Tanwanteng with CJS Securities. Please proceed with your question.
Jonathan Tanwanteng: Hi. Good morning. Thank you for taking the questions. I just wanted to push the guidance from a different angle. Last quarter, I think you mentioned that the lower end of the range was predicated on maybe more extended spending and budgetary issues given that we’ve seen both the passage of the spending bill on the Ukraine bill, would you expect to be more at the midpoint or the upper half of the range now? Just how are you thinking about that, just given the updates to how spending is going to play out this year?
Steve Vather : Yeah. I think the budget passage and the supplementals are certainly a nice occurrence to happen as early as they did. We’re going to see how those outlays flow in terms of when you’re going to start to see the order flow because of those passages. And if the trends continue in a positive way, that could be a nice tailwind. But right now, we’re still targeting towards the midpoint of the guide and are going to see how this plays out for the next quarter or two.
Jonathan Tanwanteng: Okay. Fair enough. And then just regarding the pushouts of these more — the newer platforms and the Navy ships, maybe beyond the end a decade. Can you just tell us maybe what the net change in your opportunity set is through the latter half of the decade, you’ve obviously seen more demand flow in to enforce protection and other things that are going on. Maybe the Navy starts to spend more, as you’ve indicated, on production of what they have in hand. Is that a net decreasing opportunity through 2030, or that is pretty much static just given the puts and takes?
Bill Lynn: The DDGx and SSNx were always at the end of the planning period. So that hasn’t really changed our opportunity set. The more immediate opportunities are the growth in Colombia, the opportunities provided by the submarine industrial base and the international opportunities. Those are the things that are in the next three, four years, those are what’s going to drive growth.
Jonathan Tanwanteng: Okay. And so, basically, the overall opportunity set hasn’t changed even with the pushouts in some places?
Bill Lynn: Exactly.
Jonathan Tanwanteng: Okay. Understood. Thank you.
Bill Lynn: Thanks, Jon.
Operator: Thank you. This concludes the question-and-answer session. At this time, I will turn the floor back to Steve Vather for closing remarks.
Steve Vather: Thank you all for your time this morning and your interest in DRS. Of course, if you have follow-up questions, please don’t hesitate to call or e-mail me. We look forward to speaking with all of you again soon. Enjoy the rest of your day. Thank you.
Operator: Thank you. This concludes today’s conference. You may now disconnect. Thank you for your participation.
