Christian Zyla: This is actually Christian Zyla on for Steve Barger. Given 1Q’s strong operational beat, if you were to see upside in the back half of the year guidance, any thoughts on what segment that would come from?
Michael Pack: No. We just — I guess what I’d say is we had a strong Q1, a solid increase to our revenue expectations and EPS than — and you certainly see that our businesses are performing well, and that will continue to be the focus for the year. So certainly, we see strength right now in Vocational and Access.
John Pfeifer: Yes. And Christian, I like the question. We feel really good about all of our businesses, and we feel good about them, because they all have good opportunities. Vocational got great opportunities to continue to outperform and in manufacturing and delivery with big backlogs and really good programs. But Defense, I could say the same thing about. I can say certainly Access is always that way. The team is always going to try to strive and continue to drive improvement in the business. So we look at the world as half full — where the glass is half full as we look forward, we got opportunities in our businesses.
Christian Zyla: Great. And then it looks like you’re already going to hit the bottom end of your $11 to $13, ’25 targets by the end of this year. Not looking for guidance, but is it the high end of that range, what you’re thinking about for ’25? And any thoughts on what comes after that, given the order and backlog visibility really into ’25 already?
John Pfeifer: Well, I mean, thanks for the question, Christian, because we are delighted that we are hitting our 2025 long-range guidance 1 year early, which as you just said, is exactly what we’re doing. Now that doesn’t surprise us, this type of performance, we always knew we’ll get to this level of performance. We’re just doing it a little bit faster than what we had forecast to the world we would do it at. That’s all really, really good. We’re not providing guidance today for 2025. We will provide guidance for 2025 when the timing is right. But we look at the health of the access market. We look at the strong position that we have in the Vocational market. And in 2025, we’ll start to see some positive change in the Defense business. We — that’s what I’ll say about it.
Operator: Our next question comes from the line of David Raso with Evercore ISI.
David Raso: As you get closer to volume ramp on the postal truck and you’ve gotten obviously a little more familiar with the BEV production process. And obviously, it sounds like a large majority from the get-go is going to be BEV. Can you give us an update where you’re comfortable thinking about profitability for that program? I know you’re not going to give us an exact number, but just give us some update on your thoughts now that obviously, we kind of started to think to be a little more ice to start, but obviously, now it’s clear, it’s going to be BEV from the get-go. So I’m just curious.
John Pfeifer: You want to answer it, Mike?
Michael Pack: Yes. I would say, David, our view hasn’t changed. I think ultimately, we said by 2026, we’ll be at full rate production, we would expect, as we’ve said all along, stronger margins in our traditional tactical wheeled vehicle margins. This year, we’ll have some start-up costs, so it’s not — and volume is relatively low. So next year, we see a really strong ramp, so it’s going to be between that. And I think that’s about what we’re going to — what all we’ll say at this point in time. But we’re pleased with the progress and the outlook.
Operator: Mr. Davidson, we have no further questions at this time. I would like to turn the floor back over to you for closing comments.
Patrick Davidson: Thanks, Christine. And thanks to everybody for joining us today. We’re pleased with our strong start to 2024. We look forward to speaking with you at a conference or one of the trade shows where we will be showcasing our technology and mobility. Our Volterra ZSL will be on display at WasteExpo from May 7 through the 9. It will also be shown at the Advanced Clean Transportation Expo in Las Vegas on May 21 through 23, and along with the U.S. Postal Service’s Next Generation Delivery Vehicle. Please reach out to us if you have any follow-up questions, and have a great day.
Operator: Ladies and gentlemen, this does conclude today’s teleconference. You may disconnect your lines at this time. Thank you for your participation, and have a wonderful day.
