Ronald Epstein: Got it. Got it. And have you guys seen any airlines, any customers yet requesting retrofits and upgrades to interiors on their existing widebody fleets?
Greg Hayes: You know, Ron, that’s actually an ongoing process. We’re in the process of working with a number of airlines as they are going through their retrofit. And keep in mind, that is a three- to five-year process to upgrade these things. So we are still finishing out things that we had signed up for back in 2018, 2019. But again, as Neil said, the business is coming back. But given the long cycle nature of these upgrades, you’re not going to see a heck of a lot of that in ‘24, more than ‘25 and certainly more than ‘26.
Ronald Epstein: Got it, cool. All right, thank you very much.
Chris Calio: Welcome. Sure.
Operator: Thank you. Our final question comes from the line of Seth Seifman of JP Morgan. Your question please, Seth.
Seth Seifman: Yes, thanks. So, good morning. Maybe just following up on Collins and kind of the growth outlook for this year when we think about how much OE production rates are rising. We think about the strengths in the aftermarket. What’s the potential for upside on the top line there? And I guess how much is a drag on the military business? It’s a pretty significant chunk of the portfolio and given the growth rate in the second-half and what you’re forecasting overall for ‘24, it seems like maybe this isn’t a business that’s really a military business that’s going to participate in the budget growth and outlay growth that we’re seeing now?
Greg Hayes: Good morning, Seth. Let me start, I wouldn’t characterize the defense business within Collins as a drag. I think the defense business in ‘23 was flat at the top line and it experienced a lot of the same issues we’ve been talking about on the Raytheon side in terms of the impacts of inflation, the delays in the supply chain. But as we look to ‘24, we’re going to see, I’d say, healthy growth there, low to mid-single-digits as we catch up and the supply chain catches up and we burn down the overdue there. And I think we’re really well positioned on a lot of strategic platforms. Remember, we moved businesses from the Raytheon segment into the Collins Mission Systems business to create more synergistic opportunity there.
And I think that’s really taking hold and there’s a lot of good proposal activity there. So I think it’s a great fit. It’s in the right place in Collins. More broadly, I think just talking about the aftermarket potential at Collins, very strong, but we just put up some significant numbers there with aftermarket of 26% and provisioning up 42% on a full-year. So clearly there’s been a surge in aftermarket over the last year, and so we’re dealing with some very difficult compares. And on the OE side, we’ll start to see that growth moderate, but again, still on the back of some really strong 17% growth in ‘23. So I think Collins is well positioned and I think the defense business is a good fit and it’s in the right place there for it right now.
Chris Calio: Again, I’ll just add, much like the interiors, I think Steve and team have a plan to continue to drive structural cost reduction within Collins to help, you know, margin expansion. We’ve talked about, you know, moving engineering presence to best cost locations by 2025 by significant number, same with manufacturing hours. So a lot of Center of Excellence activity going on in Collins that will continue to help with their cost footprint and support the margin expansion.
Seth Seifman: Great. Thanks very much.
Chris Calio: Thank you.
Greg Hayes: Okay. Thank you, everyone, for calling in and listening today. As always, Jennifer and her investor relations team will be available all day to answer whatever further questions you might have. So with that, thank you and have a wonderful day. Take care.
Operator: This now concludes today’s conference. You may now disconnect.
