Jason Gursky: Okay, great. Good morning everybody. Recognizing that you’ve got two other segments, the last caller here, nobody has touched on BDS.
Dave Calhoun: So, Jason, thank you.
Jason Gursky: The first on the services business. Look, the operating margins there have been quite healthy over the last year or so, and I think are operating well above kind of your targeted margin range for that medium-term targets out there in 2025, 2026. So, the question is, can we sustain the margins that we’ve got that we’re seeing today out into that period? And then over on BDS, the incremental charges seem like they’re coming down quarter-on-quarter. But Brian, just kind of curious, are there some — any significant milestones or risk retirements that you’re — that you could point to here over the next 12, 18 months that kind of give us a little bit of an idea of when those things completely go away and we begin to start seeing that financial model that you’ve talked about start to lock in for that 2025, 2026 timeframe? Thanks.
Dave Calhoun: Let’s split this, Brian. I’ll do the services. You can handle the defense contracts. So, services. The one thing that I don’t think anybody’s factored into margin for us in services, a big profit pool that we have is our distribution business. This was the acquisitions of Aviall, KLX over the years. This calendar year, we have a full integration of those two distribution companies in mind. I’ve reviewed this program. This will be another important productivity stepping stone for the business that, in my view, provides for a sustainable margin improvement and just a better, smarter, simpler way of doing business around the world. So that project is in full swing. We will likely do the change somewhere in the fourth or first quarter of next — fourth quarter this year or the first quarter of next year.
We’ll let that team tell us when they want to pull the trigger. But that one is a pretty big one. And it’s a pretty important one. It’s one I’ve always wanted to get done. It will take those brands out of play. It will simply be a Boeing brand. And the integration in the warehouses broadly across our company, it’s pretty significant. So you want to hit the…
Brian West: Sure. On BDS, Jason, characterize in a couple of ways. We’re retiring risk every day, particularly on a program like VC-25B, which will move our way through. And we will deliver 2 airplanes, and then that will be over as a program. The ones that are interesting to us in terms of the development side would be the T-7 and the MQ. T-7, we expect to get through the flight test program, good progress with the customer. It’s proceeding well. That’s an important milestone as we exit this year. Similarly, on MQ-25, we will get to the build, we will get to the software integration, and we will be able to get through an important milestone with the customer as we exit this year. Importantly, on the MQ-25, as I mentioned, we just signed with the customer 2 additional airplanes that are going to be cost type.
That’s important, another move towards our intent to derisk. And then on the commercial crew, we’ve got a launch coming up. That will continue to derisk that program. And the Tanker, the Tanker continues to show good progress. It does get impacted somewhat by our determination to reduce traveled work. But long term, the Tankers are performing in the field. We’re getting a better handle on what that needs to look like over time, and we’re confident that we’re derisking it. So, by and large, we still feel confident that we’ll work our way through it. And that will result in a BDS margin level as we get into the ’25, ’26 time frame that we believe is going to be in the high single digits. Nothing has taken us off that, and we look forward to retiring these risks.
Jason Gursky: Okay. Great. Thank you, guys. Appreciate it.
Matt Welch: And that concludes our call today. Thank you, everybody, for joining.
Operator: Thank you. And ladies and gentlemen, that does conclude our conference for today. Thank you for your participation and for using AT&T Teleconference. You may now disconnect.
