Good afternoon. The next presentation for you we have is Core Molding Technologies, based out of Columbus, Ohio, not too far from here. They're a client of ours as well, ticker CMT. With us from the company, we've got David Duvall and then our CFO, Alex Panda, will join us in a few moments. With that, I'll turn it over to David.
Thanks, Steven. Good afternoon, everyone. My name is David Duvall. I'm the President and CEO of Core Molding Technologies. I have Eric Palomaki here with us. He's our COO. I was given the name for Steven to pronounce it. I think I got it right. We have Alex Panda on his way back with some show-and-tell samples for you. I'm going to start on slide three, because I think what's important about where we are with Core Molding is the journey and where we are today. I think this really tells the story. My goal today is to be able to convince you and show you that where we are today has been purposely developed. We really focused on the internal execution of Core Molding for the first four years. Where we are today is what we call our strategy as an invest for growth.
Everything we've done was to really turn Core around. When we started, Core was in bank default. In 2019, we came out of bank default to an AVL and then to a cash-based loan. Everything that we did was about developing the organization, getting the right people in place, getting the processes in place, rebuilding the company, and making it a great place to work. You'll see that in some of our turnover. We're less than 6% employee turnover. I think that means a lot relative to cost when you start looking at the cost of a company that really requires technical resources to develop its product. What you'll see is that we first focused on the internal execution. To me, execution is the key part of any strategy. No strategy works without being able to execute. Once you can execute, then you execute your strategy.
You can't go the other way. If you're losing money and you gain more sales, you'll lose more money. I think what you'll see here really through the 2019- 2020 was really the heavy lifting, the turnaround. I probably spent seven days, 24 hours a day on top of presses and fixing hydraulics. Eric and I were out on the floor fixing things. They needed to see that. They needed to see that leadership cared. Leadership was involved. That's how you start gaining the momentum and buying the culture of the company. Going through the turnaround, we were shutting down customers at the beginning. We had quality defects. We get chargebacks. That's what drives the cost of your company. Our product names the brand of our customer. You can't have hoods and roofs leaking and cracking on the field.
I think a big part of that was being able to turn that company around, being able to make it a better place to work for everyone, and to really change the culture to where winners win. I mean, everyone wants to win. Turning that culture around, and then what we did in 2022 and 2023, and what you can really see is the change in the gross margin and the step function change in 2022- 2023. The problem with a manufacturing company, if you're manufacturing it and you're not doing it well, everyone knows you're not doing it well. When you quote a program that might launch in two years from now, you always assume that you're going to be able to fix it in two years, but you don't.
You end up having a program that's losing money because your cost didn't change, but your price is still the same. What we did is we went through our entire portfolio and did what's called a fix or get out. Everybody thought we were crazy. If you're losing money, then it doesn't make sense to do it. We did significant price increases on every truck customer, on every customer we had, and we put our prices back up to what we called market pricing. Everybody thought we were the devil at the time. We lost the Volvo business at this time because we were quoting the Volvo business at the same time that we did the price increase, but we now have the Volvo business back two years later. I think a big part of that is you can't ask for pricing unless you fix the value that you have.
We were delivering on time. We had good quality. We could be trusted. We were providing a good product, but you have to get there. You have to fix the operations before you fix the pricing. Nobody wants to pay you more for something that isn't working to begin with. If I look at where we are with Core, that takes us to where we are today. Our strategy today is really invest for growth. We have cash in the bank. We have $40 million. We have a $50 million line of credit. We have the organization and the execution mentality to really leverage the strategy for invest for growth. That's the key. Everything was done to get to the point where we are today, invest for growth.
Nobody wants to do all the hard work and get oil all over you and fix everything that you have to fix without taking advantage of that. That's why we are where we are. Invest for growth, we've invested in our sales team. We've grown our sales team with account management to take care of ongoing customers and business development with our current new customers, diversifying into industries. Seven years ago, we were 92% truck. Now we're 54% truck. The key is diversifying the business. We're growing wallet share. We have the largest portfolio of processes, being able to offer that to our customers and then combine those processes to create unique solutions. Invest for growth is where we are today. A little bit about Core. We are on the New York Stock Exchange. CMT is the ticker, about 45 years old.
It was a carve-out from Navistar at the time, headquartered in Columbus, Ohio, with about 1,600 employees, about $302 million in sales last year. If you look at why invest in Core, we have market leadership. We have about 87% of the power personal watercraft market, both hulls and decks for all of Yamaha and all of BRP. The only one we don't work with is Kawasaki, and that's because they do a hand-lay-up, spray-up process. It's a very manual process. You look at market leadership in truck, we have about 30% of the entire truck market. A few competitors, high barriers to entry, a press itself could be about $5 million and take another $3 million to install. We have 82 presses installed. It's a significant barrier to entry. Large, diverse, addressable market. Composites are taking over. You look at metals, steels, it's changing to composite.
If it's lightweight, corrosion resistance, easy to handle, it's a significant advantage. Long-term relationships with blue-chip customers. We don't worry about not getting paid. We have international Volvo, BRP, Yamaha, proprietary, highly engineered product. I'll have some SMC samples that we'll pass around here. Feel the difference in weight. You have one that's a standard product, and then you have one that's lightweight, and then you have one in between because nobody wants to pay for the lightweight right away. Same weight, same strength, half the weight. Eventually, the world will go to the lightweight one. Now, it's a matter of when they want to pay for it and what value and advantage they get for it. Personal watercraft, they'll pay for it today. Truck won't pay for it today. Ten years from now, they'll pay for it. Proprietary, we formulate the SMC for those products. We know it.
It's like the Coca-Cola formula. You don't patent it because everybody knows your formula. Single-source technical solutions, everything that we make is designed specifically for the application. Whereas one set of tooling, if I look at the recent program that we won with Volvo, that program in Mexico, it's about $25 million in tooling. They're not going to spend that with multiple suppliers. You'll end up with about 20 different steel molds, about $800,000 apiece, and all the downstream equipment that you have to implement. Product innovation expertise, we'll look at some of those. We are USMCA compliant, which has helped. I think really looking at the addressable market, I would say truck and power sports were in a defend mode. 87% market share in personal watercraft. We still continue to grow on ATV, UTV. New federal regulation requiring skid plates on ATVs.
We now make skid plates for BRP on all their side-by-sides. Golf carts, I think, is another big example of where you see many more golf carts out there that have a very special appeal to them. They're not just something you ride around and beat up on a golf course now. They got them with mag wheels, low-noise tires, and stereo systems. We're seeing a lot more opportunities there. Industrial and utilities, this composite really has an advantage there to where you're not having to use heavy equipment to install it. It can be done by hand. It's 10x faster. Aerospace, what you're seeing there is we're making the base now for satellite receiver systems. They're making 60 of these a week. I did not know they made 60 satellite receiver stations a week. Construction and ag, we'll look at what we're doing there.
We've implemented top coat paint in two of our plants. Con-ag is lower volume than truck in general. They don't have paint in their facilities. We never painted. We really didn't get into that market. Now we're implementing top coat paint to really capture that market. We have all the molding processes that we need for that. Consumer products, this was a really neat one. Eric had developed a way to make fake rocks in about two days. Now working with one of our suppliers, our customers, UFP, to be able to sell faux rocks. I never knew there was over $10 million in faux rocks. It's perfect for composites. Building products, all the lattice that you see, that's probably our lattice that we make, and all the fence posts. A little bit about Core. We have six facilities and a warehouse.
You can see the facilities there spread out really across the Midwest and West East. We are looking at expansion into the West. What you see there in that picture is an SMC machine, sheet molding compound. That is a highly automated machine to where you're actually making the composite. It's from formulated materials itself. Everything that goes into the composite, we completely made. We baked it, added the ingredients, and baked it. Big customers, truck, we do business with all the big truck customers. Navistar, Volvo, PACCAR. We do some with Daimler. Power sports, obviously. Building products, decorators, Jeld-Wen. When we start looking at Jeld-Wen, all the doors that you see, and usually most of the windows, they're SMC. They'll be an SMC inner and outer with a corrugated interior, being able to sell our proprietary SMC to Jeld-Wen to make those doors.
Industrial and utilities, Oldcastle, AFL, we do a lot with Xylem for water treatment. I think if you really look at where we diversify, truck is where we started. We've grown power sports. Power sports actually started with an acquisition that we did, CPI in Winona. We started with about $5 million in business and we're now over $50 million with that customer. That's a big advantage for us. Building products, we're doing a lot with, they call it a deck in a box. Being able to do the decks and all the building products. You talk to UFP and they want to own the backyard. All of that could be composite. Industrial and utilities, the first one there, it's called Tro Troth.
That's about 10x faster to install than a concrete because you're having to, with a concrete, you're having to shut down the rail line and install all the data transmission and energy transmission down that rail line. With that, you can pick it up by hand and install it by hand. A big problem that industrial companies have is the skilled labor to do the installations. If I need somebody that runs a crane, it's going to take me significantly longer and harder to do that. You can do it without a crane. One thing that we are, you'll see in our last earnings release that we will be investing $25 million. We've won the Volvo roof contract. That was the business that we did lose about three years ago when we did a price increase. It feels good to get it back.
The supplier that they had wasn't meeting their demands and wasn't meeting the capacity that they needed. They came to us. We've won that contract. What that'll mean is about $150 million over about nine years program. What that will allow us to do is we're putting a new plant in Monterrey. We have a plant in Monterrey, 47,000 square feet. We'll combine that along with a warehouse into our plant in Monterrey. We will also put our DCPD, which is a reaction injection molding process, which is really for severe duty applications, vocational trucks, things like that, con-ag. You see a lot of that there. We're putting in top coat paint. That puts us right near one of our major customers that uses DCPD and top coat paint. It's not only what Volvo allows us to do because of the size of the program, it's making the investment.
We're making the investment to grow the entire business. That's the key to what we've done all along. What you're seeing, $25 million, we're also expanding our Matamoros plant to put the Volvo program in our Matamoros, moving out DCPD to Monterrey. We'll end up with two larger facilities with capabilities to service two new markets. Looking at new products, up on the top left, you see a new EV truck manufacturer. It's a small truck, low cost. What we're doing is making the side frames in the bed and the bunk in the bed. That's perfect for a composite. It's our DLFT composite. You could throw whatever you want in the back and not damage it. That's a big one for us. On the next, you'll see SMC and top coat paint. Those are new revenue streams for us. We've always made SMC. We've always used our own SMC.
We sell SMC to Yamaha that we've developed specifically for the personal watercraft market. We've never really sold SMC as a new revenue stream. The reason is we never had enough capacity. We didn't have enough, I guess, I would say, confidence in our SMC to be able to sell it out into the general market. Through all the work that we've done, through really focusing on the execution and operations, we've increased the capacity significantly in our SMC. We've improved the consistency of our SMC. We are at the point where we have capacity to be able to sell. We actually did an AI search of the internet on anything that anyone could buy for SMC. We're seeing now at about 400 million pounds a year, not dollars, pounds.
SMC goes for anywhere between $1- $4 a pound, depending on the type of SMC, whether it's the heavy or the light. What you're seeing there, we believe we have a market, addressable market of about 200 million. About half of that is what we see as addressable. The other half, I would say, is captive for people that make their own SMC for their purposes, companies like Kohler, making baths and sinks out of SMC. We see that as a brand new revenue stream for us. We're already selling SMC outside of that. We have eight other customers that we're meeting with. We see that as a huge opportunity for us and top coat paint. Implementing top coat paint now opens up the entire con-ag market for us. Down below that is aerospace.
You can see each of these installations is taking nine satellite receiver dishes, and they're putting in 60 a week. EV enclosures. When we look at where we're doing, where we're working with EV, it's not really automotive. What you're seeing is a lot, it's a lot better application in municipalities. Buses or vehicles that have designated routes, designated lengths, and they come back to a designated spot. This battery is on top of the vehicle, just comes over top of a pick-in-place crane, picks the battery up, puts a new battery in, and then it goes back out on the road. You don't have to worry about, do I have enough range? It's already set. Medical is a big area that we've been focusing. When we look at our composites on medical beds and other medical machinery, it's a perfect match for that.
One of the interesting ones is the carbon fiber molding. Using what we call RTM or our hand-lay-up process, we're able to actually make parts with carbon fiber. They're not as strong as carbon fiber, but they look just like carbon fiber. What you see is a lot of times, carbon fiber is not used for the reason for carbon fiber. It's used to make things look cool. That makes the BRP look cool, carbon fiber. What frustrates us is that carbon fiber sits right on top of our structural component that is actually part of the structure of that personal watercraft. That could be molded. We can mold that. If you did injection molding, high-pressure injection molding on large parts, you would be able to injection mold something like that. That's another area that we're looking as well. Unique differentiators.
I think when we look at it, lightweight, reducing total cost. When we talked about that rail data transmission, data signal system, the prior solution is what you see there on top. It's a concrete that requires 500 pounds, requires a crane to install it. You have to shut down the train track. Whereas our solution, you can see a person picking it up. It weighs 30 pounds. You can install it, maintain it. It's 10x faster and about 15% lower cost. The cost per foot is more, but the total cost is significantly less and 10x faster. High strength to weight. It's funny. This gentleman here has been with Yamaha for about 50 years. Whenever we do a new trial and test, we have to go and work with him.
He's 72 years old, and he uses a sledgehammer to smack every part of that hull all the way around, and it doesn't break. At least you pass his test. When you look at what we have, we got presses up to 5,500 tons. When you look at that, the one under the innovative material, that is one shot with our press. We can mold an entire boat hull with one shot, and we mold in all the features, all the engine mounts, fasteners. Everything gets molded in. When it gets to the customer, our goal is that it gets to the customer, all they do is bolt it in. There's no extra assembly. To give you a really, I think this is unique. When we work with BRP, I think we have a really good relationship where we're early in the design phase of BRP.
BRP has what's called a Switch. It's a mix between a personal watercraft and a pontoon boat. It has a steering wheel of a personal watercraft, but the platform of a pontoon boat. What you see in red there, that is fiber-reinforced composite. It's a DLFT with a fiberglass reinforced because that's where the engine gets mounted. It takes all the stress. What you see in gray is called structural foam, which is low-pressure injection molding. We also make that. We're able to combine a solution with both of those processes to where it's unique to us, unique to BRP, and nobody else can do it. It's a much lower cost. You could have made the whole thing out of what's in red, but that would have been more expensive because you're using all fiber reinforced.
You only use fiber reinforced where you need it, and only we can do that. I think that's a really, with our portfolio processes, that is a unique opportunity for us as far as when we talk about solution sales, being able to offer something that no one else can offer. Kind of some of the case studies, when you look at some of the vaults that are going in, so fiber optic vaults, usually when they're running fiber optics, they're going to run more fiber optics and they're going to put it in a vault. In case one line breaks down going down, they'll pull another line out of that vault and rerun it because you can't repair fiber optics. You have a lot of these vaults. Even a polymerized concrete weighs almost 100 pounds, whereas ours is 25 pounds.
One person can pick it up and install it, and you don't need a crane to do that. Significantly faster. Another one, when you look down at stormwater treatment, it would take a crane to install these pipes as you have. What you can do with ours, you can pick this up in the field. You can actually cut the hole out in the field and install that in the field itself. Again, significantly faster than what the competition is. When we start talking about what we can do in a mold and having our large molds and having the expertise in molding and control of the raw material, when you look at, we had done a, it's a step side for a truck. It was originally 43 pieces between all the fasteners, brackets, and you needed the metal plate in there for strength.
We were able to make that out of a fiber-reinforced polyethylene, polypropylene, with all the brackets and everything molded into the part itself. It was one part that snapped right into the vehicle. That's significant when you start looking at how many vehicles are making and how much labor is involved. That's really our focus, how do we partner, how do we give a technical solution, and then how do we provide value with our processes and our expertise. Down below, that same haul you saw earlier for the BRP with the guy standing next to it, you can see all the fasteners get molded in. Everything is automated in the mold, gets molded in, as well as all the engine mounts. Everything is there to just install and assemble when it gets to the customer. Next, we'll go into some financials. I'm going fast.
That's something you had to mount?
Yeah.
Okay, like Dave said, you know, everything we've done has led us to this point to invest for growth. Our capital allocation priorities are organic growth, M&A, return capital to shareholders, and maintaining a strong balance sheet.
I got to go back here?
Organic growth, like Dave said, we have a $25 million investment project for Volvo Mexico. Our target return on these types of investments is $14 million- $16 million pre-tax return, and we believe that this investment will be north of that. M&A, right now we're building our pipeline. We got real close to closing an acquisition in March of 2025. It fell through. Right now we're focused on building the pipeline, looking at tuck-in acquisitions, staying around the $10 million- $40 million size. We won't ever go above 2% or 2.5x leverage. The main point here is staying disciplined, making sure that our acquisitions are getting our return of 14%- 16% and not over-leveraging the company. Return capital to shareholders, right now we have $7.5 million of stock buyback authorized.
We've used roughly about $5 million of that, so we have $2.5 million left that will expire, I think, over the next year and a half. We anticipate that we'll buy enough shares to eliminate that amount, and we'll probably go back and renew. We will renew and ask for more shares from the board. Lastly, maintaining a strong balance sheet. Right now we have $40 million of cash on the books, $20 million of debt. Our accounts receivable is all current, and our AP covers our inventory. Our balance sheet is really strong, and we're poised to make bigger investments moving forward. Moving on to some selected financial data. Coming off the COVID peak for our sales, where power sports just went bananas, basically, in 2022 and 2023, and truck was extremely high during that, we have seen a dip in our sales over the last two years.
The most important thing here is we've fixed our margins, we've stabilized our margins, and we've actually increased our adjusted EBITDA as a percent of sales over the last two years. Our return on capital for the last two years achieved our targets of 14% to 16%. It has dipped for our trailing 12 months in June of 2025, but as sales come back, we believe that our return on capital employed will increase back into our targets. We also have between $50 million and $60 million of incremental sales left to launch over the next 18 months. Cash flows and our reinvestment over the last three years, our operating cash flows have been roughly about $90 million over the last three years, with sustaining CapEx being about 25% of that at $23 million and growth CapEx at $14 million.
That gives us free cash flows right around $52 million over the last three years. We have capacity in place to do roughly somewhere between $425 million- $475 million in sales. Long-term financial goals, we believe these are achievable in the next three to five years. Our $500 million of revenue, operating income in between 8%- 10%, and return on capital employed, like I said, of 14%- 16%. With that, any questions for Dave and I?
Yeah. Sorry.
Oh, you want to sum it up?
Yeah, I want to say one thing in summary. I think we are excited. I think that really the thing to take away is that all the work that we've done on the execution, we've gotten done. The two problems with Core when we started were cost was too high, price was too low. You got to do the cost before you do the price. We fixed the business, the execution. We got the operations in place. We've got the teams in place. We went after the pricing. We put all of our product pricing at the level that it needed to be. We didn't lose any customers other than Volvo, who we got back. Obviously, the pricing was too low. I think when we look at where we are today, we fixed the baseline of the business. We are investing for growth, and it's an exciting part to be.
This is why we did all the work to get here. No, we are under USMCA. Anything that we produce in Mexico that comes into the U.S. is under USMCA. Anything that's in Mexico that gets shipped to Mexico is never part of the tariff.
Any raw material cost increases that we do have, we do have pass-through in our contracts. We would just pass it through to our customers.
Have you been experiencing a significant amount of?
No.
Tyler was first.
A bunch of opportunity here to SMC lines there. To the extent that you're winning and sort of splitting the business in that area, where is that coming from? Who's losing that business? Why does Core Molding get to be there? Is there an opportunity then for any of those captive players like Jeld-Wen to eventually come to you for a portion or all?
Good question. We have really looked at the SMC market. In the past, we used SMC internally. We supplied ourselves in all of our locations, and we really didn't drive the capacity and the consistency as much as we should have. Now that we really have the time and the money, we're investing and we put in what's called a maturation room and a cold room. SMC is a living substance. It's curing as soon as you make it. You want to warm it. You cure it for about 24 hours till you get it right where you want it. We put it in a cold room. We actually have a building within our plant that's a cold room to cure it. We can ship out of the cold room. That's our competitive advantage, as well as our ability to make different formulations for SMC.
You could have SMC that's for lightweight, high strength, being able to formulate that. The competitors that we're looking at are only producing SMC. It's IDI and Molding Products, MP. What we're seeing now, we've talked with about 10 customers in this area. The lead times are very long. The consistency of the product is not there. They're talking eight weeks lead time. We got days, right, because we have it in a cold room. We can build it, put it in a cold room, and then we're able to ship it out of the cold room and have their capacity in days. I think one thing that does give us advantage on when we're selling SMC, we also know what everyone else is molding. It helps out with the acquisition pipeline and knowing what everyone else is doing there as well.
I think the other thing that I would add is because we make SMC and we mold SMC, we can go in and help the potential customers mold their product. We're specialists when it comes to molding. It's not easy. It's hard. We can help them engineer different ways to do charge patterns and stuff like that to better their process.
Sorry, Bill.
All right. The ATV skid plate business, how large is that?
It's about $8 million- $10 million.
$10 million, yeah, $10 million, one customer.
Annually.
One customer. Yeah, right now we have BRP. We're also talking with Yamaha and Polaris. They may have gone metal because it's quick and easy. When you start hearing gravel pinging against metal on the bottom of your vehicle, that's going to change. We've already passed certain requirements on energy absorption that we had to meet as far as impact test and piercing test. We validated all that to the requirements, the federal requirements. We're already validated in. That's a good example of if I look at the difference in companies, BRP is very progressive. They're going to look at, all right, what's the end goal? What's the best solution? They'll usually go for that. Sometimes other companies are what will work now and just get us by for this regulation to then figure it out later.
You showed the train track and the communication box along the line. My perception would be that the European market would be much larger than the U.S. market.
Yeah.
Is that, number one, is that accurate? Number two, is it even relevant, or is the transportation cost so great?
Yeah, good question. That product actually came out of the U.K. It was used in the U.K. first for trains. We find much more traction in actually installing the systems in Canada. The U.S. seems to say they're going to do it and then slows down in one thing or another. Most of our installations have been in Canada. We do have some big installations that are talking in the U.S. There's a San Antonio, Las Vegas, and then Las Vegas, LA that they're still working on. The Montreal installed, Toronto.
What's your perception as to why the U.S.?
Car companies make a lot of money, I would say. It's funny. You get into these and they're all in a rush. They wanted the quotes. They want to have all the answers. You wait in one thing or another. Canada actually moves pretty fast with installing systems. I assume in the U.S., once you install one, it'll go faster. All right.
You gave a few examples of prospective conversion from concrete to epoxide, and some examples of 90 pounds, 25 pounds, et cetera. Why hasn't that happened already? It seems the case that you provide seems pretty compelling to us sitting here who don't wear hard hats. What's the issue?
Yeah, I think it's just change. I mean, you're talking with a customer that may have done it this way for 50 years. What they have, they know works. They've already got a supply chain set up for it. You're really, it's the conversion of it and them making the decision to convert. I think it gains momentum. Once they get used to it and they see it, you start getting more and more. You see it in aerospace right now. Those bases were concrete. They went to some manual process. Now they're looking at SMC. Different industries go faster. I would say industrial and utilities is maybe a little slower just because what they have works, right? They start seeing the advantages. Xylem is a great example. We do a lot of work with Xylem, and they're all about composites. It's part of their business.
Yeah, convincing a customer to change is difficult. It takes a long time. It's difficult, and it takes a long time to fold those?
No, they were always composite. The trucks have been composite for about 25 years. It was just switching suppliers there. Sorry.
Going from concrete to these materials, we have trouble with expansion?
No, I'd say you have many more problems with that with concrete. Concrete, in the end, leaks. It'll crack, especially in the ground with thermal expansion and contraction or just installing it. Ours does not. Composites do not. You don't have a problem with that. A composite is already a compilation of different components, whereas the concrete they're using has maybe rebar in it or it's just straight concrete. You have many more problems. That's why in some of them, like the vaults, they polymerize them. They take a polymer, infuse it into the concrete so that when it does crack, it doesn't leak.
How far into the aerospace industrial market have you started to look? It seems like there's a location advantage in aerospace, actually, in the air location in Brownsville. The air location in Brownsville.
Yeah. Absolutely. I mean, what we see today is that's our first project, and it's with a big company down in Brownsville. I think they're trying us to see if that works, and we can do it at high volumes. Right now, they weren't able to meet the volumes and get those installed. That's a lot of times why they'll use traditional materials, right, because they can get it. For us, we designed the molds. We're now making it out of SMC, and they're looking at installing 60 of those a week. I had no idea that they would install 60 satellite stations with nine satellites in each a week. The satellite station, my guess, probably 10,000 of one of those little stations. That's another good thing. I think we were talking earlier. When you supply a roof on a truck, a roof is $2,500, right, $3,000 a roof.
Maybe it's $1,500 a hood. You're a big cost. You're $5,000 of their cost. That's a big cost. They scrutinize it. When you're $200 of a $10,000 product, it's a lot easier to get margin. Yeah, aerospace, I'd say we're just at the beginning. All right. Thank you, everyone.