Hi, good afternoon, everyone. I'm Kristine Liwag, Morgan Stanley's Aerospace and Defense Analyst. Super excited to have you join us for our next session. We have Curtiss-Wright with Lynn Bamford, CEO and Chairman of Curtiss-Wright, and Chris Farkas, CFO. What an exciting time. Before we get started, I'm going to read our standard disclosures. For important disclosures, please see the Morgan Stanley Research Disclosure website at www.morganstanley.com/researchdisclosures. If you have any questions, please reach out to your Morgan Stanley representative.
Okay.
I really don't know who goes to that website.
Yeah.
It keeps the lawyers employed.
Yes.
We support the lawyer industry. With that, Lynn, Chris, maybe starting out, capital allocation. Curtiss-Wright, you guys have been historically acquisitive company, and you've gone through the ebbs and flows of deals that you did before, a pause, and you're back in the pivot to growth, where you've been more active in the acquisition front. More recently, you've done smaller deals in the commercial nuclear realm. Can you talk about what that M&A pipeline is currently? I think in the last earnings call, you've suggested you were in due diligence. Can you talk about what's happening in the M&A space?
Absolutely, and I first want to say thank you for inviting us to you, Justin, and to Morgan Stanley. I also have a disclaimer statement that today's remarks may contain forward-looking statements. They come with risks, uncertainties, and they're outlined on our website. Now we've both done our exception statement. Again, I know there's many familiar faces here, but I also see a lot of new faces. If you are less familiar with Curtiss-Wright, to give some context to today's comments, I'd encourage you to go to our website, curtisswright.com, and look in the investor relations section.
You can look at our Q2 earnings material, some other presentations in our 2024 Investor Day that set out our three-year targets that we're wrapping up at the end of the year, and so give you a good baseline and overview of the company. First, just starting out talking about the pipeline. The pipeline has been strong. We have looked at quite a few companies over the past 18 months, and again, we're a diversified company, which gives us the opportunity to look at various different end markets.
We're pretty quick to say one of our top priorities is to add on to our defense electronics capability. It's our highest margin segment. We know how to buy business in that segment and bring them in and have them reap the benefits of being part of that bigger team. Major naval propulsion and safety systems is another priority where we're always looking. Commercial nuclear remains an area we look. There's not nearly as many targets in that space, but it is an area we look.
Specialized aerospace components that really have differentiated IP and durability of revenue would be another place we would look. I think one of the things, as you pointed out, Curtiss-Wright has had M&A as our top priority for our use of our capital, and it absolutely remains there. But as we very consistently say, we are looking for a strategic and a financial fit and are willing to walk away from properties if they do not have both of those characteristics.
I think through our acquisitive history, we've really developed very good, strong processes. You can call it a playbook, whatever, for how we go about approaching diligence and vetting forecasts and such. With that, I think we do a really good job of bringing in companies that are going to meet financial targets within the company. I'm really proud of what the team does.
We've walked away from a handful of properties over the past 18 months, as I just said, where the willingness of others to pay very, very high multiples, up into the 20s on forward-looking EBITDA, is just not an area where we're thinking we'll be willing to go. You never put absolute limits on things, but they just wouldn't have made financial sense. We continue to look and exercise our diligence process, and we will find things to acquire. I feel confident about it.
Lynn, with the strategic and financial targets, can you just give us a little bit more color on what those thresholds are?
Sure. Maybe Chris can talk about the financial targets.
Sure. I think as you take a look across the business, it is going to be very hard to find one that you can instantly integrate into the business and meet Curtiss-Wright's 19% ROS target. Especially, we do not measure EBITDA. We do it on a raw basis, so we cover the depreciation and amortization when we bring businesses in. But it has to be able to accrete to that in a relatively short period of time.
We want businesses that are going to be also accretive to the top-line growth and strong cash flow generators and the ability to hit our ROC targets, which, given some of the higher multiples that you are seeing in the market today, you may not be able to hit cost to capital by year three, but these are long-term investments, so we will hit it by year five. But we will be flexible. I think you are not going to hit every KPI every single time. To me, as a finance guy, it is strategic fit, strategic fit, strategic fit, financials. But we do take a lot of time and care to make sure that that alignment is there.
I guess just hearkening back to the strategic fit, it is many things I imagine you can. We are looking to build out positions in our end markets. We are not looking to add a fourth leg to the company. We really want companies that own their intellectual property. There is very good durability of the revenue streams, high strategic barriers, companies that have good alignment to our culture, and places, companies that maybe can extend our customer reach, or we can use our customer reach to extend for them. It is a lot of different things depending on which end mark you are looking at. As Chris said, we start there, and if they do not make the strategic fit, we do not go on to the financial fit. They have to pass both.
That makes sense. Good luck. I hope you find what you are looking for.
We will.
With that, staying on capital allocation, you increased your share buyback by $100 million. I think now your new share repurchase authorization totals about $700 million.
That's right.
You're on pace for $460 million in buyback this year. Pretty much around the same level as your record year, last year, of the buybacks. Can you talk about what's driving this incremental spend, and also, has there been a change in your strategic priority where buybacks is now more higher up on the list?
I'd just start out by talking about the strategic priorities and then turn it over to Chris. But the strategic priorities have definitely not changed, and I see we have bought back a lot of stock. That is right there in plain sight. Acquisitions for growth in our end markets is absolutely our strategic fit, and we just sort of talked about what those criteria are. I look at the future for Curtiss-Wright and feel so confident in where we're taking this company, that we're not going to push the limits on an acquisition that could be harmful to the value I know we can create through our shareholders with the investments we're making in ourselves and the growth that we have before us.
Yeah. I agree with Lynn. Absolutely, the answer is no. I think the key for us is discipline. I think it's a disciplined capital allocation strategy. If you take a look at we're generating very, very strong cash flow, and if you take a look at how much capital we've deployed since 2021 through 2025 is $2.5 billion. Half of that went to organic investments and inorganic investments, and the other half of that went to returning capital to shareholders. I think you can see in the stock price growth over the past few years, a very, very good investment.
More recently, the Board approved that $700 million of additional authorization, and we saw some opportunity here in the market in the month of August, and now we've launched another $100 million plan here, which is going to extend through October. But we look at everything. This isn't really just a cash dump.
We'll take a look at the valuation. We understand where we stand relative to other mid-teens earnings compounders who recognize the dynamics in the industry. The thing that we see that we don't share, because we don't typically guide more than one year unless we're at an Investor Day, is that tremendous growth in earnings that's ahead of us. We are absolutely a great buy right now.
You see the stock price, and this new buyback, I could see that the confidence that you're signaling is clear.
Yeah, I'm sure we're going to touch on it in future questions, that we're just so well-positioned in so many of our end markets and the technologies that we bring, but I'll let you ask questions about those in the order you choose.
Sounds good. I guess the next order is, you see the administration, this administration, has been vocal about different priority set that's important for the war fighter. Can you talk about the alignment of Curtiss-Wright's portfolio and these key priorities, and where opportunities do you see are most interesting?
Yeah. So obviously we've been in the defense industry and naval shipbuilding since the inception of the nuclear navy and defense electronics since the birth of the COTS industry, so we're longstanding players in these industries. In naval shipbuilding, the budget has nearly doubled from 2026- 2027. That's pretty amazing. We're aligned across all the major platforms. They're trying to get to a rhythm of two Virginia and one Columbia.
That's great for us. We have major content on each of those platforms. They're moving forward with the CVN 82 long-lead material funding. So these are all very good developments for Curtiss-Wright. Across our defense electronics portfolio, we have been in this industry for years. We have a global reach to where we sell our products. Whether it's aircraft modernization, we announced the C-17 program with Boeing. There's one program that we can announce what we're doing.
There's so many times we win things that we're not able to announce what we're doing, whether it's that, an advanced threat detection system that will go across multiple rotorcraft that has got a huge future for us too, whether it's tactical communications, whether it's just so many different things of pushing electronics out to the war fighter and making the battlefield more advanced technology. We play in many of those places. That's not to mention having a great reach for Golden Dome, which is obviously another priority.
So I think that's a great segue. Golden Dome, there's been a lot of discussion about the project. It's a big priority for President Trump, but at the same time, the funding for Golden Dome for fiscal year 2027 is uncertain. It was mostly funded out of the reconciliation budget.
Yep.
Which looks unlikely. There are discussions of maybe folding some of it into the base budget. I guess with all this uncertainty on funding for Golden Dome, let's take a step back. Where do you see the program? Where is Curtiss-Wright positioned, and how do you think about that in terms of your core business versus optionality?
Yeah. So it's interesting because there's different opinions on the reconciliation. Golden Dome is essentially taking a lot of existing systems, either using them as they are, upgrading and networking them together to make a unified front for defending the homeland. As just mentioned, we've been in the COTS industry since its inception. We are on so many of the things that will be part of the buildup of Golden Dome. Some of those will come in their existing form and will participate in that way, whether it's on the sensor side to look for threats coming in or effectors to look for countermeasures to take action, whether that's counter UAVs, counter ballistic missiles.
These are all areas where our technology is very relevant. Things like our NVIDIA Blackwell product that we brought to market last year are all critical pieces for when you think of the time and the speed and the decision-making, these are all critical capabilities. That and our Fabric100 capabilities for the fastest interconnect that exists in the industry. These are all things we have, and we can work with the defense industry to build these things out.
Our tactical communications equipment is critical for the networking. Personally, I think they're going to find ways to put the important pieces that need developed and acquired into the budget one way or the other. I think we're very well-positioned to make more advanced technologies where they're going to spend money in that way or to build out the existing platforms that will build into the Golden Dome.
Great. So it sounds like you're very bullish on the Golden Dome?
Yes, very much. One other aspect of the Golden Dome that hasn't come up yet is one part that is already being well-funded, and again, the IFPC program where we do the electromechanical actuation, we just announced a $40 million award at the end of August in that. Again, that has been fielded in Guam, is going very well. That program is going to lead to the follow-on CAML program, which is another multi-domain launcher. Again, these things are finding ways to be funded. The reconciliation, that money in out, I believe the pull for this equipment is so strong that it's going to find its way in the defense budgets.
That is super helpful. Maybe bringing to the 2026 outlook, at the last earnings call, you called about a flattish Q3 and then another recovery in Q4, and some of this is, most of it, I guess, a key variable is defense electronics. Can you walk us through your confidence level about that level setting of that cadence? Also, how much visibility do you have in the supply chain that gives you confidence that you would have that big Q4 upturn?
Yeah. I think when you are talking about confidence, and I will just kind of step it up a level for those that are maybe less familiar with Curtiss-Wright. We had a beat and raise in Q1, and we had a beat and raise in Q2. So overall, we feel very comfortable with the guidance of the corporation and where we are headed, and if you have come to know us over the years, we do what we say we are going to do. So, on the second quarter call, we did talk a little bit about defense electronics and some flatness in the revenue between Q2 and Q3.
But if I go back a little bit further, it is very gratifying for Lynn and I to talk about things that actually come to fruition and given the fact that last year was a full-year continuing resolution, we had a government shutdown for 45 days. There has been changes to the PMO offices. A lot of confusion last year. But what we said in the fourth quarter was that as soon as the NDAA was signed and we got through this, we would start to see order patterns resume to a more normal cadence and 60- 90 days later, we would start to see that uplift.
Q1 was a very solid order book. Q2 was a record order book. It was up 47% year-over-year. We are seeing another strong order book here in Q3, so very gratifying to be able to forecast that that is happening and where we are. But we also said that there would be some timing issues relative to the revenue recognition. While the pipeline for defense electronics is incredibly healthy and the business is really doing great, it is just a matter of execution.
So 4%-6% increase in revenue guidance this year. We did not increase it. It is just the short timeframe that we have to turn this around. Now when it comes to the supply chain, yeah, most manufacturers that participate in our space are facing problems with maybe memory and processors and things like that. But I will tell you, when we went through this back in 2022, when this issue was more systemic through the industry, and wider scale in nature, the team learned a lot.
A lot of best practices that we are incorporating today. We started placing advance buys knowing this was coming earlier this year. We have got DPAS ratings that we are flowing down to suppliers. We are building healthier, stronger relationships with our suppliers. We feel very well positioned. We have got the materials that we need for 2026, and we are working on 2027. Credit to the team.
Wonderful. You recently announced your $80 million investment in your Cheswick, Pennsylvania, I think that's how you pronounce it.
Yes. Cheswick. Yeah.
I've actually been there maybe 10 years ago. Maybe it's time for another trip.
Oh, wow. Yeah.
But $80 million in investment. Can you give us more color on, and by the way, on a separate note, that's the biggest pump I've ever seen in my entire life. I thought Reactor Coolant. I mean, this massive, massive giant pump. No wonder it costs millions of dollars.
That's good advertisement.
Well, I think I'm out of budget for a $500 million spend, but I'm sure others could build some factories like that for plants. But with the $80 million expansion of Cheswick, Pennsylvania, can you talk about what's coloring that? I mean, that facility supports both the U.S. Navy but also commercial nuclear power. Any sort of coloring what that investment provides? And also taking a step back, how should we think about growth CapEx in general?
Okay. So yeah, thanks for pointing that out, Kristine. Back in July, we posted a press release online that we were making an $80 million investment in our Cheswick, Pennsylvania facility. To be funded through, in ranked order, Curtiss-Wright funding, Maritime Industrial Base funding from the Navy, and then state support from Pennsylvania. And it's an investment in the facilities to expand for naval growth that we're facing, and there's so much work on the naval side of the business right now. It's very exciting. And then also to prepare for what's coming here in SMR production, and then also the AP1000.
I think if you step back and look at this, it's going to create 150 additional jobs over the next three years in that area, and it's really a reflection of our commitment to the community and the workforce that we're going to be a critical supplier in this industry for decades. This is something that's really long-term in nature when you put this much money into a facility, and it's a very strong operating facility.
You step back and look at Curtiss-Wright, we've always been very, I don't want to say frugal, but very critical with our use of capital and how we deploy that. We've increased our investment in CapEx pretty substantially over the past three years, 30% in 2024, 50% this last year, another 30% this year. We're providing a great return on invested capital for our investors.
This is a sign and a statement that we have growth that's coming ahead, and profitable growth that's absolutely going to cover these investments that we have. On top of that, it's very gratifying to be in our position and say, while we're increasing that CapEx, we're also increasing free cash flow. We're not saying, "Hey, we're going to go invest, and you guys have to slow down with what you can expect in terms of capital allocation." We're doing both. It's going very well.
It's all pretty positive news. I guess, Chris, you talked about higher investments, but also you're getting MIB funding. Can you talk about the opportunity of, or both of you could talk about the opportunity of Curtiss-Wright as a second source for the U.S. Navy and what your position is?
For those, the MIB funding is Maritime Industrial Base funding, if anybody doesn't know that term, and it's money that the government will invest, usually in a partnership into industry to help them grow to prepare for future capacity needs. I think it's great to take note that in our 2024 Investor Day, we were at $15 million of MIB funding, and we're just under $100 million now. That is a lot of money the government has sent our way to help us build for capacity.
This has been across a variety of our naval plants. Often the thinking around with the government and the handshake deal you'll make is that you'll invest in facilities and they'll help invest in the equipment. That's a lot of how this has been being balanced as we go forward. But when you think of $100 million or close to $100 million of investment, that is both to grow current content, ramp, expand, repair capabilities, and take on some second source work. We're not at liberty to say what that is at this time, but it's meaningful content on existing naval platforms that will really grow what our ship set content is. It's something that hopefully we'll be able to talk about in the near future.
Mmh.
But again, if you go back to that Investor Day briefing from 2024, we lay out the major naval platforms and what our ship set content is, and I think we'll be able to move the needle on some of those numbers.
Would that be profitable growth?
We only grow when it's profitable.
We don't know how to do anything else.
No. Being very transparent, our naval business, even in the naval and power segment, it's some of the lower ROS work, but it's very cash flow positive, and it's important work to us. We're very proud of the work we do for the U.S. Navy and develop a lot of fantastic capabilities that one of the things I think has been Curtiss-Wright's strengths over the years is we have a core capability we develop for one industry, and then we take it into other markets.
Our core capability of the Reactor Coolant Pumps as the example, was developed for the nuclear Navy. We've taken that same technology to commercial nuclear into subsea pumping. You have to think about it in totality of what we can do as a business based on some really outstanding engineering capabilities.
Yeah, super helpful. I think that's a great segue to talk about the commercial part with the AP1000 and Westinghouse. I know it wasn't part of your financial outlook and you're hoping you wouldn't get peppered with questions on this since it's not in your outlook, but here we are. Do you still expect potentially 2026 as an order year? Where are we in terms of the discussion with Westinghouse on the order? Do you anticipate the U.S. coming through first, or is it Europe? What's the order of the order?
Order of the order.
Order.
Yeah. We still are anticipating an order for their initial AP1000 pumps in 2026. I do realize, we are in the middle of September, and that window is getting a little narrow. But we engage with Westinghouse very actively, multiple times a week, if not daily, and have gone through extensive capacity planning with them, preparations, a lot of advanced negotiations on the structure of orders, and other things associated with that. This is not something we are just sitting and waiting for.
We have been working with our supply chain for the past two years to help them be ready, so when we get an order, we can flow orders to them. This is very active and very transparent with Westinghouse. But we will get an order from Westinghouse will get an order from either one of the utilities or Poland are the two. Nobody knows exactly, but they are the two more likely places, and I think it is generally thought that a utility will be in front of Poland.
But honestly, the IAEA conference is going on right now, and Poland is making a lot of noise about really getting close to placing their order. So, for us, we are going to build the same things. We are ready to take orders as those orders come, and it is pretty exciting times. All things nuclear, AP1000, obviously, is the next big thing, but our work with SMRs just continues on, and we continue to build our partnerships there.
Great. I would love an SMR question, but before that, maybe pivoting back to capacity. Because with your Pennsylvania facility, that is for the Navy and commercial RCPs too, for Westinghouse. What does the $80 million capture? Are you able to meet the increase in submarine build that the U.S. Navy wants, plus these opportunities in commercial nuclear power? What is the capacity like, and what does that $80 million allow you to do?
It definitely grows our footprint, and we very much are looking at our Navy backlog is outstanding right now, and it's definitely to support both that growth. Subsea pumping, which we're anticipating is going to start moving into some higher production rates, and it's also to support that. The good thing is we're very flexible into exactly how that space is going to be used and what we will do with it. But it's part of a multifaceted capacity plan.
When I think of the Cheswick facility, that is not the last thing we're going to announce there for being able to expand for storage and manufacturing space. Again, as we are considered more and more for second source components on major platforms, that brings in new work. Not all that work goes to Cheswick. Some of that work goes out into our other plants, which is a good thing. But the team, we have monthly capacity plannings across the nuclear and how that ties into the Navy, where the work is co-located.
That makes sense. Now on SMR.
Go ahead.
You have announced you are working with leading SMR providers, including Westinghouse and Rolls-Royce. I guess, what is the update on this segment? How mature is the technology, and how close are we to the commercialization, monetization part of SMR?
I think it is one of the powerful investment theses with Curtiss-Wright is that if you see the nuclear energy production as becoming more and more important here in the U.S. and globally, we really have a reach across the existing fleet that is operating and doing service work on it, life extensions, restarting some plants, the build-out of the AP1000s and then SMRs. And we really have targeted challenging ourselves to have somewhere between $20 million and $120 million of content across the six large SMR providers.
And those are the ones we think of that are 300 MW, or a little bit higher of content. And I think we will achieve that across the board. If I take two to talk about that had a lot of headlines and really seem to be gaining traction. We have been very public about our content with X-energy, that we are at the top end of that range. Exciting to see that they just got another $1 billion of funding from the U.S. government, which is just a great sign of the determination to help them be able to deliver their first ARDP plant down to Dow in Texas.
And so, it is exciting that we started talking earlier this year. We have really moved out of a design phase. We have been working from them since 2020- 2021, but really doing clean sheet design work, and now we are in the prototyping phase. So they are moving to be able to have test facilities, put things on test loops, and be able to build that first plant for Dow. And so that is a very exciting one. Another partnership that we are very excited about that I feel will put us at a revenue range in that top-end range is our partnership with Rolls-Royce.
And we have announced a few wins with them. We have a lot of things in the work, and I think we will have more announcements coming in the near future. And they are really building out their footprint across Europe right now, but I do not think they will stop there. If you think of those two sides, we have really positioned ourselves well to grab that growth that will go through the middle of this century. And that is not to say not the other ones.
We will be somewhere between the $20 million and the $120 million, the middle probably with TerraPower and NuScale, maybe slightly on the lower end with GE. With Westinghouse, our content on AP1000 we think will be north of $150 million by the time we have not just the RCPs but other plant equipment that Westinghouse has selected. The AP300 should be half of whatever that content is. It is a lot of business that is just going to layer on top of each other across Curtiss-Wright for decades and decades.
That is super helpful. Now, we probably have time to take a few audience questions. If you have a question, please raise your hand and we will bring you a mic, and do not be shy. I will just call out names.
Jim, do you have a question?
Yeah. Justin. As we get a mic to Justin, please.
Thanks. Justin Lang, Morgan Stanley. You were talking, Lynn, earlier about taking one technology developed in one area and porting it to another. I remember back in your Investor Day, a lot of talk about subsea pumps and the prospects there. I was wondering if you could give us an update on that front and what to expect for the next year or two. Thanks.
Yeah. We continue to do our work with Petrobras. We have delivered a pump to Shell. We are hoping it may be installed yet this year. A couple of new customers along that we have not gone public with yet that are seeing how the technology plays out, but we are really anxious to get that first pump installed. Shell is really a technology leader in the industry. In this industry, a lot of people, a lot of the different providers watch what Shell does as kind of the gold standard for how to go forward, and I think we are going to have a significant milestone with them in hopefully the next six months.
Other questions? Chris, you said it yourself earlier, beat and raise in 1Q, beat and raise in 2Q.
Yeah.
You are saying, oh, flat 3Q. I mean, come on.
Well-
My question is for the variable part. What are the variables you are watching that could potentially give you that beat and raise again in 3Q and another beat and raise in 4Q? What are those moving pieces? What milestones are you monitoring that could get us there?
Yeah. There is a lot of positive things that are kind of going on across the business right now, and I think that you can just go down the list of where we are. I mean, the work that we are doing on next-generation aircraft, whether that is supporting the U.S. military or advancing commercial technologies on current aircraft in the A&I segment, I mean, the momentum there just continues to improve. So, we are seeing some strength there.
I think as you step back and look at general industrial within the A&I segment, I mean, it has been flat for the last two years while we have been growing at like 8%-9%. So, flat was kind of great for that industry over the past two years, but the order book is up 21% year- to- date, and it is a relatively short cycle business. We just increased our guidance from flat to low single digits, and I think as you step back and you look at what is happening there, we are listening to our customers. They are saying good things. We are following ACT .
We are on highway research. We are following off-highway research. All of these things are kind of coming together at once. So we are very optimistic about where we are headed as we approach 2027. The question is, did some of that convert into additional opportunity here, given the short cycle nature of the business? Perhaps. We have talked a lot about Navy today, right? And the backlog is very strong. And the key there is, can you continue to accelerate backlog through production? So could there be some additional opportunity in Navy?
Sure, there could be. The commercial nuclear story is very, very strong. That opportunity continues to show itself to investors. But as you go through the rest of the year here, I think we're extremely well-positioned. We love that our defense electronics numbers and we just have a lot of confidence in not only where we are here in 2026, but the positioning entering into 2027.
Great. Lynn, the opportunities that we're seeing commercial nuclear power was really a technology harvest from the U.S. Naval work you were doing in Reactor Coolant Pumps, and that also then seeded subsea pumps and SMRs. Are there other areas that you're looking at in your technology-rich portfolio where there could be avenues in the industrial world that gives you another layer to monetize?
Yeah, it's a great question, and there's a handful of them around the company. I mean, we'll just pick a couple out, but we've talked about our flight data recorder capability. That's one where we really developed that capability for a military customer and now have taken it to a commercial customer. So it goes both ways.
But that is a core capability that we have taken now and sold into two end markets. Interestingly, our electromechanical actuation equipment that's on the IFPC that we talked about briefly just a few minutes ago, that was a capability really developed for a commercial end market that we have taken to the military market, and it has performed so well that it's leading to other opportunities into the military market.
So there's other places in defense electronics where we have electronics developed for the military that we can then take into some side markets that I might not be very specific about yet, but maybe things more associated with law enforcement and things along those lines or other three-letter agencies. So there's just a lot of opportunities that we're able to do that in, and some we don't shout from the mountaintops just because we have things in work. But it's very much part and parcel with who we are as a business.
I mean, another one, just one other I might mention, then we're at the time, but is our valve technologies. We have a really strong portfolio of valves and valve technologies, and we're very much able to take those across process markets of various forms and then into the nuclear market. So kind of getting one example out of each of the three segments.
Well, thank you very much, Lynn. Thank you very much, Chris.
Yeah, thanks.
This concludes our session on Curtiss-Wright. Thank you for joining us this afternoon. Thank you.