Curtiss Wright Corp (CW) September 2026 Conference Transcript

Hi, good afternoon, everyone. I'm Christine Lewag, Morgan Stanley's Aerospace and Defense Analyst. Super excited to have you join us for our next session. We have Curtis Wright with Lynn Bamford, CEO and Chairman of Curtis Wright, and Chris Farkas, CFO. So 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.morgansanley.com forward slash research disclosures. If you have any questions, please reach out to your Morgan Stanley representative. I really don't know who goes to that website. But it keeps the lawyers employed. We support the lawyer industry. So with that, Lynn, Chris, maybe starting out capital allocation. Curtis Wright, you guys have been a historically acquisitive company, and you've gone through the ebbs and flows of deals that you did before, a pause and you're back to 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. So 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 risk uncertainty and they're outlined on our website. So 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. So if you are less familiar with Curtis Wright, to give some context to today's comments, I'd encourage you to go to our website CurtisWright.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, you know, wrapping up at the end of the year. And so, give you a good baseline and overview of the company. So, 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, you know, we look, you know, 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. And specialized aerospace components that really have differentiated IP and durability of revenue would be another place we would look. And so I think one of the things, as you pointed out, Curtis 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, you know, 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. And I think, you know, through our acquisitive history, we've really developed very good, strong processes in call to playbook, whatever, for how we go about approaching diligence and vetting forecasts and such. And with that, I think we do a really good job of bringing in companies that are going to meet financial targets within the company. And so 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. So we continue to look and exercise our diligence process, and we will find things to acquire. I feel confident about it.

And 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's going to be very hard to find one that you can instantly integrate into the business and meet Curtis Wright's 19% ROS target. And especially, you know, we don't measure EBITDA. We do it on a Roth 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, you know, strong cash flow generators and the ability to hit our ROC targets, which, you know, given some of the higher multiples that you're seeing in the market today, you may not be able to hit cost of capital by year three, but these are long-term investments, so we'll hit it by year five, but we'll be flexible. I think you're not going to hit every KPI every single time. To me, as a finance guy, it's 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.

And then I guess just hearkening back to the strategic fit, it's many things I imagine you can – we're looking to build out positions in our end markets. We're not looking to add a fourth leg to the company, but we really want companies that own their intellectual property. There's very good durability of the revenue streams, high strategic barriers, you know, companies that have good alignment to our culture and places, you know, companies that maybe can extend our customer reach or we can use our customer reach to extend for them. And so it's, you know, a lot of different things depending on which end mark you're looking at. But as Chris said, you know, we start there, and if they don't make the strategic fit, we don't go on to the financial fit, but they have to pass both.

That makes sense. So good luck. I hope you find what you're looking for. So with that, staying on capital allocation, you increase your share buyback by $100 million. I think now your new share of purchase authorization totals about $700 million, and 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?

So 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. But acquisitions for growth in our end markets is absolutely our strategic fit. And we just sort of talked about what those criterias are. And I look at the future for Curtis 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, so I agree with Len. Absolutely, the answer is no. I think the key for us is discipline, right? I mean, I think it's a disciplined capital allocation strategy. So we should take a look at what, you know, 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. dollars. Now, half of that went to organic investments and inorganic investments, and the other half of that went to returning capital to shareholders, and I think you can see in the stock price growth over the past few years a very, very good investment. Now, 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, you know, 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. We recognize the dynamics in the industry. But the thing that we see that, you know, 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. So, you know, we are absolutely a great buy right now.

I mean you see the stock price and this new buyback I can see 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.

So I mean I guess the next order is you know you see the administration, this administration has been vocal about different priority set that's important for the warfighter. Can you talk about the alignment of Curtis Wright's portfolio and these key priorities, and where opportunities do you see are most interesting?

Yeah. So, you know, obviously we've been in the defense industry and naval shipbuilding since the inception of the nuclear navy and defense electronics since the kind of birth of the COTS industry. And so we're longstanding players in these industries. And, you know, Naval shipbuilding, the budget has nearly doubled from 26 to 27. I mean, that's pretty amazing. And 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 CBN 82 long lead material funding. So these are all very good developments for Curtis Wright. And then across our defense electronics portfolio, you know, we have been in this industry for years. We have a global reach to where we sell our products. And, you know, whether it's aircraft modernization, you know, we announced the C-17 program with Boeing as one program that, you know, we can announce what we're doing. There are 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 rotocraft that has got a huge future for us to whether it's tactical communications, whether it's just so many different things of pushing electronics out to the warfighter and making the battlefield more advanced technologically. We play in many of those places. And then 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. I mean, it's a big priority for President Trump. But at the same time, the funding for Golden Dome for fiscal year 27 is uncertain. It was mostly funded out of the reconciliation budget, which looks unlikely. There are discussions of maybe folding some of it into the base budget. I guess with all this uncertainty and funding for Golden Dome, let's take a step back. Where do you see the program? Where is Curtis Wright positioned? And how do you think about that in terms of your core business versus optionality?

Yeah, so it's interesting because, you know, there's different opinions on the reconciliation. But, you know, a lot of, you know, 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, you know, defending the homeland. And, you know, as just mentioned, you know, 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. So some of those will come in their existing form and will, you know, 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, and whether that's counter UAVs, counter ballistic missiles, these are all areas where our technology is very relevant. And 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 Fabric 100 capabilities for the fastest interconnect that exists in the industry. So these are all things we have. and we can work with the defense industry to build these things out. And then our tactical communications equipment is critical for the networking. And personally, I think they're gonna find ways to put the important pieces that need developed and acquired into the budget one way or the other. And I think we're very well positioned to make more advanced technologies where they're gonna spend money in that way or to build out the existing platforms that it 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. And so, again, that's, you know, 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. And, again, these things are finding ways to be funded. So, you know, 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's super helpful. And, you know, maybe bringing to the 2026 outlook, you know, at the last earnings call, you've called about a flattish 3Q and then another recovery in 4Q, 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, and then also how much visibility do you have in the supply chain that gives you confidence that you would have that big 4Q?

Yeah, so I think when you're talking about confidence, and I'll just kind of step it up a level for those that are maybe less familiar with Curtis Wright. You know, we had a beat and raise in Q1. We had a beat and raise in Q2. So overall, we feel very comfortable with the guidance of the corporation and where we're headed. And if you've come to know us over the years, we do what we say we're 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, you know, it's very gratifying for Lynn and I to talk about things that actually come to fruition. And, you know, given the fact that last year There was a full-year continuing resolution. We had a government shutdown for 45 days. There's 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 NDA was signed and we got through this, we'd start to see order patterns resume to a more normal cadence. And, you know, 60 to 90 days later, we would start to see that uplift. And Q1 was a very solid order book. Q2 was a record order book. It was up 47% year over year. We're seeing another strong order book here in Q3, so very gratifying to be able to forecast that that's happening and where we are. But we also said that there would be some timing issues relative to the revenue recognition. And, you know, while the pipeline for defense electronics is incredibly healthy and the business is really doing great, it's just a matter of execution. So, you know, 4% to 6% increase in revenue guidance this year. We didn't increase it. It's just the time, the short time frame 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'll 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're incorporating today. We started placing advanced buys, knowing this was coming earlier this year. We've got D-pass ratings that were flowing down to suppliers. We're building healthier, stronger relationships with our suppliers. And we feel very well positioned. We've got the materials that we need for 2026, and we're 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. Cheswick, yeah. I've actually been there maybe 10 years ago. Maybe it's time for another trip. But, you know, $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, you know, reactor coolant, I mean, massive, massive, massive giant pump. No wonder it costs millions of dollars.

Good advertisement.

Well, I think I'm out of budget for a $500 million spend, But, you know, I'm sure others could build some factories like that for plants. But, you know, 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, Christine. 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, Curtis Wright funding, Marine Industrial Base funding from the Navy, and then state support from Pennsylvania. And it is, 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, 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. I mean, 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 Curtis 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. And we've increased our investment in CapEx pretty substantially over the past three years, 30% in 24, 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. And 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. So 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. So it's going very well.

So it's all pretty positive news. I guess, you know, Chris, you talked about higher investments, but also you're getting MID funding. Can you talk about the opportunity of, or both of you, to talk about the opportunity of Curtis Wright as a second source for the U.S. Navy and what your position is?

So if I, for those, the MID funding is maritime industrial-based 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 and you know I think it's it's great to take note that in 20 our 24 investor day we were at 15 million dollars of MIB funding and we're just under a hundred million dollars now and so that's that is a lot of money the government has sent our way to help us build for capacity and this has been across a variety of our our naval plants and often the thinking around you know with the government and the the handshake deal you'll make is that you'll invest in facilities and they'll help invest in the equipment and so 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 and 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. And so it's something that hopefully we'll be able to talk about in the near future. But, again, if you go back to that Investor Day briefing from 24, 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.

And would that be profitable growth?

We only grow when it's profitable. We don't know how to do anything else. No, I mean, our naval, you know, being very transparent, our naval business is, you know, not, even in the naval and power segment, it's some of the lower Roths 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, you know, develop a lot of fantastic capabilities that, you know, one of the things I think is, you know, Ben Curtis 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. And 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 and to subsea pumping. And so you have to think about it in totality of what we can do as a business based on some really outstanding engineering capabilities.

That's super helpful. I think that's a great segue to talk about the commercial part with the AP1000 and Westinghouse. So I know, you know, it wasn't part of your financial outlook, and, you know, 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? And where are we in terms of the discussion with Westinghouse on the order? And do you anticipate the U.S. coming through first, or is it Europe? What's the order of the order?

Yeah, so we still are anticipating an order for their initial AP1000 pumps in 2026, and I do realize exactly we're in the middle of September, and so that window is getting a little narrow, but we engage with Wessinghouse 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. And so this is not something we're just sitting and waiting for. We've 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. And this is very active and very transparent with Westinghouse. But, you know, we will get an order from Westinghouse. Westing will get an order from either one of the utilities or Poland or kind of the two, you know, nobody knows exactly, but they're kind of the two more likely places. And I think it's generally thought that a utility will be in front of Poland. But, you know, honestly, the IEA conference is going on right now, and Poland's making a lot of noise about really, you know, getting close to placing their order. So, for us, you know, we're going to build the same things. We're ready to take orders as those orders come, and it's pretty exciting times. You know, all things nuclear. You know, AP1000, obviously, you know, is the next big thing, but our work with SMRs just continues on, and we continue to build our partnerships there.

Great. I'd love an SMR question, but before that, maybe pivoting back to capacity, right? Because, you know, with your Pennsylvania facility that's 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's the capacity like, and what does that $80 million allow you to do?

So it definitely grows our footprint, and we very much are looking at our Navy backlog is outstanding right now, and so 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 so 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 really 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. And again, as we are considered more and more for second-source components on major platforms, that brings in new work. Now, not all that work goes to Cheswick. Some of that work goes out into our other plants, which is a good thing. But, yeah, the team is, you know, we have routine, we have monthly capacity plannings across, you know, the nuclear and how that ties into the Navy where the work is co-located.

That makes sense. And, you know, now on SMR. So you've announced, you know, you're working with leading SMR providers, including Westinghouse and Rolls-Royce. I guess, what's the update on this segment? How mature is the technology, and how close are we to kind of the commercialization, monetization part of SMR?

So, you know, I think it's one of the powerful investment theses with Curtis Wright is that if you see the nuclear, you know, 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 making, you know, challenging ourselves to have somewhere between 20 and $120 million of content across the six large SMR providers. And those are the ones we think of that are, you know, 300 megawatt or a little bit higher of content. And I think we will achieve that across the board. You know, if I take two to talk about that is, you know, had a lot of headlines and are really seem to be gaining traction. You know, we've been very public about our content with X Energy, that we're at the top end of that range. Exciting to see that they just got another billion dollars of funding from the U.S. government, which is, you know, just a great sign of, you know, the determination, you know, to help them, you know, be able to deliver their first ARDP plant down to Dow in Texas. And so, you know, it's exciting that, you know, we started talking earlier this year. we've really moved out of a design phase that we weren't working from them since 2020, 2021 but really doing clean sheet design work and now we are in the prototyping phase so this is 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's a very exciting one. Another partnership that we're 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've announced a few wins with them. We have a lot of things in the work and I think we'll have more announcements coming in the near future and they're really building out their footprint across Europe right now but I don't think they will stop there and so if you think of those two sides, we've really positioned ourselves well to grab that growth that will go through the middle of this century and that's not to say not the other ones you know the you know we'll be somewhere between the 20 and the 120 you know the middle probably with TerraPower and NuScale maybe slightly on the lower end with GE and then you know with Westinghouse you know our content on AP1000 you know we think will be north of 150 million dollars by the time we have not just the RCPs, but other plant equipment that Westinghouse has selected, and the AP300 should be half of whatever that content is. And so it's just, it's a lot of business that is just going to layer on top of each other, you know, across Curtis Wright, you know, for decades and decades.

That's super helpful. Now, now, you know, we probably have time to take a few audience questions. If you have a question, please raise your hand, and we'll bring you a mic. And don't be shy. I'll just call out names.

Jim, do you have a question?

As we get a mic to Justin, please.

Justin Lane, Morgan Stanley. You were talking, Lynn, earlier about taking one technology developed in one area and porting it to another. So 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.

So we continue to do our work. with Petrobras. We've delivered a pump to Shell. We're hoping to think it may be installed yet this year, and so a couple new customers along that we haven't gone public with yet that are seeing how the technology plays out, but we're really anxious to get that first pump installed, that Shell is really kind of 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 I think we're going to, you know, have a significant milestone with them in, you know, hopefully the next six months.

Other questions? You know, so, Christina, you said it yourself earlier, beat and raise in 1Q, beat and raise in 2Q. And then you're saying, oh, flat, 3Q. I mean, come on. So I guess my question is for the variable part. You know, what are the variables you're watching that, you know, 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, so there's a lot of positive things that are kind of going on across the business right now. And I think that you can just kind of go down the list of where we are. I mean, the work that we're doing on, you know, next generation aircraft, whether that's, you know, supporting the U.S. military or, you know, advancing commercial technologies on current aircraft in the A&I segment. I mean, the momentum there just continues to improve. So, you know, we're seeing some strength there. I think as you step back and look at general industrial within the A&I segment, I mean, it's been flat for the last two years while we've been, you know, growing at like 8% to 9%. So flat was kind of, you know, great for that industry over the past two years, but the order book is up 21% year-to-date, and it's a relatively short-cycle business. You know, we just increased our guidance from flat to low single digits. And I think as you step back and you look at what's happening there, you know, we're listening to our customers, they're saying good things, we're following ACT, we're on-highway research, we're following off-highway research, all of these things are kind of coming together at once. So we're very optimistic about where we're 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. You know, we've talked a lot about Navy today, right? And the backlog is very strong. And the key there is, you know, can you continue to accelerate backlog through production? So could there be some additional opportunity in Navy? Sure, there could be. You know, the commercial nuclear story is very, very strong. That opportunity continues to show itself to investors. But as you go through, you know, the rest of the year here, I think we're extremely well positioned. You know, we well hit 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. And Lynn, the opportunities that we're seeing in commercial nuclear power was really a technology harvest from the U.S. naval work you were doing in reactor coolant pumps. And then 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 may want to just pick a couple out. But, you know, 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, like, that is a core capability that, you know, we have taken now and sold into two end markets. Interestingly, our electromechanical actuation equipment that's on the IFPC that is, we talked about it briefly just a few minutes ago, you know, that was a capability really developed for a commercial end market that we have taken to the military market. and it has been performed so well that it's leading to other opportunities into the military market. And 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 shop from the mountaintops just because, you know, 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 that we're at the time, but is, you know, our valve technologies. You know, we have a really strong portfolio of valves and valve technologies. And we're very much able to take those, you know, 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. This concludes our session with Curtis Wright. Thank you for joining us this afternoon.

Thank you.