John Godyn

Ed said capacity will adapt to fuel and demand, likely tilting international, but gave no growth range.

Joe said Delta will keep investing in Seattle capacity and premium products; Ed rejected a battle-for-Seattle framing.

Edward framed the results as consistent with the multi-year decommoditization strategy and argued the consistency and alignment make it durable.

Ed acknowledged the dynamic environment with fuel as the biggest decision variable. Joe specified targeting off-peak, edge-of-day, and red-eye flying which is 15-20% less valuable on a unit revenue basis. Ed added the best fuel recapture is not purchasing the fuel if the flying isn't profitable.

Ed confirmed strategic fleet decisions are on the table with some retirement decisions possibly being pulled forward, but said it's too early to announce a new strategic direction.

Glen attributed the corporate acceleration primarily to the broader market recovering, with Delta at all-time high market share as a gradual year-over-year accumulation. Joe Esposito added the corporate environment is optimistic about future travel plans.

Ed said current momentum, if sustained, supports the guidance range. But cautioned it's only the second week of January and last year's volatility is a reminder to maintain some caution. Glen added the main cabin hasn't moved yet, and its inflection would be the driver to the high end.

Danny credited supplier visibility into production plans rather than commenting on peers, and Phebe tied it to order momentum.

Phebe said CRs are manageable absent extreme duration and pointed to Mission Systems' transformation plus GDIT's qualified pipeline.

Danny detailed transition period for combat vehicles with lower volumes on current tanks and Stryker but strong RDT&E support for M13 and next-gen programs. Technologies aligned in cyber, space, and mission systems.

Danny said GD is being cautious on buybacks in the current environment, only acquiring shares to cover dilution. Remains committed to dividends with 29 consecutive years of increases.

Confirmed munitions demand signals manifesting in contracts with stores and inventories low requiring replacement, business typically runs 14-15% margins driven by operating leverage and learning curve cost control

Novakovic stated labor is not a problem, acknowledged some suppliers have ramped more successfully than others with capacity and throughput constraints, but quality remains good and suppliers are investing in capacity expansion

CEO pointed to backlog quality and Oshkosh demand but explicitly withheld model-level delivery timing.

CEO answered with specific installed-base evidence and named the V-280, V-247 and X-76 programs as positioning proof.

Atherton said no material impact observed from the conflict. Higher oil prices have both positive and negative correlations across the portfolio, positive for aviation and helicopter demand historically. Defense portfolio broadly supported by increased budget environment.

Atherton highlighted Sentinel/hypersonics, XM-30 and Marine Corps Armed Reconnaissance Vehicle, MV-75 acceleration to full rate, and Ship-to-Shore as key leverage points across the defense portfolio in a higher budget environment.

Atherton identified space as a key growth area for Textron, either with existing assets or through acquisitions. DoD leaning into space aligns with the company's thermal/hypersonic capabilities.

Kirby argued cost harmonization forces rational pricing regardless of individual carriers, plus brand-loyalty insulation.

Andrew surprised that international pass-through stronger than domestic. Changes in overseas pricing behavior unexpected. Mike noted foreign carrier Brent hedges don't cover crack spread widening, proving hedging is poor policy.

Andrew confirmed not counting on other airlines. Managing own capacity to achieve financial targets and double-digit margin next year independent of industry actions.

Scott outlined end state: ULCCs shrink to big leisure niche, 2 brand-loyal airlines (game is over), rest find profitable non-hub networks. Declined to discuss M&A. Whether consolidation helps or not, structure is inevitable.

CFO sized BDS at low single-digit billions of cash by end of decade but said BGS would not be a large incremental contributor, keeping the bulk at BCA.

Malave provided clear BCA margin trajectory: sequential improvement through 2026, turning positive by mid-2027. Dependent on delivery volumes and cost base extensions from well-priced backlog.

Malave said $10B is very attainable and potential supports above $10B. Requires certification completions, BCA rate ramps, BDS margin improvement, and continued BGS performance.

Culp defended the April decision to hold guidance amid uncertainty and pointed to demand resilience since.

Ghai addressed margin concern directly: services drop-through healthy with Q1 service margins up YoY, OE mix dilution is the real headwind. LEAP margins approaching CES levels by 2028 and 9X losses peak by 2028 support future expansion.

Larry cited Delta and United speaking confidently about 2026, $190B backlog, LEAP share of cycles increasing, expanded workscopes, and pricing. Rahul added spare parts delinquency ended 2025 up 50% over 2024, 85% of Q1 spare parts already in backlog.