Potential Sale of VACCO Business
Q: Have you resolved issues in the space business, and what are the prospects?
A: We've made steady progress on our troubled fixed-price development contracts, with some now behind us and product deliveries starting. Although some work remains, we've adjusted our Estimated Actual Costs accordingly. After a deep review, we concluded that splitting the business isn't feasible economically. We're now considering selling the entire VACCO business and expect to have a decision by February.

FM&P Acquisition Timeline
Q: What's needed to close the FM&P acquisition?
A: In the UK, the National Security Infrastructure Act requires a comprehensive review for national security implications. We've provided our inputs and expect to hear back within the next 30 days. We don't anticipate any problems, but the process is moving at a normal bureaucratic pace.

A&D Outlook and Boeing Impact
Q: Can you unpack your commercial aero assumptions, especially regarding Boeing?
A: We've prudently forecasted build rates slightly below Boeing's published rates due to their historical underperformance. There may be some impact on Boeing-specific contracts this year, but we're confident we can offset that with work from other customers. Despite previous challenges, we expect good growth this year and significant growth in the years to follow.

Fiscal '25 Guidance and SM&P Exclusion
Q: How will you adjust fiscal '25 guidance after the SM&P deal closes?
A: Once we include the acquisition, we'll break down the components, including acquisition amortization and other sizable impacts. We don't anticipate any noteworthy seasonality and will flag any unusual dynamics when we update guidance.

Test Business Growth in China
Q: Is improved performance in China included in your Test outlook?
A: We haven't embedded significant improvement in China as things remain relatively uncertain. We're forecasting steady performance without assuming a big turnaround at this time.

Impact of Administration Change on Renewables
Q: How might a less friendly administration affect your Utility and NRG business?
A: Regardless of policy changes, the market demands more electrification and expansion of generation and transmission. Our customers are increasing capital investments with a balanced mix of gas, solar, and wind assets. The most imperative need is to maximize existing assets, which aligns well with our Utility Solutions Group. We anticipate continued growth in these markets, irrespective of policy shifts.

Aftermarket Growth in A&D
Q: What are your assumptions for aftermarket growth in A&D?
A: Our Navy business has minimal aftermarket, so we're focusing on commercial and military aerospace. We're putting significant effort into growing our PTI business, which makes aftermarket filters, and our Mayday business, which supplies bushings for landing gear maintenance. For example, 787 aircraft are reaching the age for full landing gear rebuilds, which we're targeting and expect to drive growth.

Naval Business and Labor Issues
Q: Are labor issues at shipbuilders impacting your naval outlook?
A: We're not seeing any impact at this point. In fact, we're being told to go as fast as we can and anticipate acceleration in build rates, which will boost revenues going forward. We don't believe there's any reason for a slowdown in our business due to these external factors.

Debt Refinancing and Restructuring Adjustments
Q: Where are the debt refinancing and restructuring adjustments coming from?
A: The debt financing costs, about $3 million, hit the interest expense line, related to our revolver backstop and bridge loan for the acquisition. The restructuring costs hit OID, affecting the EBIT line. These were the main adjustments this quarter.