Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
|---|
| We still have longer lead times, but as long as we kind of take those into account, we are able to manage our business much better than over the last couple of years |
| So we're happy about that |
| Again, very wonderful news |
| When the chips are down, you still deliver and perform, that to me is an indication of a very good solid company |
| This is, I think, a very positive new news for Kratos and to Valkyrie, very positive news |
| I think pretty much every quarter, wonderful, wonderful customer |
| In the last few months, the LEAP-1A has broken out as a clear market share winner for the A320neo Aircraft family |
| That's wonderful news that the qualification's in progress |
| So that's good news |
| And we have an EBITDA margin of 21.4% as well, which is pretty good |
| But notwithstanding all of that, our Park people did an outstanding job in Q2, in my opinion |
| And we believe the GE Aviation Programs and Park outlooks are much more meaningful and significant than quarterly forecast estimates because the quarters go up and down because who knows why, but the key thing to us is, what's the long term outlook? What are the long-term prospects? That's more meaningful for us and that we have a better feel for as well |
| So I was very pleased with that number |
| Will Airbus that rate at 2026? Hard to say, but based upon their huge backlog, huge backlog, there's very good reason to believe they'll get there in 2026, for some time in the not too distant future thereafter |
| So, okay, that's good news |
| In my opinion, our Q2 was one of our best Park quarters |
| So a lot better |
| Why is that? This huge jump in market share is quite remarkable when it considers there are 12,348 firm engines – sorry, firm engine orders for the A320neo Aircraft family |
| I don't want to say too much more about it, but I feel quite encouraged that this is not going away, and it's going to be moving up a potentially significant program for Park |
| So very wonderful to have people like this |
| I think people in industry are getting pretty excited about this aircraft |
| Our people think we did an outstanding job in bringing the number down |
| We're certainly not singling out MRAS, they're probably better than a lot of other companies in the aerospace industry |
| I thought, Boy, our gross margin is going to look so good |
| These are updates – I guess by coincidence, almost, on the three programs that totaled $20 million in the outlook, the ADL program, the Kratos program and the Park [indiscernible], I think all, everything is positive |
| The relationship between MRAS and Park is very special and unusual and Park is very fortunate to have such a wonderful customer as MRAS, and that's such an unusual relationship with MRAS |
| Will this crisis lead to significant additional A320neo Aircraft family market share gains for LEAP-1A engine? Many believe it will, what do you think? I mean the dilemma is that people are ordering these airplanes, a lot of them |
| So still a very important program, very, very important for our success now and in the future |
| So I think just – my opinion is, this will be a real important exciting program for Park for a long time to come |
| But by considering all the wonderful things which have resulted from the relationship with MRAS and the many wonderful things still expected to come from the relationship on balance, there's no question whatsoever in our minds that we are extremely fortunate MRAS as a customer on balance, not even close when you consider the plus and minuses |
| Statement |
|---|
| Very difficult for us to provide a meaningful forecast for Q3 and Q4 |
| The [second item], why their sales dropped $3.1 million from Q1 to Q2, while it's just coincidence, the sale drop is explained completely, 100% by a $3.1 million drop in GE Aviation Jet Engine Program sales |
| Why is the market share firm engine orders for the A320 aircraft family? Why is the chip that's so abruptly and dramatically in favor of the CFM LEAP-1A engine? Very serious issues to Pratt 1100G |
| And what is it about? I want to guess, probably you can guess already, international freight, that's been the thing that's really been the toughest for us |
| Yes, it causes – we have to – of course, it's a challenge towards our production management, with supply chain management and with our staffing management |
| And I was a little frustrated because I felt, boy, we're doing all the right things |
| Because MRAS is carrying excess finished structures inventory as well |
| We don't go for the big programs for structures where it's a lot of margin pressure, it's just not really for us |
| We don't even know or we'd be given the lead time and we've blown and it made it very challenging to run our business from a production management perspective, from a supply chain perspective, from a staffing perspective |
| I was actually a little bit surprised myself with a topline loss of $3 million |
| So there maybe, like, it will be some degree of quarter-to-quarter volatility in our GE Program sales because of inventory management challenges, maybe some of the rollercoaster from time to time |
| We just don't feel comfortable |
| Total missed shipments in Q2, approximately 220,000 |
| This is lower than the build plan range |
| This is a concern of ours and others, we're not the only ones, and I won't mention who, but we're not alone that's concerned |
| So we're talking about rounding airplanes for a long time, a very tough situation |
| Because of uncertainty with Q3, because the burn down |
| So what happens in the aerospace industry, in my opinion, again, is the players tend to go on autopilot too long, they tend to overshoot |
| It's difficult to fully comprehend the full implications of the crisis and where it's going, but the story may not be over, maybe far from over |
| First six months of 2024, commercial down a little bit |
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