The Department of War is putting forward frameworks on missile production, guaranteeing production increases (e.g., from 600 to 2000 units/year) for the next seven years. The key question is whether industry can build enough capacity.

The Department of War has guaranteed the top line but not margins. The primes have to invest their own capital, cut share repurchases to fund capex, so it doesn't change their EPS algorithm much.

What we're doing in the war is very expensive. A theme is readiness, scalability, and affordability. We can't shoot down objects with $5 million missiles when they use $50,000 missiles.

The Middle East conflict is like a month of COVID for airlines there, with capacity cut 80%. This will impact global air traffic and aftermarket demand, and contribute to sticker shock for US airfares as oil prices rise.