Rolls-Royce Holdings

We didn't know.

It turns out they stopped paying their bills to Rolls-Royce, and Rolls-Royce said, "That's fine.

Those airplanes don't need to fly."

Oh.

I wonder if they have a-

No, no agreement

... power-by-the-hour agreement or what exactly their agreement is or their lease agreement is with Rolls-Royce that they weren't able to pay.

But man, that's pricey.

And then there are others, much smaller companies.

Doncaster's, Rolls-Royce does, has internal capability.

Williams International has internal capability.

But strangely, GE and CFM does not so much, despite the fact that they are by far the biggest customer.

And again, it is an art to keep these blades alive, and especially the temperatures that LEAP and future engines will be operating at.

So it's a strategic approach.

And Rolls-Royce has done this very quietly, has had a lot of internal capability.

Rolls-Royce makes the majority of its turbine blades and vanes today.

Buy the American one." Except...

And by the way, some folks at Gulfstream said that, but guess what? The American content in the Bombardier jets was actually, in many cases, higher than the American content in the Gulfstream jets, because sometimes the Gulfstream jets use Rolls-Royce engines, which were made in England, and sometimes the Bombardier jets use GE engines, which were manufactured in the United States.

And see, this is something about trade that the president doesn't understand, that in a world of integrated supply chains, the name on the company or where the headquarters of the company is does not necessarily mean where the economic benefits of that company's activities primarily accrue.

Many, many thousands of jobs exist in the United States because of Bombardier, and so shutting them out would have a very negative consequence on those people.

So what you do...

For the fossil fuels or nuclear, you boil water, you generate steam, you put it through similar turbines that you see in aircraft, such as GE and Rolls-Royce and other aircraft manufacturers make those engines.

That's a generation part.

Then it goes through a substation, massive substation, that electricity is groomed to move forward.

There are a couple of interesting ones in the ones that you let get away that I would like to discuss.

So could you tell us, Rolls-Royce, what happened there?

Rolls-Royce, that's an interesting one.

I mean, it's a company that everyone knows about.

I didn't recognize the quality of it.

No, it was definitely one I was researching and looking into.

It may have been for a number of reasons that maybe I didn't have sufficient funds in my portfolio cash pot at that point.

Well, Rolls-Royce would have solved that problem.

During the period, we secured material contract awards with Blue Chip customers across several end markets.

And post-period end, we signed a significant multi-year agreement with Rolls-Royce, which I'll come back to in a moment.

In EMS, we won two new logos in scientific and analytical instruments.

And in power, we secured a new contract to supply power electronics for subsea oil and gas applications.

New customer wins for EMS and healthcare and a return to growth in the wafer fab capital market segment demonstrate commercial traction extending beyond aerospace and defense.

And these wins span each of our three divisions and provide broad based momentum.

I want to bring two of these relationships to life, starting with Rolls-Royce.

Shortly after the period end, we signed a significant multi-year agreement with Rolls-Royce to supply high reliability solutions for all of their wide-body civil aircraft engines throughout their operational lifetime.