John Franzreb: Okay. And just lastly, on the long-term financial targets, any kind of update when we would expect to realize those targets, is that a exit philosophy ending this 2025? Or what are your thoughts there?
Kevin Cavanah: I think, again, it’s similar probably to the answer on, SG&A. I think you can see significant movement, toward those targets at the end of the in the fourth quarter. Will we get there all the way? I’m not sure about that, but I do think those are achievable in in the in fiscal 2025.
John Franzreb: Great, guys. Thank you for taking my follow ups.
Operator: It looks like we have follow-up questions from the line of Brent Thielman of D.A. Davidson. Your line is open.
Brent Thielman: Hi. Just thinking about CapEx Can you give us a sense of how we should be modeling, CapEx for the year or the next couple of years? Just, should we think of the is it tied to revenue growth pursuing there are some costs to support all of this growth, right?
Kevin Cavanah: It is tied to revenue growth, and it’s also tied to the fact that as we’ve been trying to control costs the last few years, we’ve held our capital spending pretty low. So I’d expect it to increase. We’ve put a long-term target out there at 1.5% of revenue. I think we’d probably be around that level for the second half of the year or potentially a little higher as we as we kind of almost you ramp up some of that CapEx for the for the revenue volumes that are coming. I don’t have a fiscal 2025 CapEx budget at this point, but I would expect we’d probably be at least at the 1.5% next year or potentially a little higher.
Brent Thielman: And, for fiscal year 2025, when you say a little higher, is that compared to the second half of the, fiscal year 2024 or just in general, a little higher than 1%?
Kevin Cavanah: I’m talking I’m talking a little higher as a percent of revenue. So when I talk about the 1.5% of revenue, it could be it could be 1.8 or 2%. But, again, I don’t have a I don’t have a developed CapEx forecast yet. I’m just anticipating that there will be needs for portions of the business that are growing.
Brent Thielman: Perfect. Makes sense. I appreciate the follow-up. Thank you so much.
Operator: Thank you. I’m showing no further questions at this time. I’d like to turn the call back over to John Hewitt for any closing remarks.
John Hewitt: I wanna thank everybody for being on the call today. I hope it’s clear that there are a lot of great things happening in in the business. And that, we are positioned for significantly improved bottom line profitability as you look out into the out into the short term here. So you very much for your time today and everybody. Please be safe. Thank you.
Operator: [Operator Closing Remarks].
