Citi managing director and aerospace and defense lead analyst Jason Gursky joins the Morning Brief to discuss what investors can expect from the defense industry as some of its top players are set to report earnings this week, notably Boeing (BA) as it sits back down at the negotiating table with union leaders this week.

"I think most companies will be giving us a preview on their outlooks for 2025 and what the expectation is for top line growth there, as well as margins. And the thesis that I've had coming into this year is that the narrative that had dominated 2023 coming into the first half of 2024 — which was that growth was lagging and that margins were under pressure as companies absorbed higher costs driven by inflation and the pandemic and resulting in margin pressure — would shift to revenue growth is going to start accelerating and margins are going to expand," Gursky tells Yahoo Finance.

Moving forward, he believes that investors should be focused on the labor productivity of these defense companies. He explains that it is about "making sure that we can ramp up the production rates across the defense industry going into 2025 at productivity levels that allow for margin expansion."

Catch Jason Gursky explain why he believes Boeing's new CEO Kelly Ortberg could possibly turn things around for the manufacturer and major defense contractor

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This post was written by Melani Riehl