Peter Arment

CEO declined an exact date but committed to a mid-to-late 2027 window for delivery improvement, citing 5-7 year workforce learning curves.

Atherton said too early to revise guidance but will evaluate in H2 if strong performance continues. MV-75 expected flat year-over-year revenue. Acceleration funding depends on Army securing additional appropriations through its processes.

Atherton said acceleration pulls entire program forward 2.5-3 years. EMD testing starts sooner, LRIP fills what would have been a two-year gap. Within months after aircraft #8, production continues with #9, #10. Full rate production within 5-6 years.

Donnelly said near-term cost profile unchanged. MOSA architecture enables future variant buildout without affecting current basic aircraft work. Acceleration focuses on bringing LRIP forward.

Donnelly said demand strong across entire portfolio with robust end market. Certification activity on M2, CJ3, and Ascend progressing well. Market and product portfolio in good position.

Donnelly highlighted strong demand across portfolio with particular excitement for Gen2 M2, CJ3, and Ascend nearing certification.

Donnelly confirmed Aviation margin progression exactly as planned. H1 below guide, H2 above. Strong jet and turboprop deliveries expected in back half.

Donnelly said CR amendments funded key programs like FLRAA and Ship-to-Shore at expected levels. RCV and FTUAS decisions expected later in year.

Donnelly said Denali is back in FAA certification queue now that engine is certified. Aircraft performance has been excellent.

Donnelly highlighted broad-based demand with particular strength in CJ3/CJ4 from Gen3 announcements. Expects one-to-one book-to-bill.

Donnelly explained Q4 cash was light due to Aviation inventory buildup from undelivered jets. Normal seasonal cadence expected in FY2025.

CEO explicitly declined to predict the outcome mid-negotiation but confirmed contingency planning for a work stoppage is underway.

Ortberg identified TIA 4b as the next key milestone, noted GE engine fix not impacting flight test (periodic inspections allow continued flying). Long-term production target is 5 per month.

Malave guided 737 deliveries around 500 (building ~30 737-10s that won't deliver until 2027 upon certification). 787 expected 90-100. BCA total deliveries up approximately 10%.

Ortberg said hardware and software modifications needed, then FAA certification of those steps. Anti-ice still critical path. More work on -10 than -7 but manageable. Still planning 2026 certification.

Ortberg confirmed 787 KPIs green at 7/month with Charleston expansion for future growth. MAX at 38 with one KPI below threshold on rework; rate increases in 5/month steps no earlier than 6 months apart.

FAA has daily digital dashboard access to KPIs. Same approval process for each rate break. First break likely takes longest. Minimum six months between breaks.

Management confirmed ~$5B outflow estimate, detailed first-half negative/second-half positive profile, and explained BCA/BDS/BGS cash flow contributions.

Calio said framework talks are productive and ongoing but declined specifics; tied progress to bipartisan support for higher 2027 defense spending.

Calio noted framework agreements enable bundling, scale economies, and production efficiencies on mature programs but declined specifics since negotiations are ongoing.

Calio confirmed financial and technical outlook on track. MRO output up 26% FY, 39% in Q4 with 16% TAT reduction. Heavier shop visits up 40% YoY. Expects similar MRO output growth in 2026.

Calio highlighted $8B of Q3 orders in effectors with mature processes yielding productivity. International backlog at 44%, top 3 programs are international. Mitchill noted $75M YTD productivity.

Calio said Patriot could be deployed from inventory for Golden Dome with backfill orders. LTAMDS delivered ~6 units to US Army with plans for more over next decade.

Calio confirmed European defense spending as clear opportunity, highlighted battle-tested products and strong co-production partnerships. Expects book-to-bill of 1.0 or more.

Calio highlighted strong demand across regions: US replenishment, Europe IADS, Asia-Pac naval munitions. NATO countries increasing defense spend.

Kathy said independent resources scrubbed the EAC assumptions and, with added resources and customer alignment, she is confident in an executable plan though qualification is not done.

Warden acknowledged Middle East urgency pulling opportunities forward but tempered expectations, noting international has longer cycles and acceleration largely impacts beyond 2026.

Warden highlighted FADC2 and IBCS as counter-drone connectors, expects international contribution greater than domestic in counter-UAS.

Warden said Northrop is ahead of new entrants who need time to build capacity and get qualified. Focus on providing optionality for DOD and prime contractors.

Warden confirmed protest period passed, work started. Contract includes 3 EMD units, 3 test options, and 6 LRIP aircraft. ~$350M first-year revenue.

Warden noted strong positioning from B-21 experience but said nothing is in the forecast given timing uncertainty. Contributing to Air Force program through mission systems.

Danny detailed slowed Middle East aerospace orders and potential Israel supply chain risk for G280 completions, but noted strong U.S. demand continues. Defense demand impact still too early to quantify.

Danny reported excellent progress, all major modules received, key milestone expected by year-end, on path to deliver first boat by end of 2028.

Confirmed rates will increase in regular order driven by backlog and demand, expects year-over-year production growth for the next couple of years

Disclosed first Columbia about 60% complete by year-end with all major modules at Groton ready for assembly, working to move schedule to the left with improving supply chain

Jason Aiken confirmed active engagement with government on cost savings, noted GDIT delivers mission-driven solutions not just consulting, acknowledged some solicitation sluggishness

Bell confirmed elevated CapEx is finite, possibly with overhang into early next year but not perpetual. SES JV formed specifically to avoid Leidos bearing the capital intensity of that growth. Focus on being diligent about when and where capital is deployed with clear triggers.

Cage emphasized differentiation through innovation, efficiency, and quality metrics. Bell added technology insertion enabling better, faster, cheaper exams for sustained profitability.

Bell downplayed the competitive threat, noting the IDIQ is just the start and Leidos has differentiated trusted mission AI capabilities. Emphasized trusted AI deployment as a key calling card for customers.

Bell directly quantified DOGE impact as negligible, in the very low 1% range, and highlighted offsetting opportunity in Defense Enclave Services expansion. Cage addressed Health & Civil backlog, noting VBA recompete and upcoming MHS Genesis sole-source.

Bell expressed eagerness for outcome-based contracting across all segments, citing proven track record of cost reductions for customers and profitability for shareholders. Cage noted some progress in digital modernization.