Scott Deuschle

Kathy declined to quantify share, saying NOC starts smaller as a new supplier and expects to scale by performing on early production deliveries.

John declined to detail outer years but pointed to Sentinel, B-21, and weapons demand as drivers that should let NOC accelerate revenue over time.

Warden acknowledged concurrent development and production risk on the advanced radar. New facility opened with tooling in place, workforce being trained. Limited detail due to classification.

Green confirmed both sides investing significantly but could not provide details due to classified nature. Warden added the deal improves ROIC over the life of the program for both parties.

Warden said not much 2026 EBIT impact. Company expects $2-3B investment over multi-year period with improved returns and accelerated revenue, but greater impact in 2027-2029.

Crews explained Gen 63 volumes flat in 2026 as capacity expansion continues. Growth expected to reaccelerate in 2027 alongside restricted space security programs.

Crews confirmed the B-21 EMD cost growth and LRIP restructure offset were immaterial, essentially netting to zero in Q3.

Crews noted international book-to-bill started at 1.45 in Q1, slightly below 1x in Q2-Q3 as backlog converts, but with 20% YTD and 32% quarterly sales growth.

Warden acknowledged dynamic environment but expects space to return to growth in 2026 after 2025 downturn, with Golden Dome as significant budget driver.

Crews acknowledged cash flow impact concentrated in 2026-2028 but said risk ranges were built into guidance. Did not explicitly address lower-end bias.

Crews confirmed all multi-year FCF guidance ranges held, including $4B for 2028, with focus on performance and rationalizing investment.

Crews attributed expansion to factory efficiency, team development at scale, digital technologies, and G&A reduction.

Warden deferred specifics on pricing, noting it would be a discussion informed by accumulating performance data.

Stiehle said the majority of incentives are recognized on a go-forward basis, with a piece booked in Q2 given the urgency of starting investments, but declined to give specifics.

LHA 8 has test program challenges with new systems but test rate improving in recent weeks. Navy J-book schedule dates are contextual. Very confident in post-COVID LHA 9 and 10 margin improvement.

Stiehle confirmed submarine awards are probability-weighted in the Q2 guide. Incentives for performance and cash collections will depend on timing of award execution. Comfortable with progress.

No impact seen from nearby data center construction on labor availability. Newport News hiring was very strong in H2 2025. Regional workforce development centers continue to provide good pipeline.

Kastner confirmed expectation of profitability on CVN 80 and 81. Late material risk is behind them. CVN-80 is now 50% erected with team working to get back on sequence after deck over.

No material competitive wage response in the local market. Wage increases have been effective at reducing attrition. About 50% of hires now come from workforce development centers, apprentice schools, and high school programs.

Both yards are achieving roughly equal throughput improvement levels, split approximately equally between increased outsourcing and labor force performance. The reduction from 20% to 15% was also roughly equal.

Stiehle confirmed negative EACs on both Block 4 and Block 5 Virginia class boats. Kastner clarified Block 5 boats were negotiated in 2019, which is pre-COVID.

Kastner acknowledged potential timeline impact from additional combat capability additions based on CVN 78 deployment lessons, but wouldn't confirm specifics.

Mike said the defense business spans tens to hundreds of thousands of SKUs, a broad base largely derived from commercial technologies, while deferring on the legislation's final impact.

Joel said no core supply-chain issues were flagged across the 50-plus op units and performance is in the high 90% range, with only occasional sub-supplier slips.

Mike confirmed no significant overlap between Jet Parts PMAs and existing TransDigm products. Will run as independent entities following standard TransDigm playbook.

Patrick said PMA share loss is small and not something they're seeing as an issue. Operating units monitor it at the ground level. On-time delivery has improved significantly which helps defend share.

Mike said Simmonds has a typical range of contracts, some relatively short and some life-of-program. Not dramatically different from any other TransDigm acquisition.

Joel said they're hopeful automation and AI investment will keep headcount below sales growth rate. Operating units focused on driving sales per employee higher each year as one of three value drivers.

Mike attributed the underperformance vs airframe peers to natural lumpiness. TDG outgrew the peer group in early COVID recovery quarters. Over the 4-year span, volumes are where they should be relative to takeoffs and landings.

Kevin confirmed the Boeing contract was successfully closed in December, with new terms starting January 1st. Same duration as prior contract, no retroactive impact.

Joel confirmed TDG is about market-weighted between engine and airframe. Engine-focused units like Harcos and Auxitrol showed pockets of outsized strength.

Phebe declined EIS estimates as regulator-paced but disclosed a planned production break between the G280 and G300.

Phebe answered no, citing the partner agreement, while conceding some production may lag late this year.

Danny confirmed remaining margin headroom on both the G700 and G800, concentrated in completions.

Kim Kuryea attributed 100% FCF conversion target to strong operating performance across business units, confirmed no Navy working capital support for CapEx, targeting 100% conversion into next couple of years

Novakovic defended 160-unit guidance as prudent, noting final test and delivery are bottlenecks, working to expand completion capacity through efficiency and tooling while absorbing 30.5% and 16.5% revenue growth in 2024-2025

Confirmed broad-based order strength led by G700 then G600, with good geographic distribution and growing G800 interest into Q3

Confirmed high-teens margins require combination of volume, mix improvement, and learning curve progression without specifying which dominates

Deflected with broad commentary about group size and complexity rather than pinpointing specific margin drivers for the quarter

John described multi-chemistry coating capacity that deposits all chemistries at once on internal and external blade surfaces, having filled the last space at Whitehall pending expansion.

Plant gave comprehensive breakdown: anticipated OEM build rates, catch-up demand, share gains, price increases, and 48% spares growth. GTF Advantage production ramping through 2026, LEAP-1B Maverick changeover expected by year-end.

Plant said no, aerospace growing too fast for IGT to overtake. But noted product mix is shifting toward more complex cored turbine blades, increasing content and value per part.

Plant said CapEx likely to exceed $400M in 2025 and remain high in 2026 and 2027. IGT will be a higher relative percentage. Every customer conversation reveals expanding opportunities.

Plant attributed sequential margin flatness entirely to tariff drag, noting fasteners had highest tariff impact. Adjusted for tariffs, margin would start with 30%. Expects recovery in 2H.

Plant broke out spares: Commercial Aero/Defense up 40%+, IGT/Oil&Gas mid-teens. Confirmed LEAP LPT destocking still ongoing but should clear by Q3-Q4 as production reaches 400+ engines/quarter.

Plant gave detailed timeline: GTF mid-2025, LEAP-1A changeover complete as of January, LEAP-1B not until mid-2026. Thorough answer covering all engine programs.

Plant explained three European facility closures/divestitures plus productivity gains drove the margin improvement. Expressed confidence in sustaining the exit rate.

Calio said V2500 shop visits are on plan with low retirements and long runway; PW4000 in expected managed decline; GTF aftermarket margins low double digits.

Mitchill said Advantage has slightly higher cost but better pricing, roughly neutral per-engine. Q1 OE margin impact was flat. Aftermarket margins are low double digits with heavier shop visit mix improving sequentially.

Calio confirmed Hot Section Plus introduces 30-35 parts delivering 95% of Advantage durability benefits. Plans to capture value for investment but evaluating contract-by-contract where it's most beneficial.

Mitchill detailed V2500 shop visits ~800 (within 20 of 2025), PW4000/2000 retirements creating ~$100M headwind, GTF aftermarket growing at similar rate to 2025 with low double-digit margins expanding 1-2pts. Calio said Asheville casting foundry impact in 2028-2029 timeframe.

Mitchill denied spare engine discounting, said mix between installs and spares unchanged. Expects continued OE step-up in Q4 with more negative engine margin headwind.

Mitchill declined to quantify 2026 but intent is no larger YoY headwind. Continued progress on USMCA qualification, military duty-free exemptions, and bonding.

Calio said teams were working on alternate suppliers and felt increasingly optimistic about avoiding notable impacts from the SPS facility fire.

Mitchill outlined $8.4B operational FCF baseline ex-powder metal, with continued working capital improvement runway from inventory and contract assets.