Scott Mikus

Mike declined to disclose platform-specific content for Prince & Izant but described it as proprietary and mostly aftermarket engine content such as fuel nozzles and rocket engines.

Joel directly named engine and passenger as the strongest submarkets and said prior destocking headwinds had eased; growth was good across the board.

Mike firmly rejected the deterrence thesis. Acquisitions driven purely by same TransDigm 20% IRR M&A logic. Businesses will run and operate independently.

Mike said any cross-selling would require arm's length agreements between operating units. Not in the acquisition case and not banked on. All 56 businesses will run independently.

Mike noted CalSpan and Raptor as two branches outside core aerospace hardware, both performing well early. But current M&A focus remains on traditional aerospace and defense components. Could potentially branch out in the future but not there yet.

Joel said no dramatic changes in Q4 aftermarket orders. Interiors picked up more after lagging the prior year. Engine strong all year. Freight was pretty solid after struggling the prior year.

Mike firmly rejected the idea of selling assets despite publicly traded aftermarket companies trading at higher multiples. Happy to own all 52 operating units.

Mike said engine would look better all else equal but they can't grocery shop for specific component types. M&A approach unchanged: 20% IRR, focused on components.

Kevin said shareholder returns have always been part of strategy. Special dividends and buybacks are the right tools when no immediate sizable M&A opportunities exist.

Kevin confirmed no meaningful margin difference between engine and airframe aftermarket content.

Joel said current Boeing orders support about half of 38/month rate but they're optimistic rates will increase. Will add people as necessary.

Kevin said buyback was purely opportunistic during market turmoil, not a signal about M&A pipeline. Doesn't say anything about the M&A market.

Kevin confirmed the math on capital deployment needed and emphasized ample capacity. Sarah validated the leverage math.

Stiehle sized Newport News's share at approximately $25 billion plus about $5.5 billion on Columbia; Kastner said material for a tenth boat was bought as a funding mechanism.

Kastner said Ingalls has plenty of baseline work plus battleship and frigate. Not currently planning to compete for auxiliary ships but will evaluate case-by-case as acquisition strategies develop.

Stiehle said some Q4-to-Q3 material pull-ahead occurred but the growth trend is real and sustainable. Conservative start-of-year guide; expects revenue to continue ramping through 2026.

Kastner said foreign investment to expand industrial base capacity is a possibility. Acquisition strategy for the battleship is still being defined.

Ingalls wage increase requires union negotiation. Current agreement expires next year. Hoping for late 2025 or early 2026 implementation.

Kastner confirmed furlough is not impacting submarine negotiations. Emphasized that incremental awards would undermine the consistent demand signal needed by the industrial base and supply chain.

Stiehle declined to reinstate multi-year FCF target, focusing on credibility through consistent annual guidance delivery. Raised current year FCF guide to $500-600M.

Kastner said significant capital investment would be required for sole-source Virginia production. Comfortable with current teaming arrangement with General Dynamics but willing to support Navy's evaluation of alternatives.

Kastner said contract types will be evaluated case-by-case for Block VI and Columbia Build II. The hybrid approach forms an interesting basis but doesn't dictate future structures.

Stiehle declined to provide specific EAC assumptions, saying they reevaluate every 90 days and expect stabilization and improvement going forward.

Management drew parallels to post-Katrina recovery but couldn't give a specific date for EAC improvement. By 2027, majority of work will be post-COVID contracts, which should improve profitability.

Bell said in-sourcing interest is rising across agencies but Leidos transitions to higher-level mission systems integration; the customer still needs Leidos to maintain and enhance systems.

Bell argued the reorganization at year start already streamlined delivery alignment. Recently appointed a COO in Defense to drive execution and scaling. Portfolio breadth is a strength because customers need reliable partners across domains, but Leidos is focused within growth pillars. SES JV is an example of surgical portfolio shaping.

Bell confirmed IDIQs are never included in backlog until task orders arrive. Cage noted some element of new business wins is always assumed in annual guidance, but material Golden Dome, FAA, or microelectronics task orders would represent upside.

Bell argued AI proliferation is a force multiplier, not a threat. Leidos uses AI internally as a beta tester and then deploys lessons to help customers shift budgets from maintenance to high-value mission outcomes. Will Johnson's transformation office embracing AI to drive efficiency internally and externally.

Bell rejected the spinoff thesis, arguing Dynetics combined with Leidos mission systems creates unique value competitors can't match. Plans to invest and help market value Leidos higher because of the crown jewel asset.

Cage clearly stated fundamentals are strong across all segments. Guidance conservatism driven by wanting capacity to invest in NorthStar 2030 opportunities and partner with agencies like GSA.

Bell deferred to the administration and agency heads on privatization decisions, but signaled eagerness to capitalize on any such opportunities.

Cage acknowledged the math and noted headwinds from higher interest rates on refinanced debt and taxes. Framed 2025 as an investment year with potential to raise guidance later.

Danny said Block VI discussions are ongoing but couldn't share timing. On steam turbine dual-sourcing, noted the Navy has been working on adding turbine generator capacity for some time.

Confirmed continued robust Marine growth trajectory, linked margin expansion primarily to supply chain stabilization and throughput improvements

Confirmed sufficient labor availability for additional growth, would need some additional but not enormous capital investment for solo Virginia build

Declined to attribute demand strength to any single macro factor, acknowledged bonus depreciation always helps but noted multiple contributing drivers

Acknowledged longstanding debate about Columbia fleet size but reported no new developments on expanding beyond current program of record

Confirmed all Marine contracts include EPA clauses but acknowledged inflation far exceeded contemplated levels, with some materials up 37%

Deflected tariff question by citing US-heavy manufacturing base and willingness to adapt to policy changes as they emerge

Calio agreed the next-gen single-aisle propulsion business model must change to smooth upfront investment, but said the focus stays on current execution.

Calio acknowledged challenge with defense tech startup valuations. RTX focuses on competitive compensation and mission-driven culture. About 60,000 engineers representing 1/3 of workforce. Retention has been largely successful.

Calio favored strengthening existing supply base and bringing new suppliers vs. vertical integration. Cited solid rocket motors and castings as constrained value streams needing investment. Partnering with DoW on industrial base strengthening.

Calio said V2500 demand continues above prior expectations with significant runway. Fleet average age 15 years, 40% pre-second shop visit. Customers need lift from V2500 aircraft.

Calio said RTX intends to capture value for GTFA investment on customer-by-customer basis. Hot section plus provides 90-95% of the 2x time on wing improvement.

Calio declined specifics but expressed cautious optimism citing strong track record on recent labor negotiations. Emphasized longstanding relationship with the union.

Calio deferred to customers on specific rates but confirmed mid-single-digit OE growth expectation. Collins has protected long-lead items for potential upside.

John would not endorse a specific model but noted strong backlogs and that ex the one DS program, margins are about 11%.

Warden acknowledged European sensitivity on buy-local and delivery timelines but emphasized robust demand and capacity from 20 new facilities to serve both U.S. and European customers.

Warden confirmed growing space international pipeline including Hungarian partnership, expects international to be a key Space contributor in five to ten years.

Warden confirmed expanding program of record beyond 100 is separate from rate acceleration funded by reconciliation. Decision not yet made by DOD.

Warden said requirements drive program decisions and canceled programs could be reevaluated, though current-year expectations don't reflect it.

Warden clarified the Promontory Utah facility is in space (not DS), produces propellant ingredient with alternative sources. No expected impact to Sentinel or any program.