Strong Revenue and Operating Performance
Revenue increased by 9% compared to the first quarter of 2025, with all four segments contributing to growth. Segment operating margin stood at 11.8%.
Increased Guidance for Financial Metrics
The company increased its guidance for segment operating income, earnings per share, and free cash flow due to strong second-quarter results and a positive outlook for the second half of the year.
International Sales Growth
International sales grew by 18% year over year and 14% year to date, with strong demand in Europe and the Middle East.
Positive Developments in Sentinel Program
Significant progress was made on the Sentinel program, leading to a favorable earnings adjustment and improved confidence in achieving performance incentives.
Increased Defense Spending and Funding
The US and allies are increasing investments in defense capabilities, including a 22% increase in procurement and RDT&E over fiscal year 2025. B-21 and Sentinel programs received significant additional funding.
Record Shareholder Returns
The company repurchased nearly $900 million in stock and announced a 12% increase in quarterly dividends, marking the 22nd consecutive annual increase.