Revenue Growth in Q2
Generated $2.2B in revenue in Q2, up 5.7% year-over-year, with 4.5% organic growth.
Improved Profitability and Margins
Reported an EBITDA margin of 11.8% in the quarter, an increase of 70 basis points year-over-year.
Strong EPS Performance
Second-quarter adjusted diluted EPS of $6.81, up 14% versus prior year.
Free Cash Flow and Upgraded Guidance
Q2 free cash flow of $138M; raised FY2026 free cash flow guidance to at least $725M and increased full-year revenue guidance to $9.3B–$9.5B (7.8%–10.1% growth).
Backlog, Awards and Book-to-Bill
Won $1.4B of awards in the quarter; trailing-12-month book-to-bill of 1.3x (Q2 book-to-bill 0.65x for the quarter); backlog of $33B, up 3% year-over-year, with funded backlog up 7%.
Technology Mix and Strategic Positioning
Technology now represents nearly 60% of revenue with a leading position in electronic warfare (~$2B revenue) and growing enterprise technology capabilities (three largest agile software programs in federal gov).
Pipeline and Future Opportunities
Reported $6B of bids under evaluation and plans to submit ~$20B of additional bids over the next two quarters; over 70% of current pipeline and planned bids are for new business.
Operational Metrics and Efficiency Gains
Day Sales Outstanding of 57 days; CBP modernization example showed nearly 200% increase in software releases over five years and like-for-like cost reductions, demonstrating operational impact.