Strong Revenue Growth
Revenue increased by 9% compared to the first quarter, with higher sequential sales in all four segments. International sales grew by 18% year-over-year and 14% year-to-date.
Improved Segment Operating Margin
The team delivered an 11.8% segment operating margin, demonstrating outstanding operating performance.
Increased Guidance
Based on strong Q2 results, the company increased guidance for segment operating income, earnings per share, and free cash flow.
Significant Defense Investments
The US and allies are making significant investments in defense capabilities, with a 22% increase in procurement and RDT&E over fiscal year 2025.
International Expansion
Strong international book to bill for aircraft, weapons, missile defense, and airborne systems. Opportunities in Europe and the Middle East noted.
Beacon Initiative
Introduction of Beacon, a flying mission testbed to accelerate autonomous mission capabilities in partnership with various industry players.
Solid Rocket Motor Expansion
Investments to increase solid rocket motor production rate from 13,000 units today to 25,000 by 2029.
Shareholder Returns
Commitment to returning approximately 100% of free cash flow to shareholders through dividends and share repurchases. Announced a 12% increase in quarterly dividend.
Positive Earnings Adjustment for Sentinel
Significant progress on the Sentinel program with a positive earnings adjustment reflecting improved confidence.