Financial Data and Key Metrics Changes - The company reported robust revenue growth of 4.8% year to date, with Q2 revenues reaching $4.25 billion, up 3% year over year [8][28] - Adjusted EBITDA for the quarter was $647 million, reflecting a 16% year-over-year increase, with an EBITDA margin of 15.2%, the highest ever by 100 basis points [29][30] - Non-GAAP diluted EPS grew 22% to $3.21, surpassing the previous record of $2.97 [29] Business Line Data and Key Metrics Changes - National Security and Digital revenues increased by 3% year over year, with a non-GAAP operating income margin of 10.4% [31] - Health and Civil revenues saw a 1% year-over-year increase, maintaining a non-GAAP operating income margin of 24.9% [33] - Defense Systems revenue experienced the highest growth at 10% year over year, driven by increased volumes in various defense programs [34] Market Data and Key Metrics Changes - The company noted a strong snapback in the book-to-bill ratio to 0.9 in Q2, with more than half of the awards being new and takeaway business [21][22] - The pipeline of opportunities is robust, with expectations for a greater awards pace in the latter half of the year [22][38] Company Strategy and Development Direction - The company is executing its North Star 2030 strategy, focusing on five growth pillars: space and maritime, energy infrastructure, digital modernization and cyber, mission software, and managed health services [10][24] - The administration's funding priorities align with the company's growth pillars, providing significant opportunities in areas such as air traffic control modernization and border security [11][56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the improving customer decision environment and the potential for increased awards in the second half of the year [21][38] - The company raised its full-year guidance for 2025, reflecting confidence in future cash flows and ongoing investments [39] Other Important Information - The company completed the Kudu Dynamics acquisition, adding $400 million in pipeline opportunities and enhancing its capabilities [23][36] - The company ended the quarter with $5.1 billion in debt and a gross leverage ratio of 2.2 times, indicating a strong balance sheet for future capital deployment [37] Q&A Session Summary Question: Potential financial impact of GSA initiative - Management views the GSA's increased role in procurement positively, seeing it as an opportunity for growth rather than a threat [41][42] Question: Opportunities for organic investment in maritime space - Management is excited about opportunities in the maritime sector, particularly in unmanned autonomous vehicles, and is investing in prototypes [53][56] Question: Opportunities in the reconciliation bill - Management identified billions in near-term addressable funding across various sectors, including FAA modernization and border security [65][66] Question: Impact of large contract awards to competitors - Management does not see large awards to competitors as a significant threat but rather as an opportunity to leverage their own capabilities in AI and commercial technology [88][90] Question: Update on Dynetics acquisition - Management expressed confidence in the Dynetics acquisition, noting improved performance and growth potential in defense capabilities [99][101]