Financial Data and Key Metrics Changes - Revenue grew 23% to $66 million, driven by solid performance across all end markets [5][14] - Adjusted EBITDA increased 12% to $6.3 million, with an adjusted EBITDA margin of 10.8%, up 40 basis points year-over-year [5][16] - Book-to-bill ratio was 1.3 times, resulting in a record backlog of $500.1 million, up 23% year-over-year [5][18] Business Line Data and Key Metrics Changes - Defense market sales increased by $9.9 million, or 32%, due to project milestones and growth in new and existing programs [14][16] - Energy and process market sales rose by $2 million, driven by large capital projects [14] - Aftermarket sales for energy and process and defense markets were $9.8 million, reflecting resilient demand [15] Market Data and Key Metrics Changes - Strong momentum in the U.S. Navy programs, including a $25.5 million follow-on order for the MK 48 Mod 7 heavyweight torpedo program [6][14] - Increased sales in the space market, with $22 million in new orders from commercial space launch customers [10][14] Company Strategy and Development Direction - The company is focused on diversifying its portfolio across high-growth, innovation-driven end markets, including defense, energy, and space [11][12] - Recent acquisition of X-Dot Bearing Technologies aims to enhance competitive positioning in high-speed rotating machinery [12][13] - Continued investment in advanced manufacturing technologies and facilities to support growth in defense and space sectors [8][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to achieve fiscal 2027 targets of 8-10% organic revenue growth and low to mid-teen adjusted EBITDA margins [21] - The company remains well-positioned despite potential impacts from government shutdowns, with minimal disruption expected [33][34] Other Important Information - The company ended the quarter with $20.6 million in cash and no debt, providing significant flexibility for future growth investments [19] - Capital expenditures were $4.1 million, focused on capacity expansion and advanced technologies [19] Q&A Session Summary Question: Clarification on $22 million in space and aerospace orders - $15 million of orders were recognized in Q2, while $7 million will be recognized in Q3 [24] Question: Reason for maintaining guidance instead of raising it - Guidance was maintained due to consistent tracking with expectations and timing of project milestones [26] Question: Update on cryogenic facility and customer bookings - The cryogenic facility is on track, with testing expected to begin soon, and customer bookings are healthy [27] Question: Impact of government shutdown on business - Minimal impact is expected, with long-standing programs continuing to progress [33] Question: Customer feedback on X-Dot transaction and technology applications - Positive feedback received, with technology enabling entry into new markets like small modular nuclear [36] Question: Size and timing of investments in the space market - Additional lathes and mills will be purchased, factored into CapEx guidance for the year [38] Question: Momentum in small modular reactors - The company is in early development phases for small modular reactors, with potential for scaling in the future [42] Question: Breakdown of defense revenue growth - A significant portion of the $9.9 million growth was due to unusually high material receipts impacting gross margin [46]