ASGN (NYSE:ASGN) Q4 2025 Earnings call February 04, 2026 04:30 PM ET Company ParticipantsKimberly Esterkin - Head of Investor RelationsMarie Perry - CFOShiv Iyer - PresidentTheodore Hanson - CEOConference Call ParticipantsJeffrey Silber - AnalystKevin McVeigh - AnalystMaggie Nolan - AnalystMark Marcon - AnalystSurinder Thind - AnalystTobey Sommer - AnalystOperatorGreetings, and welcome to the ASGN Incorporated fourth quarter and full year 2025 earnings call. At this time, all participants are on a listen-on ...

ASGN (NYSE:ASGN) Q4 2025 Earnings call February 04, 2026 04:30 PM ET Speaker6Greetings, and welcome to the ASGN Incorporated fourth quarter and full year 2025 earnings call. At this time, all participants are on a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. It is now my pleasure to introduce your host, Kimberly Eskin of Investor Relations. Thank you. You may begin.Speaker2G ...

Core Insights - KBR has been awarded a seat on the Missile Defense Agency's SHIELD contract, which has a ceiling of $151 billion, allowing for rapid delivery of innovative capabilities to the warfighter [1][2][3] Group 1: Contract Details - The SHIELD contract is a Multiple-Award, Indefinite Delivery, Indefinite Quantity (IDIQ) contract that encompasses a broad range of work areas [1] - This contract enables KBR to support the next generation missile defense mission and other Department of War organizations [3] Group 2: Company Capabilities - KBR is recognized for its ability to deliver innovative, mission-ready solutions across various domains including land, sea, air, space, and cyberspace [2] - The company leverages advanced technologies such as artificial intelligence, machine learning, and digital engineering to enhance missile defense systems [4] Group 3: Company Overview - KBR employs approximately 37,000 people globally and operates in over 29 countries, providing science, technology, and engineering solutions [5] - The company focuses on delivering value-added services and long-term operations to ensure consistent and rapid delivery with predictable results [5]

Core Insights - Redwire Corporation (NYSE:RDW) is recognized as a promising aerospace and defense stock by Wall Street analysts, with a Buy rating reiterated by Canaccord Genuity analyst Austin Moeller due to its strategic positioning and growth potential [1][2] Group 1: Business Model and Growth Potential - Redwire is transitioning from a commercial space company to a defense technology business model, which positions the company for long-term growth and recurring revenue streams [2] - The company is expected to benefit from an expanded market presence as it shifts its focus towards defense applications [2] Group 2: Innovative Technologies - Redwire's innovative technologies, such as the Stalker UAS and the Roll-Out Solar Array (ROSA), are highlighted for their extended range and low acoustic profile, contributing to the company's competitive edge [3] - The Roll-Out Solar Array has been selected for the Army's Long Range Reconnaissance program, which is anticipated to generate significant revenue [3] Group 3: Recent Contracts and Developments - Redwire secured a $44 million phase 2 contract from the Defense Advanced Research Projects Agency (DARPA) for its Otter Very Low E Earth Orbit (VLEO) Mission, indicating strong demand for its technologies [4] - The VLEO mission is described as a new frontier for defense, intelligence, and communications, showcasing the company's innovative capabilities [4] Group 4: Analyst Ratings and Price Targets - Cantor Fitzgerald analyst Colin Canfield also reiterated a Buy rating on Redwire, setting a price target of $9, reflecting confidence in the company's long-term prospects [3]

Core Viewpoint - Volkswagen Group's Audi business group has agreed to sell a controlling interest in Italdesign Giugiaro to UST, while Lamborghini will retain a significant shareholding in Italdesign [1][2] Group 1: Transaction Details - The transaction is subject to regulatory clearances, and no purchase price or valuation details have been disclosed [2] - Volkswagen has been considering the sale of Italdesign as part of a broader restructuring of its European operations since at least May [2] Group 2: Strategic Intent - UST plans to leverage its capabilities in digital engineering, vehicle electronics, and AI to enhance Italdesign's activities [3] - Italdesign aims to become the first full integrator of hardware and software globally, focusing on both the automotive sector and other high-tech industries [4] Group 3: Partnership Benefits - The partnership is expected to accelerate Italdesign's service portfolio expansion and deepen its market penetration internationally [4] - UST's global presence in over 30 countries is anticipated to support Italdesign's international growth [5]

Core Insights - Lockheed Martin is nearing completion of an 88,000-square-foot facility, the Missile Assembly Building-5 (MAB-5), which will enhance the production capabilities for the Next Generation Interceptor (NGI) [1][2] - The facility is expected to be operational by early 2026 and represents a significant investment in meeting the U.S. government's demand for rapid delivery of missile defense systems [2][4] Production and Design Strategy - MAB-5 is designed for efficiency and scalability, incorporating best practices from existing high-reliability programs like the Terminal High Altitude Area Defense (THAAD) system [4] - The NGI employs a digital twin approach, which reduces risks throughout the product lifecycle, from design to manufacturing and sustainment [4][6] - Lockheed Martin is leveraging advanced digital engineering tools to enhance the design, testing, and validation processes, which allows for improved manufacturability and reliability [5][6] Economic Impact - The Courtland site currently supports various military programs and employs nearly 500 people, with an additional 100 expected to work in MAB-5 once operational [8] - The new facility is anticipated to create good-paying jobs and stimulate economic growth in the local community, as highlighted by U.S. Rep. Dale Strong [9]

Financial Data and Key Metrics Changes - Revenue increased to $14.4 billion, representing pro forma growth of 4% year-over-year [9] - Adjusted EBITDA reached $1.1 billion, an increase of 5% year-over-year [9] - Adjusted diluted earnings per share rose to $2.22, up 11% [9] - Free cash flow was $516 million, supporting debt reduction objectives and bringing net leverage to 3.2 times [9][26] Business Line Data and Key Metrics Changes - Digital solutions generated revenues of $1.5 billion for the quarter and $5.5 billion for the year, representing 11% and 7% growth respectively [24] - Global engineering solutions generated revenues of $2.4 billion for the quarter and $8.9 billion for the year, representing 9% and 2% growth respectively [25] Market Data and Key Metrics Changes - The company submitted $35 billion in bids, achieving a full-year book-to-bill ratio of 1.2 times and a quarterly book-to-bill ratio of 1.6 times [10] - Backlog grew 5%, reaching over $47 billion, with $20 billion in proposals awaiting awards [10] Company Strategy and Development Direction - Amentum aims to integrate and deliver end-to-end advanced engineering and technology solutions across key markets including defense, nuclear energy, intelligence, and space [5][6] - The company is focusing on core growth areas such as RDT&E, intelligence operations, and environmental remediation, while also targeting accelerating growth markets like space systems and technologies, critical digital infrastructure, and global nuclear energy [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to adapt to changing government priorities and maintain operational resilience [13][14] - The outlook for fiscal year 2026 includes expected revenues in the range of $13.95-$14.3 billion, with adjusted EBITDA projected between $1.1 billion and $1.14 billion [28][29] Other Important Information - The company has exited all transition service agreements and is on track to deliver at least $60 million in net run rate synergies by the end of fiscal year 2026 [8] - Amentum's diverse portfolio, with 20% of revenue tied to commercial and international work, provides insulation from sector volatility [14] Q&A Session Summary Question: Can you discuss the level of timing or one-time margin and cash flow dynamics in the quarter? - Management noted that additional working days generated around $20 million in cash, which should be normalized moving into FY26 [35] Question: Can you provide an update on the multi-year margin progression and synergy targets? - The long-term goal is to achieve 8.5%-9% margins by FY28, with expected margin expansion of 20 basis points in FY26 [38][42] Question: How do you view the timing and magnitude of potential divestitures? - Management is currently excited about the entire portfolio and will evaluate non-core assets during strategic planning [50] Question: Can you elaborate on the nuclear opportunities and their impact on margins? - The nuclear energy market represents about 17% of the business today, with strong margins expected from both front-end and back-end nuclear work [76] Question: What is the expected impact of the government shutdown on FY26? - Management anticipates a 1% impact from reduced spending in Q1 due to the government shutdown, but remains confident in the underlying business trajectory [84]

Investor Day November 20, 2025 Welcome and Opening Remarks Kimberly Esterkin VP, Investor Relations Safe Harbor Certain statements made in this news release are "forward-looking statements" within the meaning of Section 27A of the Securities Exchange Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking information includes estimates of the company's future financial and operating performance. Certain data and statements in this presentation, other than ...

Core Insights - Edge Total Intelligence Inc. (EdgeTI) and Sabel Systems Technology Solutions, LLC have announced an expanded strategic partnership aimed at accelerating the deployment of digital engineering and operational digital-twin solutions in the defense sector [1][3][6] - The partnership is designed to help manufacturers and defense primes meet stringent government requirements, shorten acquisition timelines, and enhance proposals for government contracts [6][7] Partnership Highlights - The collaboration combines EdgeTI's edgeCore™ platform with Sabel's engineering expertise to create secure and operationally focused digital twins for defense applications [4][8] - Immediate joint activities include scoping pilot programs for naval shipyards and developing measurable KPIs related to production throughput and quality [15] Strategic Rationale - The partnership aims to deliver interoperable digital twins and production controls that can de-risk demonstrations required by program offices and integrators [6][8] - By leveraging Industry 4.0 technologies such as IoT, robotics, and AI-enabled analytics, the partnership seeks to reduce production cycle times and lower sustainment costs [8] Company Background - EdgeTI specializes in real-time digital operations and decision intelligence solutions, utilizing its edgeCore™ platform to create immersive digital twins [11] - Sabel Systems, founded in 2001, focuses on digital engineering and lifecycle solutions to enhance technology adoption and operational readiness in defense environments [10]

Core Insights - The upcoming ISG Provider Lens report will evaluate service providers that enhance product design, operations, and customer experience through integrated, AI-powered tools [1][2] - Enterprises are increasingly focused on building integrated digital ecosystems and seek engineering service providers to unify tools and data sources for large-scale innovation [2][5] Digital Engineering Services - The ISG Provider Lens reports, scheduled for release in May 2026, will cover AI-enabled design and R&D, intelligent operations, and platform-driven engineering [2][4] - The reports will provide enterprise buyers with insights to evaluate current vendor relationships and potential new engagements [3] Research Methodology - ISG has distributed surveys to approximately 90 providers and will produce three quadrants representing digital engineering services for large and midsize organizations [5] - The study will include geographically focused reports covering the global digital engineering services market, particularly in the U.S. and Europe [6] Service Provider Evaluation - The three quadrants of evaluation include: - Augmented Design and R&D Services, focusing on AI-enabled design solutions [8] - Intelligent Operations and Connected Experiences, assessing providers enabling adaptive operations [8] - Integrated Platform and Application Services, covering providers that manage cloud-native digital platforms [8] Customer Experience Data - The 2025 ISG Provider Lens evaluations will feature expanded customer experience data, measuring actual enterprise experiences with specific provider services [9] About ISG - ISG is a global AI-centered technology research and advisory firm, serving over 900 clients, including 75 of the world's top 100 enterprises [11]