Northrop Grumman 2026 Conference Summary Company Overview - **Company**: Northrop Grumman (NYSE: NOC) - **Date**: February 18, 2026 - **Speaker**: Kathy Warden, CEO Key Industry Insights - **Defense Demand**: There is an unprecedented demand cycle in the defense sector globally, expected to sustain over time [2][3] - **Investment Strategy**: Northrop Grumman has been investing in capabilities and capacity to meet the needs of the U.S. and allies [2][3] - **Financial Performance**: - 2026 guidance indicates mid-single-digit growth - Segment operating margins expected to be low- to mid-11% - Free cash flow guidance reaffirmed at $3.1 billion to $3.5 billion [3][4] Core Business Segments Aeronautics Systems - **B-21 Program**: - Performing exceptionally well, with a focus on transitioning to production - Anticipated investment of $2 billion to $3 billion to support accelerated build rates [10][11] - **F-35 Program**: - Steady production with 1,500 center fuselages delivered - Focus on performance and cost targets [13][14] Unmanned Systems - **Portfolio Expansion**: - Legacy in unmanned aircraft for surveillance and reconnaissance - Engaging in collaborative combat aircraft development [15][16] - **International Demand**: Growing interest in unmanned systems and capabilities [17] Missile Defense - **Growth Potential**: - Missile defense capabilities account for nearly 10% of revenue and are expected to grow [6][24] - IBCS program in production, supporting both U.S. and international defense needs [25][26] Mission Systems - **Revenue Growth**: - Consistent mid-single-digit growth, with a strong year of 10% growth last year - Driven by recapitalization of aircraft and demand for microelectronics [28][29] Space Systems - **Growth Drivers**: - Significant backlog and opportunities in space-based surveillance and communications - Golden Dome initiative expected to drive future growth [39][40][42] International Opportunities - **Munitions and Missile Defense**: High international demand for munitions and missile defense systems, particularly in Europe [46][47] - **Export Growth**: Tripled the number of exportable product lines since the CEO took office, focusing on sustainable international growth [48] Capital Expenditure and Financial Strategy - **CapEx Outlook**: Increased due to demand for B-21 and munitions ramp-up; prepared to invest in future opportunities [49][50] - **Dividend Policy**: Commitment to maintaining a competitive dividend while investing in growth opportunities [58][59] M&A and Portfolio Management - **M&A Strategy**: Currently no gaps identified that require M&A; focus on organic growth and internal investment [67][68] - **Divestitures**: No significant divestitures planned; focus on maintaining a technology-rich portfolio [72] Conclusion - Northrop Grumman is positioned to capitalize on unprecedented demand in the defense sector through strategic investments, a robust portfolio, and a commitment to performance and execution [74]

Financial Data and Key Metrics Changes - Overall sales for Q4 2025 reached $947 million, a 15% increase year-over-year, driven by 11% organic growth and contributions from the INC Solutions acquisition [4][5] - Operating income increased by 14%, with an operating margin of 19.7% [5][6] - Diluted earnings per share grew by 16% year-over-year, primarily due to higher A&D sales [5][6] - Free cash flow was strong at $315 million, up 13%, reflecting a 224% conversion rate [6] - For the full year 2025, diluted earnings per share increased by 21%, and adjusted free cash flow reached a record $554 million [7][8] Business Line Data and Key Metrics Changes - Aerospace and Defense (A&D) markets saw a 16% growth, with commercial aerospace sales increasing over 20% [5][6] - The defense electronics segment experienced a 17% sales growth, driven by increased demand for tactical communications equipment [12][14] - The naval and power segment's sales increased by 21%, supported by strong revenue growth in naval defense and aftermarket revenues [15][16] Market Data and Key Metrics Changes - The overall order book reached a record $4.1 billion, up 10% year-over-year, with a book-to-bill ratio of nearly 1.2 times [8][10] - New orders in Q4 increased by 18%, reflecting solid demand in naval defense and commercial nuclear markets [6][10] - Commercial nuclear sales showed tremendous growth, driven by strong demand for aftermarket equipment and advancements in SMR designs [9][21] Company Strategy and Development Direction - The company continues to execute its "Pivot to Growth" strategy, focusing on operational and commercial excellence to drive sales and profitability [4][10] - Investments in research and development are being accelerated to support future organic growth, with a commitment to grow R&D faster than sales over time [7][10] - The company is positioned to benefit from increased global defense spending and the U.S. government's focus on nuclear energy dominance [32][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the future, projecting organic sales growth of 6%-8% for 2026, with operating income growth expected to outpace sales growth [10][11] - The company anticipates another year of record free cash flow generation, with a target of $575 million-$595 million for 2026 [29][30] - Management acknowledged challenges in the defense market due to timing delays but remains optimistic about long-term growth opportunities [8][10] Other Important Information - The company executed a record $465 million in share repurchases in 2025 and increased its annual dividend for the ninth consecutive year [10] - Capital expenditures are projected to increase by more than 25% year-over-year, reflecting ongoing investments to support growth [29][30] Q&A Session Summary Question: Exposure to missile programs and growth opportunities - Management indicated that while there is some exposure to missile telemetry and flight test instrumentation, the primary focus remains on broader defense capabilities aligned with U.S. military priorities [43][44] Question: Clarification on expected AP1000 orders - Management stated that the first orders could come from either European customers or the U.S., with ongoing discussions with Westinghouse regarding production ramp scenarios [46][47] Question: Free cash flow guidance and working capital dynamics - Management highlighted improvements in working capital management, with a target of approximately 18% working capital as a percentage of sales for 2026 [55][57] Question: C-17 order timing and defense electronics bookings - Management confirmed that the C-17 order was booked in Q1, and noted that delayed bookings in defense electronics were due to various timing issues [60][61] Question: Operational and commercial excellence initiatives - Management emphasized that operational excellence remains a core focus, with ongoing initiatives expected to contribute positively to margins in 2026 [68][72]

Financial Data and Key Metrics Changes - The company reported a revenue increase of 11% year-over-year, reaching a record $464 million for Q2 [4][6] - Non-GAAP adjusted EPS for Q2 was $2.58, marking a significant increase [4] - Operating cash flow improved to $62 million, with expectations for stronger cash flow in calendar 2026 [4][18] - Gross margin for Q2 was 33%, down from the previous year due to a less favorable revenue mix [14] Business Line Data and Key Metrics Changes - Security division revenues increased by 15% year-over-year to $335 million, driven by higher service revenues and RF business growth [13] - Optoelectronics and Manufacturing division achieved a 12% revenue increase to $113 million, setting a new Q2 record [14] - Healthcare division faced challenges, with sales remaining soft, but the company is focused on long-term value creation [10][11] Market Data and Key Metrics Changes - The overall backlog remained stable at $1.8 billion, with expectations for strong demand in the coming months [24] - The company is seeing increased international demand, particularly in the Middle East and the U.S. [66] Company Strategy and Development Direction - The company is committed to innovation, with increased R&D spending to enhance product offerings, particularly in the Security division [15] - Expansion of RF operational footprint in Texas to increase production capacity and operational efficiency [9] - The company is focused on long-term growth opportunities, particularly in the Security and Optoelectronics sectors [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a strong second half of fiscal 2026, despite challenges in the Healthcare division [11][22] - The anticipated revenue headwind from Mexico contracts is expected to be most significant in Q3, with a rebound in Q4 [20][40] - Management highlighted the importance of government contracts and international orders for future growth [25][66] Other Important Information - The company raised its fiscal 2026 non-GAAP EPS guidance to a range of $10.30-$10.55, reflecting a year-over-year growth of 10%-13% [20] - The company completed a convertible notes transaction, raising $575 million to enhance liquidity and financial flexibility [19] Q&A Session Summary Question: Orders activity in Security was softer than expected - Management acknowledged that some orders were delayed due to the government shutdown but remain optimistic about the pipeline [24] Question: Details on the IDIQ contract with Golden Dome - Management indicated that while timing is uncertain, they are well-positioned for future orders related to this significant contract [25][26] Question: Interest expense outlook - Management expects a decrease in interest expense from Q2 to Q3 due to the paydown of the revolver [27] Question: Cash flow expectations - Management anticipates strong free cash flow driven by the normalization of receivables from Mexico [34] Question: Margin outlook and service revenue growth - Management expects service revenue growth to outpace product revenue growth, leading to potential margin expansion [36][37] Question: Pipeline for aviation market - Management confirmed a strong pipeline in the aviation market, with ongoing opportunities despite some delays [44] Question: International demand for Security products - Management noted increased interest from various regions, particularly the Middle East and the U.S. [66] Question: Impact of funding issues on revenue outlook - Management stated that current funding issues are not expected to significantly impact revenue or cash outlook [67]

Financial Performance - The company reported Q2 revenues of $464 million, an increase of 11% year-over-year, setting a Q2 record [4][13] - Non-GAAP adjusted EPS reached a record of $2.58, reflecting strong earnings growth [4] - Operating cash flow was solid at $62 million, with expectations for even stronger cash flow in calendar 2026 [4][19] Business Segment Performance - The security division achieved revenues of $335 million, up 15% year-over-year, driven by higher service revenues and RF business growth [13][14] - Optoelectronics and Manufacturing division revenues increased 12% year-over-year to $113 million, marking a new Q2 record [14][10] - The Healthcare division faced challenges, with sales being soft in Q2, but the company is focused on long-term value creation through intensified sales efforts and new product development [11][12] Market Performance - The security division's bookings were lower than expected due to delays from the U.S. government shutdown and international customer pushouts, but the pipeline remains strong [7][26] - The RF business is expanding with new contracts, including a $30 million order for naval operations and participation in the Golden Dome missile defense initiative [9][10] - The optoelectronics division is benefiting from OEMs diversifying supply chains away from China, with strong demand across various industries [11] Company Strategy and Industry Competition - The company is committed to innovation, as reflected in increased R&D spending, which rose to $19.8 million in Q2 [16][17] - The expansion of manufacturing facilities in Texas aims to enhance production capacity and operational efficiency in the RF sector [10] - The company is well-positioned in the security market, with a broad range of offerings and a healthy backlog, providing confidence for future growth [6][10] Management Commentary on Operating Environment and Future Outlook - Management expressed optimism about the second half of fiscal 2026, anticipating strong cash flow and operational excellence [24][23] - The company raised its fiscal 2026 non-GAAP EPS guidance to a range of $10.30-$10.55, reflecting expected growth despite challenges from reduced revenues related to Mexico contracts [21][22] - Management acknowledged the impact of the government shutdown on order timing but remains confident in the pipeline and future opportunities [35][36] Other Important Information - The company completed a convertible notes transaction, raising $575 million, which enhances liquidity and financial flexibility [20] - The balance sheet remains solid, with net leverage at approximately 2.2 [20] Q&A Session Summary Question: Orders activity in security was softer than expected - Management noted that orders were pushed due to the government shutdown, but the pipeline remains strong and they expect a robust next six months [26] Question: Details on the Golden Dome contract - Management indicated that while timing is uncertain, they feel well-positioned for future orders related to the Golden Dome initiative [27][28] Question: Interest expense outlook - Management anticipates a decrease in interest expense from Q2 to Q3 due to the paydown of the revolver [29] Question: Potential for additional share purchases - Management confirmed that stock buybacks remain an option, with a sizable buyback already executed in Q2 [31] Question: Impact of government shutdown on RFP timing - Management stated that while some funds are flowing in, most significant impacts will be felt later in calendar 2026 [34] Question: Mexico DSO and cash flow expectations - Management expects significant free cash flow conversion as Mexico receivables normalize, driving down DSO [36] Question: Service revenue growth potential - Management is optimistic about service revenue growth outpacing product revenue growth, leading to margin expansion [38][39] Question: Revenue guidance for the back half of the year - Management indicated that Q4 is expected to be significantly stronger than Q3 due to the timing of Mexico revenues [42][43] Question: Aviation market pipeline - Management confirmed that the aviation market remains strong, with a healthy pipeline despite some delays [45][46] Question: International demand for security products - Management noted strong international demand, particularly in the Middle East, with various countries increasing focus on security [67] Question: Funding impact on revenue outlook - Management stated that near-term funding issues are not expected to significantly impact revenue or cash outlook [68]

Company Overview - York Space Systems began trading publicly on the New York Stock Exchange, opening at $38, which is an 11.7% increase from its offering price of $34, valuing the company at $4.75 billion [1] Core Project - The company is positioned as a key contributor to President Trump's 'Golden Dome' project, which aims to integrate disparate systems for better communication [2] - York Space Systems has already delivered low-earth orbit satellites for the U.S. Space Development Agency, successfully launching 21 satellites in September [2] Industry Trends - The space technology sector has been gaining momentum, with expectations for significant growth in 2026, following several IPOs in the previous year, including companies like Firefly Aerospace, Voyager Technologies, and Karman Holdings [3]

Financial Data and Key Metrics Changes - Revenue for 2025 was $21.9 billion, representing a 5% organic growth, with adjusted segment operating margin at 15.8%, up 40 basis points [16] - Non-GAAP EPS increased to $10.73, an 11% rise over 2024, while adjusted free cash flow grew to $2.8 billion, over 20% increase [16] - For Q4, revenue was $5.6 billion, up 6% organically, with a segment operating margin of 15.7%, also up 40 basis points [16] Business Line Data and Key Metrics Changes - Communications Systems (CS) generated $5.7 billion in revenue for 2025, with a margin of 25.2%, reflecting 4% growth and 50 basis points margin expansion [17] - Integrated Mission Systems (IMS) reported $6.6 billion in revenue, achieving 8% organic growth with a margin of 12.2% [17] - Space and Airborne Systems (SAS) delivered $6.9 billion in revenue, with a margin of 12.3% [18] - Aerojet Rocketdyne (AR) achieved 12% organic revenue growth, exceeding $2.8 billion with a margin of 12.5% [19] Market Data and Key Metrics Changes - The company ended 2025 with a record backlog exceeding $38 billion and a Book-to-Bill ratio of 1.3 [11] - Key awards included a $2.2 billion contract from South Korea for airborne early warning jets and an $850 million contract for 18 satellites for missile defense [12][14] Company Strategy and Development Direction - The company is focusing on evolving its business model, aligning its portfolio with defense priorities, and pursuing strategic partnerships to drive growth [4][5] - Plans include an IPO for the Missile Solutions business in the second half of 2026, with the Department of War as an anchor investor [5][20] - The company aims to enhance production capacity for missile systems and solid rocket motors to meet increasing demand [8][10] Management's Comments on Operating Environment and Future Outlook - Management highlighted a complex and rapidly evolving defense environment, emphasizing the need for speed and execution [8] - The company anticipates continued double-digit growth for the Missile Solutions business, driven by strong demand signals [30] - Guidance for 2026 includes revenue expectations of $23 billion to $23.5 billion, with a 7% organic growth rate at the midpoint [20] Other Important Information - The company has reorganized its business segments from four to three to better align technology and business models [5] - The LHX NeXt program has exceeded its $1 billion savings commitment one year ahead of schedule [14] Q&A Session Summary Question: Long-term agreements for Missile Solutions - Management confirmed ongoing discussions with the Department of War regarding long-term agreements and expressed optimism about the potential for significant growth in the Missile Solutions business [26][27][30] Question: CapEx expectations - Management indicated a planned increase in CapEx to about 2.5% of sales for 2026, with a focus on modernizing production capabilities [32][33] Question: Government stake in Missile Solutions - Management clarified that the government is expected to hold a single-digit ownership stake in the Missile Solutions business [40] Question: Revenue outlook for RemainCo - Management projected solid mid-single-digit growth for RemainCo, with expectations for increased defense budgets to drive further growth [46][49] Question: Tactical radios funding - Management acknowledged reductions in funding for tactical radios but expressed optimism about future growth opportunities in this area [60][76]

Table of Contents As filed with the Securities and Exchange Commission on January 23, 2026. No. 333-291581 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 AMENDMENT NO. 3 TO FORM S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 Yellowstone Midco Holdings II, LLC to be converted as described herein to a corporation named York Space Systems Inc. (Exact name of registrant as specified in its charter) Delaware 3761 39-4190941 (State or other jurisdiction of incorporation or or ...

Summary of Space Technology Industry Conference Call Industry Overview - The Space Technology industry is viewed as Attractive for 2026, with favorable trends from 2025 expected to continue [1][4][8] - The industry experienced record launch activity in 2025, with over 315 successful launches, representing a year-over-year increase of over 20% [3][20] - Significant growth in large constellations, including Amazon's Leo and SpaceX's Starlink, was noted [3] Key Companies and Ratings Changes - **Rocket Lab USA Inc (RKLB)**: Upgraded to Overweight (OW) from Equal-weight (EW) with a price target (PT) increase from $67 to $105, driven by improved risk-reward dynamics and a strong catalyst path [7][44] - **MDA Space Ltd (MDA)**: Upgraded to OW from EW with a PT increase from C$32 to C$46, reflecting a favorable valuation and growth potential [7][13] - **Iridium Communications Inc (IRDM)**: Downgraded to EW from OW with a PT decrease from $37 to $24 due to expected uncertainty amid strategic pivots [7][62] - **Firefly Aerospace Inc (FLY)**: PT raised from $27 to $33, with expectations for significant launches in 2026 [7][39] - **Viasat Inc (VSAT)**: PT increased from $12 to $51, reflecting a shift in valuation methodology [7][61] - **Gogo Inc (GOGO)**: PT lowered from $15 to $8, anticipating a low-growth year [7][11] Market Dynamics - The convergence of Space and Defense markets is expected to continue, with potential for significant contracts related to the Golden Dome initiative [8][19] - Geopolitical tensions, particularly between the US and China, are driving interest in sovereign solutions, benefiting commercial space companies [3][8] - The Direct-to-Device (D2D) market is maturing, with expectations for new services and spectrum scarcity to remain a focus [16] Launch Market Insights - The launch market is characterized by a few proven players, with RKLB expected to increase its launch cadence significantly in 2026 [10][35] - RKLB aims for 28 launches in 2026, up from 21 in 2025, while FLY is targeting 6 launches, a significant increase from 1 in 2025 [10][39] Competitive Landscape - The competitive landscape is shifting, with new entrants and established players facing pressure from emerging technologies and services [58] - IRDM is pivoting to address competition from LEO-based offerings, particularly from SpaceX's Starlink, which has led to a strategic shift and increased execution risk [62][67] - GOGO is also facing competitive pressures, particularly from NetJets' plans to implement Starlink [59] Financial Performance and Projections - The Space industry is expected to see continued growth, with RKLB projecting a compound annual growth rate (CAGR) of 40% through 2030 [56] - VSAT's stock performance was notably strong in 2025, driven by contract wins and a positive market reception [57] - The overall sentiment in the market is cautious, with some companies facing significant challenges amid competitive pressures and strategic pivots [62][68] Conclusion - The Space Technology industry is positioned for growth in 2026, with several companies receiving upgrades based on favorable market conditions and strategic developments. However, challenges remain, particularly for companies like IRDM and GOGO, which are navigating increased competition and strategic shifts.

Table of Contents As filed with the Securities and Exchange Commission on January 16, 2026. No. 333-291581 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 AMENDMENT NO. 2 TO FORM S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 Yellowstone Midco Holdings II, LLC to be converted as described herein to a corporation named York Space Systems Inc. (Exact name of registrant as specified in its charter) Delaware 3761 39-4190941 (State or other jurisdiction of incorporation or or ...

Core Concept - The revival of the missile defense system concept, termed the "Golden Dome," by President Trump aims to create a protective shield over America, capable of intercepting missiles globally [1] Cost Estimates - Initial cost estimates for the Golden Dome project started at $25 billion for the design phase, but actual construction costs could escalate to as high as $175 billion [4] - A significant contract worth $151 billion was announced by the U.S. Department of Defense for the "Scalable Homeland Innovative Enterprise Layered Defense (SHIELD)" project, which is part of the Golden Dome initiative [5] Project Administration - The SHIELD project will be administered by the U.S. Missile Defense Agency, and the funding will be structured as a "multiple award, indefinite-delivery/indefinite-quantity contract," allowing for flexibility in subcontracting and funding allocation [7]