Intuitive Machines (NASDAQ: LUNR ) may be well-positioned for significant growth in the coming years as the organization splits its focus into Department of Defense contracts, potentially leading the way for contract awards as part of the Golden Dome. With LUNR exploring aMichael Del Monte is a buy-side equity analyst with over 5 years of industry experience. Prior to working in the investment management industry, Michael spent over a decade in professional services working across industries that include O& ...

Key Takeaways LDOS aims to support the Golden Dome missile shield with next-gen sensors and AI command systems. With RC2E and GroundAware tech, LDOS boosts decision speed and threat detection in real time. At 13.19X P/E, LDOS trades at a steep discount to peers, with rising 2025-2026 EPS and sales estimates.Intensifying threat from next-generation strategic weapons, particularly cruise missiles and hypersonic missiles, over the past decade, has recently prompted the U.S administration to conceptualize the ...

L3harris Technologies (LHX) FY 2025 Conference May 29, 2025 09:00 AM ET Speaker0 Okay. Good morning. I'm Doug Harned, Bernstein senior global aerospace and defense analyst, and really happy to have with us again Chris Kobacek, chairman and CEO of l three Harris. With us also is Ken Bettingfield, chief financial officer. I think to start, I think I think, Ken, you got a couple things you wanna say, and then we'll go into fireside chat. Speaker1 Yeah. Great. Thanks for having us, Doug. We're excited to be her ...

Financial Data and Key Metrics Changes - The company reported a backlog of 361 F-35 jets, with an additional 150 expected to be added soon, indicating a strong position in production [16] - The F-35 program accounts for approximately 30% of the company's revenues, with production rates expected to remain flat at 156 units per year [29][15] - The company anticipates low single-digit growth in F-35 production and sustainment, with high single-digit growth expected in sustainment as the number of deployed jets increases [30] Business Line Data and Key Metrics Changes - In Aeronautics, the F-35 sustainment is the largest growth factor, alongside F-35 production [12] - The Space segment is seeing growth in strategic missile defense, including hypersonics and fleet ballistic missile programs [12][73] - The Missiles and Fire Control (MFC) segment is expected to experience high single-digit growth, with potential for double-digit growth in some years due to strong demand [49] Market Data and Key Metrics Changes - International sales accounted for 29% of sales in the missiles and fire control segment, with Europe being the largest growth area [51] - The company sees significant opportunities in the Middle East, particularly in air superiority capabilities for Saudi Arabia, Qatar, and UAE [7][9] - The company is focusing on international co-production opportunities, particularly in Europe and Asia Pacific [62] Company Strategy and Development Direction - The company aims to enhance air superiority capabilities and is exploring longer-term production and sustainment agreements to stabilize the supply chain [4][44] - The Golden Dome initiative is a strategic focus, with the company positioned to contribute across various areas, including space sensors and missile defense systems [5][66] - The company is advocating for a shift in government contracting to allow for more flexible and innovative approaches to defense procurement [79][82] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth of defense budgets and the strategic approach of the government, which is expected to benefit the company [11] - The operational challenges include managing legacy contracts and supply chain issues, but the management team is focused on cost, quality, and schedule [6] - The company is optimistic about the future, particularly regarding the integration of new technologies into existing platforms like the F-35 [39] Other Important Information - The company is working on the Tech Refresh 3 (TR3) for the F-35, which is expected to enhance the aircraft's capabilities [22][24] - The company has made commitments to co-produce components in India, demonstrating a long-term partnership strategy [37][38] - The company is exploring the potential for classified programs, which are seen as long-term growth opportunities despite current cost pressures [58] Q&A Session Summary Question: What is the growth outlook for the F-35 program? - The F-35 program is expected to maintain a production rate of 156 units per year, with strong international demand supporting this level even if U.S. orders fluctuate [14][15] Question: How is the company addressing supply chain challenges? - The company is actively working to improve supply chain resilience and is exploring partnerships to mitigate bottlenecks, particularly in solid rocket motors [56][57] Question: What are the expectations for international sales growth? - International sales are expected to continue growing, with a focus on Europe, Asia Pacific, and the Middle East as key regions for expansion [52][53]

Industry Overview - The aerospace defense industry is experiencing growth despite supply-chain challenges, driven by increased defense budgets and positive projections for global air passenger numbers in the second half of 2025 [1][3] - A White House report indicates a proposed 13% increase in U.S. defense spending to $1.01 trillion for fiscal year 2026, which is expected to benefit defense-focused companies [4] - The Zacks-defined Aerospace – Defense Industry ranks in the top 16% of Zacks Industry Rank, suggesting it will outperform the market in the next three to six months [5] Company Summaries GE Aerospace - GE Aerospace is seeing strong demand for commercial engines and propulsion technologies, supported by rising defense budgets and geopolitical tensions [8] - The company raised its dividend by 28.6% to 36 cents per share in February 2025, with expected organic revenue growth in the low-double-digit range for 2025 [9] - GE Aerospace has an expected revenue growth rate of -6.8% and an earnings growth rate of 19.6% for the current year [9] Howmet Aerospace Inc. - Howmet Aerospace is benefiting from robust momentum in the commercial aerospace market and strength in its defense business due to rising defense budgets [10] - The company has a strong liquidity position and expects revenue and earnings growth rates of 8.5% and 28.6%, respectively, for the current year [11] Leidos Holdings Inc. - Leidos Holdings reported strong earnings and revenue growth, with increased contract wins from the Pentagon leading to a solid backlog of $46.30 billion [12][14] - The company is well-positioned to contribute to the development of a next-generation missile defense shield, with expected revenue and earnings growth rates of 2.7% and 4.3%, respectively, for the current year [14] Huntington Ingalls Industries Inc. - Huntington Ingalls is a leading U.S. shipbuilder with a solid order backlog, driven by strong demand for its nuclear-powered aircraft carriers and submarines [15][16] - The company expects revenue and earnings growth rates of 3.3% and 2.5%, respectively, for the current year [17] Vertical Aerospace Ltd. - Vertical Aerospace is focused on designing and manufacturing zero-emission electric vertical takeoff and landing (eVTOL) aircraft, with significant growth potential in the advanced air mobility market [18] - The company has an expected revenue growth rate of 1% and an earnings growth rate of over 100% for the current year [19]