Leidos Q4 FY25 Earnings Conference Call February 17, 2026 FORWARD-LOOKING STATEMENTS Certain statements in this release contain or are based on "forward- looking" information within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by words such as "expects," "intends," "plans," "anticipates," "believes," "estimates," "guidance" and similar words or phrases. Forward-looking statements in this release include, among others, estimat ...

Core Thesis - RTX Corporation is positioned favorably within the missile defense sector, particularly with the Golden Dome concept, leveraging its existing Raytheon business capabilities [2][4][8] Company Overview - RTX Corporation operates in the aerospace and defense industry, providing systems and services to commercial, military, and government clients both domestically and internationally [2] - The company's share price was reported at $199.88, with trailing and forward P/E ratios of 40.21 and 30.03 respectively [1] Product and Service Capabilities - RTX's product portfolio includes essential components for missile defense, such as Patriot interceptor batteries, advanced phased-array radars, and battle management software, aligning with the broader architecture of layered missile defense [3][4] - The company can operate across both sensing and kinetic layers of missile defense, enabling it to address a wide range of threats, including aircraft, cruise missiles, ballistic missiles, and drones [4] Competitive Advantage - RTX's advantages stem from its scale, reliability, and repeatability in manufacturing and deploying defense systems, allowing for incremental capacity expansion while maintaining readiness [5] - The company’s systems are designed for continuous upgrades and interoperability, ensuring long-term demand through modernization cycles rather than one-off procurement [7] Market Positioning - As the defense landscape shifts towards pragmatic, layered homeland defense models, RTX's existing portfolio becomes increasingly central to the execution of these strategies [6][8] - The company is expected to benefit disproportionately from sustained missile defense investments, positioning it as a core enabler of realistic defense architectures [8]

Group 1 - Kongsberg Gruppen, a Norwegian defense company, has secured a significant order worth 16 billion crowns (approximately $1.67 billion) from Poland for drone defense systems [1]

Group 1 - The company, FutureGen Industries Corp., is updating shareholders on its expanded investment mandate focused on innovation-driven, high-growth technology sectors [1] - The company intends to advance its strategy by pursuing investment exposure in targeted industries such as defense systems, quantum computing, artificial intelligence, robotics, and biotechnology [1]

Core Insights - Voyager Technologies, Inc. (NYSE:VOYG) is involved in developing defense systems, intelligence solutions, and advanced communication technologies, alongside space propulsion and mission management products [1] Group 1: Investment Sentiment - Jim Cramer expressed skepticism about investing in VOYG, citing its significant financial losses as a reason for not recommending the stock [1] - Cramer indicated a shift in his investment strategy, stating he would not invest in speculative stocks unless they are profitable [1] Group 2: Market Position and Comparisons - Despite acknowledging the potential of VOYG, the article suggests that certain AI stocks may offer better upside potential and lower downside risk [1]

Financial Highlights - Elbit Systems' market capitalization is approximately $24 billion[7] - The company's order backlog reached $252 billion as of September 30, 2025[7] - Revenues for the Last Twelve Months (LTM) Q3 2025 were $77 billion, compared to $65 billion in LTM Q3 2024[7] - Non-GAAP diluted net earnings per share (EPS) for Q3 2025 was $335, a 52% increase from $221 in Q3 2024[24] - Free cash flow in Q3 2025 was a positive $96 million, a significant increase of $100 million compared to $5 million in Q3 2024[24] - The company distributed $89 million in dividends to shareholders in 2024[48] Revenue Breakdown (LTM 2025) - Europe accounted for 27% of revenues[29] - Asia-Pacific (APAC) contributed 15% to revenues[29] - North America represented 21% of revenues[30] - Israel accounted for 33% of revenues[30] Growth and Backlog - The company experienced a backlog Compound Annual Growth Rate (CAGR) of 18% and a revenue CAGR of 11% from 2020 to 2025[33] - The order backlog increased from $2261 billion in 2024 to $2521 billion in LTM Q3 2025[33] Capital Allocation - Elbit Systems invested $466 million in Research and Development (R&D) in 2024[45] - Capital expenditures (CAPEX) amounted to $215 million in 2024[46]

Core Insights - Leidos Holdings, Inc. (LDOS) reported third-quarter 2025 adjusted earnings of $3.05 per share, exceeding the Zacks Consensus Estimate of $2.61 by 16.9% and improving 4.1% from $2.93 in the prior-year quarter [1] - Total revenues reached $4.47 billion, surpassing the Zacks Consensus Estimate of $4.27 billion by 4.8% and reflecting a year-over-year growth of 6.7% driven by increased demand across all customer segments, particularly in Defense Systems [2] - The company’s total backlog increased to $47.66 billion from $45.51 billion at the end of the first quarter of 2025, with $9.06 billion of this amount being funded [3] Financial Performance - The cost of revenues rose 6.4% year over year to $3.65 billion, while adjusted operating income improved to $535 million from $516 million in the year-ago quarter [4] - Interest expenses increased to $51 million from $46 million in the previous year [4] - Cash and cash equivalents totaled $974 million as of October 3, 2025, compared to $849 million as of January 3, 2025, while long-term debt rose to $4.63 billion from $4.05 billion [9] Segment Performance - National Security and Digital segment revenues increased 8% year over year to $2.02 billion, with adjusted operating income rising to $191 million [5] - Health & Civil segment revenues reached $1.30 billion, up 6.2% year over year, with adjusted operating income totaling $328 million [6] - Commercial & International segment revenues decreased by 1.2% to $571 million, while Defense Systems segment revenues increased by 11.5% to $582 million [7][8] Guidance - Leidos has raised its 2025 adjusted earnings guidance to a range of $11.45-$11.75 per share, up from the previous projection of $10.15-$10.45, with the Zacks Consensus Estimate for earnings at $11.41 per share [10] - The revenue outlook for 2025 remains steady at $17.00-$17.25 billion, with the Zacks Consensus Estimate for revenues at $17.15 billion [11]

Leidos Q3 FY25 Earnings Conference Call NOVEMBER 4, 2025 FORWARD-LOOKING STATEMENTS Certain statements in this release contain or are based on "forward- looking" information within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by words such as "expects," "intends," "plans," "anticipates," "believes," "estimates," "guidance" and similar words or phrases. Forward-looking statements in this release include, among others, estimate ...

Core Insights - Baron Discovery Fund's performance in Q3 2025 showed a year-to-date increase of 10.75%, underperforming the Russell 2000 Growth Index which returned 11.65% [1] - The fund's Q3 return was 2.85%, significantly lagging behind the Index's 12.19% return [1] Company Highlights - Karman Holdings Inc. (NYSE:KRMN) is recognized for its role in designing, testing, manufacturing, and selling mission-critical defense systems [2] - The stock of Karman Holdings Inc. experienced a one-month return of 16.86% and a three-month gain of 65.94%, closing at $85.79 with a market capitalization of $11.352 billion on October 29, 2025 [2] - The company benefits from increased defense spending, particularly in flagship defense programs and emerging segments like hypersonics, positioning itself as a critical supplier in the defense industry [3] - Karman Holdings Inc. boasts margins more than double the industry average due to its focus on technically complex systems for prime contractors [3] Investment Sentiment - Karman Holdings Inc. was held by 21 hedge fund portfolios at the end of Q2 2025, a decrease from 32 in the previous quarter [4] - While Karman Holdings Inc. is viewed as a potential investment, the company is compared unfavorably to certain AI stocks that are believed to offer greater upside potential and lower downside risk [4]

Core Insights - Saab AB reported an earnings per share (EPS) of $0.18, missing the estimated $0.20, with actual revenue of approximately $1.68 billion compared to the expected $2.57 billion [1][6] - Despite the earnings miss, the company raised its full-year sales guidance due to strong demand in the defense sector and a record-high order backlog [3][4][6] - Financial metrics indicate a price-to-earnings (P/E) ratio of 54.81, reflecting investor confidence despite the earnings shortfall [5][6] Financial Performance - The third-quarter operating profit increased by 16%, driven by heightened military spending, although it was slightly below expectations [4] - The company has a low debt-to-equity ratio of 0.25, indicating manageable debt levels, and a current ratio of 1.30, suggesting good short-term liquidity [5] Market Position - Saab's strong order backlog and the global emphasis on enhancing military capabilities position the company favorably in the defense market [3]