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]

Financial Data and Key Metrics Changes - Revenues for the quarter were $3.6 billion, up 5% or $175 million from the same quarter last year [3] - Segment profit increased to $357 million, up 26% or $73 million from 2024 [3] - Adjusted income from continuing operations was $1.55 per share, compared to $1.40 per share in the same quarter last year [3] - Manufacturing cash flow before pension contributions totaled $281 million, compared to $147 million in the same quarter last year [3] Business Line Data and Key Metrics Changes - Textron Aviation revenues were $1.5 billion, up 10% or $138 million from 2024, driven by higher aircraft revenues and aftermarket parts [14] - Bell revenues were $1 billion, up 10% or $97 million from 2024, primarily due to higher military revenues from the MV75 program [15] - Textron Systems revenues were $307 million, up 2% or $6 million from last year, with an increase in backlog of about $1 billion [11][15] - Industrial revenues decreased to $761 million, down $79 million from last year, primarily due to the divestiture of the powersports business [16] Market Data and Key Metrics Changes - Aviation backlog ended the quarter at $7.7 billion, reflecting strong demand [8][14] - Bell's backlog increased to $8.2 billion, up $1.3 billion from the prior quarter [15] - Textron Systems backlog ended at $3.2 billion, an increase of $980 million from the prior quarter [16] Company Strategy and Development Direction - The company announced the elimination of the Textron Aviation segment as a separate reporting segment, realigning business activities to leverage existing sales capabilities [12] - A new President and CEO, Lisa Atherton, was elected, indicating a focus on internal leadership development [4][5] - The company continues to focus on strong growth in aerospace and defense businesses, with significant investments in new aircraft and technology [7][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand across the aviation portfolio, with expectations for continued growth in aftermarket revenues [23][25] - The company anticipates a strong fourth quarter driven by increased volume and improved margins [65] - Management noted ongoing supply chain improvements, although some critical issues remain [55] Other Important Information - The company repurchased approximately 2.6 million shares, returning $206 million in cash to shareholders during the quarter [19] - Full-year adjusted earnings per share guidance is reiterated to be in the range of $6 to $6.2 [19] Q&A Session Summary Question: Impact of Army's announcement on MV75 program - Management indicated that the announcement would not change the near-term strategy, focusing on the basic aircraft's critical parameters [21][22] Question: Highlights on aviation demand - Management noted strong retail demand across the entire aviation portfolio, with improving margins and significant certification activity [23][24] Question: Update on MV75 program and contract signing - Management clarified that the program is largely cost-plus, with low risk in bringing forward LRIP units [28][30] Question: Long-term margin targets for aviation - Management stated that volume is the biggest lever for improving margins, with solid pricing feedback observed [40] Question: Supply chain issues and revenue forecast - Management acknowledged ongoing supply chain challenges but expressed confidence in achieving the revenue forecast [55][56] Question: Unmanned portfolio performance - Management reported strong demand for unmanned systems and ongoing development of new platforms [71][74] Question: Portfolio reevaluation with management change - Management confirmed that the company continuously evaluates its portfolio for potential acquisitions or disposals [80][81] Question: Demand shifts across business jets - Management indicated that current demand is stable, with capacity constraints affecting delivery mix [84][86]

Financial Data and Key Metrics Changes - Adjusted sales for Q3 were $22.5 billion, up 12% on an adjusted basis and 13% organically year over year [14] - Adjusted segment operating profit increased to $2.8 billion, up 19% year over year, with a consolidated segment margin expansion of 70 basis points [14] - Free cash flow was robust at $4 billion for the quarter, contributing to a full-year outlook of $7 billion to $7.5 billion [15][18] Business Line Data and Key Metrics Changes - Collins sales were $7.6 billion, up 8% adjusted and 11% organically, driven by commercial OE sales up 16% and aftermarket sales up 13% [20] - Pratt's sales reached $8.4 billion, up 16% on both an adjusted and organic basis, with commercial OE sales up 5% and military engine sales up 15% [22][24] - Raytheon reported sales of $7 billion, up 10% on both an adjusted and organic basis, with adjusted operating profit of $859 million, up $198 million year over year [24][25] Market Data and Key Metrics Changes - The book-to-bill ratio for the quarter was 1.63, resulting in a backlog of $251 billion, up 13% year over year [7][28] - New awards in the quarter totaled $37 billion, with $23 billion in defense and $14 billion in commercial orders [7] Company Strategy and Development Direction - The company is focused on executing commitments and driving performance improvements through its core operating system, achieving 10% organic sales growth while keeping headcount flat [8] - Strategic investments include over $600 million in capacity expansion projects, with Raytheon investing $300 million to support growing demand [10] - The company is innovating for future growth, including a hybrid-electric propulsion demonstrator for regional aircraft and next-generation braking systems for the A321XLR [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued strength of global demand for products and services, particularly in commercial aerospace, with passenger air travel expected to grow approximately 5% this year [4] - The full-year adjusted sales outlook has been raised to a range of $86.5 billion to $87 billion, reflecting strong operational performance and market demand [16] - Management anticipates continued top-line growth, margin expansion, and solid free cash flow conversion beyond this year [19] Other Important Information - The company completed the sale of its actuation business and the Collins Simmons Precision Products business for $765 million [15] - The company is strategically using data analytics and AI tools to improve productivity and decision-making across its operations [12] Q&A Session Summary Question: Confidence in delivering LEAP engines to Airbus - Management expressed strong confidence in meeting delivery targets for LEAP engines, citing robust production ramp-up and collaboration with Airbus [32][38] Question: Limitations to growth in Raytheon segment - Management highlighted strong demand and a book-to-bill ratio of 2.27, but emphasized the need for a healthy supply chain to meet production increases [44][45] Question: Margins in Collins - Management noted that tariffs were a significant headwind affecting margins, with efforts underway to mitigate these impacts [85] Question: Top line and bottom line dynamics in Pratt - Management clarified that the uptick in revenue outlook for Pratt was driven by a mix of spare engines and increased defense contracts, with expectations for continued MRO output growth [90] Question: GTF compensation payments and AOG levels - Management confirmed that the financial outlook for GTF compensation payments remains consistent, with no changes to the expected timing for reduced AOG levels [80] Question: Future margin expectations for Raytheon - Management indicated that while current margins are strong, further upside is contingent on supply chain health and production ramp-up capabilities [114]

Financial Performance - Q3 organic sales increased by 5% year-over-year[12] - Segment operating margin rate expanded to 123%[12] - Q3 2025 Diluted EPS increased by 10% from $700 to $767[23] Guidance and Outlook - The company expects 2025 sales of $417 billion to $419 billion[12] - MTM-adjusted EPS guidance increased by $065 to a range of $2565 to $2605[12] - The company reaffirms free cash flow range of $31 billion to $35 billion for 2026[35] Segment Performance - Aeronautics Systems sales increased by 6% from $2961 million to $3142 million[15] - Defense Systems organic sales increased by 19% from $1730 million to $2059 million[15] - Mission Systems sales increased by 10% from $2823 million to $3093 million[15] - Space Systems sales decreased by 6% from $2870 million to $2698 million[15] - Defense Systems segment operating income increased by 46% from $160 million to $234 million[19] - Mission Systems segment operating income increased by 32% from $390 million to $515 million[19]

Core Insights - Kratos Defense & Security Solutions has introduced the "Ragnarök" Low-Cost Cruise Missile (LCCM) system, enhancing tactical strike capabilities for defense applications [1][4][11] Product Overview - The Ragnarök LCCM is designed for the XQ-58 Valkyrie, featuring an under-wing configuration and stowed in the bomb bay, showcasing its tactical versatility [3][6] - It has a range of 500 nautical miles and can carry an 80-pound payload, making it suitable for precision engagement missions [3][8] - The system is engineered for high-altitude operations up to 35,000 feet and has a cruise speed exceeding Mach 0.7 [8] Technological Innovations - The Ragnarök LCCM incorporates advanced engineering features, including a compact design and an innovative wing-folding mechanism for efficient storage and transport [7][14] - The system is compatible with standard 14-inch rack systems and can be carried internally, externally, or on pallets [14] Cost and Production - Estimated production costs for the Ragnarök LCCM are approximately $150,000 per unit when produced in quantities of 100, presenting a strong value proposition for defense applications [10] - The design has completed initial development phases and is ready for production, with Kratos actively engaging defense partners for deployment opportunities [11]

Group 1 - Thales and its partners are in discussions with several European and other nations regarding potential new SAMP/T deals [1] - Denmark has chosen the Franco-Italian air defense system over the U.S. Patriot, indicating a shift in defense procurement preferences [1]