Financial Data and Key Metrics Changes - The company reported a top-line growth of 7% for the quarter, with revenue reaching $4.47 billion, and a year-to-date revenue growth of 5% [4][20] - Adjusted EBITDA margin was 13.8%, with adjusted EBITDA of $616 million, reflecting a 3% year-over-year increase [21] - Non-GAAP diluted EPS grew 4% to $3.05, supported by a lower share count [21] - Operating cash flow for the quarter was $711 million, contributing to a free cash flow of $680 million, resulting in a free cash flow conversion ratio of 171% [25] Business Line Data and Key Metrics Changes - National Security and Digital revenues increased by 8% year-over-year, driven by contract awards and increased volumes for defense IT and mission support [22] - Health and Civil revenues grew by 6% year-over-year, with a record non-GAAP operating income margin of 25.7% due to high volumes in managed health services [23] - Defense Systems segment grew by 11% year-over-year, marking its seventh consecutive period of high single to low double-digit growth [24] Market Data and Key Metrics Changes - The company experienced a 27% sequential increase in funded backlog, indicating strong customer demand [16] - The U.S. utilities are expected to invest over $1 trillion in energy infrastructure over the next decade, presenting significant growth opportunities for the company [10] Company Strategy and Development Direction - The North Star 2030 strategy focuses on five growth pillars: space and maritime, energy infrastructure, digital modernization and cyber, mission software, and managed health services [8] - The company is committed to investing in innovation and technology to enhance customer outcomes and drive down costs [6][7] - The divestiture of Varik, a non-core legacy asset, aligns with the sharpened strategic focus of the company [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current government shutdown, noting that most programs remain unaffected [4] - The company raised its guidance for 2025, reaffirming revenue guidance of $17 billion to $17.25 billion and increasing adjusted EBITDA margin guidance [18][26] - Management highlighted a robust pipeline of near-term opportunities valued at $69 billion, with $24 billion in bids awaiting adjudication [16][54] Other Important Information - The company repurchased $100 million worth of shares and accelerated the payoff of $450 million on its term loan [17] - The company plans to continue investing in growth pillars while returning capital to shareholders [18] Q&A Session Summary Question: Thoughts on M&A in the current environment - Management indicated a shareholder-friendly approach to capital deployment, focusing on both organic and inorganic growth opportunities [31] Question: Growth outlook for defense systems - Management highlighted tracking 10 franchise programs expected to deliver about $15 billion in potential value over the next five years [36] Question: Sustainability of health and civil segment margins - Management expressed confidence in sustaining high margins through innovation and investment in technology [45][48] Question: Bid expectations for next year - Management expects a significant increase in bid submissions next year, with a strong pipeline of opportunities [54][55] Question: Impact of the government shutdown on Q4 - Management acknowledged potential risks from the shutdown but remained optimistic about returning to normal operations quickly [70] Question: Recompete contracts for next year - Management noted that it is too early to specify growth expectations for 2026, but several programs are expected to drive growth momentum [86]

Core Viewpoint - The company reported significant growth in revenue for 2024, but continued to face net losses, indicating challenges in profitability despite increased sales [1][2]. Financial Performance Summary - The company achieved operating revenue of 152.37 million yuan in 2024, a year-on-year increase of 48.77% compared to 102.42 million yuan in 2023 [2]. - The net profit attributable to shareholders was -8.71 million yuan, a decline of 317.80% from -2.09 million yuan in 2023 [2]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was -15.11 million yuan, worsening by 132.80% from -6.49 million yuan in 2023 [2]. - The net cash flow from operating activities was 13.98 million yuan, a significant improvement from -73.49 million yuan in 2023, marking a 119.02% increase [2]. Q1 2025 Performance - In the first quarter of 2025, the company reported operating revenue of 17.34 million yuan, reflecting a year-on-year growth of 15.50% from 15.01 million yuan [3][4]. - The net profit attributable to shareholders was 1.13 million yuan, up 25.23% from 905,928.72 yuan in the same period last year [3][4]. - The net profit after deducting non-recurring gains and losses was 998,537.90 yuan, showing a 33.56% increase from 747,607.83 yuan year-on-year [4]. - The net cash flow from operating activities was -116.98 million yuan, worsening from -33.97 million yuan in the previous year, indicating a decline of 244.36% [4]. Fundraising and Use of Proceeds - The company raised a total of 630 million yuan, with a net amount of 569 million yuan after deducting issuance costs, exceeding the original plan by 261 million yuan [5]. - The funds are intended for projects related to national defense information technology, equipment support services, research and testing center construction, and working capital [5].