Regarding our order book, new orders increased 18% in the fourth quarter, reflecting nearly 1.2 times book to bill were driven by continued solid demands within our naval defense and commercial nuclear markets. Next, I will highlight our full year 2025 results. We delivered another record financial performance with higher growth in revenue and operating income across all three segments reflecting the underlying demand and the momentum that continues to build across our portfolio. We delivered exceptional ma ...

Curtiss-Wright (NYSE:CW) Q4 2025 Earnings call February 12, 2026 10:00 AM ET Company ParticipantsJim Ryan - VP of Investor RelationsK. Christopher Farkas - EVP and CFOLynn M. Bamford - Chair and CEOConference Call ParticipantsBradley Oyster - AnalystGreg Dahlberg - AnalystKristine Liwag - Equity AnalystLouis DiPalma - AnalystMichael Ciarmoli - AnalystNathan Jones - AnalystTony Bancroft - AnalystOperatorI would now like to turn the call over to Jim Ryan, Vice President of Investor Relations. Please go ahead. ...

Czech defense firm Excalibur International, part of the CSG group, and Türkiye’s defense electronics leader Aselsan have signed a strategic cooperation agreement to establish an EU-based joint venture while simultaneously introducing the Korkut air defence system integrated on the Tatra Force 6×6 wheeled platform. The partnership aims to expand joint defense capabilities for European and global markets. The agreement is a significant step toward strengthening defense cooperation not only in Central and Eas ...

Core Insights - Mercury Systems reported revenue of $232.87 million for the quarter ended December 2025, reflecting a year-over-year increase of 4.4% and a surprise of +12.29% over the Zacks Consensus Estimate of $207.39 million [1] - The company's EPS for the quarter was $0.16, significantly higher than the $0.07 reported in the same quarter last year, resulting in an EPS surprise of +128.57% compared to the consensus estimate [1] Revenue Performance - Net Revenue from Sensor & Effector - Radar was $53.72 million, exceeding the two-analyst average estimate of $34.55 million, with a year-over-year change of +14% [4] - Net Revenue from Sensor & Effector - Electronic Warfare reached $27.48 million, surpassing the average estimate of $20.07 million, marking a year-over-year increase of +14.9% [4] - Net Revenue from Other was reported at $36.85 million, slightly below the average estimate of $39.5 million, showing a year-over-year decline of -11.2% [4] - Total Net Revenue from Sensor & Effector was $105.16 million, compared to the average estimate of $74.32 million, indicating a year-over-year change of +12.9% [4] - Net Revenue from C4I was $90.87 million, slightly below the average estimate of $93.33 million, with a year-over-year change of +2.7% [4] - Net Revenue from Other Sensor & Effector was $23.95 million, exceeding the average estimate of $19.7 million, representing a year-over-year increase of +8.2% [4] Stock Performance - Shares of Mercury Systems have returned +15.5% over the past month, outperforming the Zacks S&P 500 composite's +1.8% change [3] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [3]

Core Insights - The company reported Q2 FY 2026 results that exceeded expectations, showcasing solid year-over-year growth in backlog, revenue, adjusted EBITDA, and free cash flow [1][4][18] - Key priorities include performance excellence, driving organic growth, expanding margins, and improving free cash flow [1][5][12][14] Financial Performance - Bookings for Q2 were $288 million with a book-to-bill ratio of 1.23, resulting in a record backlog of nearly $1.5 billion, an increase of 8.8% year-over-year [4][10][18] - Revenue for Q2 was $233 million, reflecting a 4.4% increase compared to the previous year, with first-half revenue up 7.1% year-over-year [4][18][19] - Adjusted EBITDA was $30 million, up 36.3% year-over-year, with an adjusted EBITDA margin of 12.9%, an increase of 300 basis points [5][23][12] - Free cash flow for Q2 was $46 million, significantly ahead of expectations, with net working capital reduced by $61 million year-over-year [5][14][24] Operational Highlights - The company accelerated progress on high-priority customer programs, generating approximately $30 million of revenue planned for Q3 [6][19] - Efforts to increase capacity and automate processes are ongoing, including the expansion of manufacturing space in Phoenix, Arizona [7][8][39] - The focus on customer deliveries led to record first-half revenue and the highest first-half point-in-time revenue since FY 2021 [7][18] Strategic Initiatives - The company is focused on expanding margins through backlog margin expansion and operational optimization, with a goal of achieving adjusted EBITDA margins in the low to mid-twenty percent range [12][13] - Continued emphasis on reducing net working capital, which is now at its lowest level since Q1 FY 2022, with net debt also reduced to $257 million [14][24] - The company anticipates that increased defense budgets and domestic priorities will positively impact demand across multiple programs [11][73] Future Outlook - The company maintains its full-year view for FY 2026, expecting low single-digit annual revenue growth, with Q3 revenue anticipated to be down year-over-year [16][18] - Adjusted EBITDA margin is expected to approach the mid-teens for the full year, with Q4 anticipated to have the highest margin of the fiscal year [17][18] - The company remains optimistic about potential tailwinds from increased global defense budgets and domestic initiatives like Golden Dome [18][73]

Mercury Systems (NasdaqGS:MRCY) Q2 2026 Earnings call February 03, 2026 05:00 PM ET Company ParticipantsAustin Moeller - Director of Equity ResearchBill Ballhaus - Chairman and CEODave Farnsworth - EVP and CFONoah Poponak - Managing Director of Equity ResearchPeter Arment - Managing DirectorTyler Hojo - VP of Investor RelationsConference Call ParticipantsJonathan Ho - Technology AnalystKen Herbert - Senior Aerospace and Defense AnalystKyle Baker - Investment Banking AnalystMichael Ciarmoli - Senior Research ...

Financial Data and Key Metrics Changes - Bookings reached $288 million with a book-to-bill ratio of 1.23, resulting in a record backlog of nearly $1.5 billion, an increase of 8.8% year-over-year [7][21] - Revenue for Q2 was $233 million, reflecting a year-over-year increase of 4.4% [21] - Adjusted EBITDA was approximately $30 million, up 36.3% year-over-year, with an adjusted EBITDA margin of 12.9%, an increase of 300 basis points [7][24] - Free cash flow for the quarter was $46 million, down from $82 million in the prior year, primarily due to accelerated cash receipts [25][28] Business Line Data and Key Metrics Changes - The company recognized $4 million of net adverse EAC changes, consistent with previous quarters, indicating sound execution on development and production programs [9] - Approximately $30 million of revenue was generated from accelerated progress on high-priority programs, primarily planned for Q3 [22] Market Data and Key Metrics Changes - The company noted increased defense budgets globally and domestic priorities like Golden Dome as potential drivers for higher demand across multiple programs [13][19] - Customer conversations are progressing regarding significant increases in quantities for various programs, indicating optimism for future demand [90] Company Strategy and Development Direction - The company is focused on four priorities: performance excellence, driving organic growth, expanding margins, and improving free cash flow [5][10] - Efforts to increase capacity and automate processes are ongoing, with a new 50,000 sq ft factory space in Phoenix to support ramp production [10][41] - The company aims for adjusted EBITDA margins in the low-to-mid 20% range and free cash flow conversion of 50% [17][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the market backdrop and the company's ability to deliver results in line with targeted profiles, despite expecting Q3 revenue to be down year-over-year [18][19] - The company maintains its full-year view for FY 2026, anticipating low single-digit annual revenue growth [18] Other Important Information - The company ended Q2 with $335 million in cash, with net debt reduced to $257 million, the lowest level since Q1 FY 2022 [16][25] - Operating expenses decreased year-over-year, driven by efficiency improvements and headcount reductions [23] Q&A Session Summary Question: How much lower margin backlog is left to convert? - Management indicated that the lower margin backlog will continue to flow through over time, with expectations for improvement as higher margin bookings replace it [33][34] Question: What is the impact of the stop work order on the SCAR program? - Management stated that they do not quantify individual contracts, but the SCAR program is incorporated into their outlook without significant changes [83] Question: What are the potential choke points affecting acceleration? - Management noted that they are actively working with suppliers to address material availability, but cannot guarantee acceleration until materials are confirmed [75][76]

Follow us on LinkedIn, X and Facebook. Forward-Looking Statements Statements in this press release may be considered "forward-looking statements†within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act†), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act†), which are subject to the safe harbor created by such sections. Words such as "expects,†"believes,†"can,†"will,†"estimates,†and variations of such words and similar expressi ...

Financial Data and Key Metrics Changes - In Q4 2025, sales increased by 7.3% year-over-year, while non-GAAP earnings rose by 14.1% [4] - For the full year 2025, sales grew by 7.9% and non-GAAP earnings increased by 11.5% [4] - Free cash flow was approximately $1.1 billion for two consecutive years, with a leverage ratio of 1.4 times at the end of 2025 [5] Business Line Data and Key Metrics Changes - Digital Imaging segment saw a 3.4% increase in Q4 sales, driven by strong performance from Teledyne FLIR, particularly in infrared imaging components [7] - Instrumentation segment's total sales increased by 3.7% in Q4, with marine instruments up by 3.3% and environmental instruments up by 6.1% [8][9] - Aerospace and Defense Electronics segment experienced a significant 40.4% increase in Q4 sales, primarily due to acquisitions and organic growth [9] - Engineered Systems segment revenue decreased by 9.9% in Q4 due to delayed contract awards, but operating margin improved by 259 basis points [10] Market Data and Key Metrics Changes - The unmanned business generated approximately $500 million in 2025, expected to grow by about 10% in 2026 [42][54] - The book-to-bill ratio for Q4 was 1.07, indicating a healthy order intake across segments [41] Company Strategy and Development Direction - The company is focused on operational excellence, strategic acquisitions, and stock repurchases when market conditions are favorable [12] - The acquisition of DD Scientific aligns with the company's "String of Pearls" strategy, emphasizing small, strategic acquisitions [5][60] - The company anticipates growth in long-cycle businesses while expecting no contraction in short-cycle businesses for 2026 [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, projecting revenue of approximately $6.37 billion and non-GAAP earnings of about $23.65 per share [6] - The company expects normal seasonality in 2026, with approximately 48% of sales and 46% of earnings in the first half of the year [6] - Management noted that the strength of longer-cycle businesses is expected to drive growth, with no anticipated decline in short-cycle businesses [12] Other Important Information - Cash flow from operating activities in Q4 was $379 million, compared to $332.4 million in 2024 [14] - The company ended Q4 with $2.12 billion in net debt [15] Q&A Session Summary Question: Can you parse organic versus inorganic growth in revenue? - Management indicated that most growth would be organic, approximately 3.6%, with non-organic growth around 4.2% [20] Question: What are the expectations for digital imaging margins? - Digital imaging margins in Q4 were about 24%, with expectations to improve to around 23.4% in 2026 [21] Question: Can you provide insights on defense awards, specifically the Tranche 3 Tracking Layer? - The program is expected to contribute over $100 million to the company over the next few years [34] Question: What is the book-to-bill ratio across segments? - The book-to-bill ratio for instrumentation is about 1, digital imaging is above 1.06, aerospace and defense is at 1.25, and engineered systems is under 1 [40] Question: What are the demand drivers in test and measurement? - Demand is driven by high-end specialty oscilloscopes and Ethernet traffic capabilities, with some delays expected in protocol analyzers due to chip production [77][78]

Core Insights - Elbit Systems Ltd. has completed the first model of the Sigma NG 155 millimeter howitzer, a self-propelled artillery system designed for next-gen warfare, at its South Carolina plant, emphasizing US production to align with local market demands [1] Group 1: Product Development - The Sigma NG howitzer incorporates US components, which were sent to Israel for assembly and expertise before being returned for installation in the turret system [2] - The Sigma NG is capable of firing all 155 millimeter shells and is similar to the IDF's Roem system, which took Elbit approximately six years to deliver to the IDF [2] Group 2: Market Strategy - The US variant of the Sigma NG is mounted on an Oshkosh 10X10 truck and includes locally sourced components, indicating a strategic move to enhance local production capabilities [3] - Elbit's actions may signal a trend for other Israeli companies to follow suit in the US market, potentially increasing competition and collaboration in defense manufacturing [3]