Core Viewpoint - Critical Infrastructure Technologies Ltd. (CiTech) has signed a Memorandum of Understanding (MOU) with Terma A/S to explore collaboration in integrating radar systems into CiTech's autonomous communications platform for defense and security applications [1][2]. Group 1: MOU Details - The MOU establishes a non-exclusive framework for cooperation between CiTech and Terma, focusing on integrating Terma's radar systems into CiTech's Nexus platform [2]. - The agreement aims to identify commercial opportunities, assess technical feasibility, and collaborate on demonstrations for European defense and security stakeholders [3][4]. Group 2: Areas of Collaboration - Planned demonstrations will showcase the combined capabilities of Terma's radar technology and CiTech's communications platform, targeting defense and security operations in challenging environments [3]. - The collaboration includes exploring commercial opportunities and operational use cases, assessing the feasibility of integration, and preparing for joint demonstrations at key European defense exhibitions [6]. Group 3: Company Backgrounds - Terma A/S, founded in 1949, specializes in mission-critical products for defense, aerospace, and security, with a global presence [7]. - CiTech, listed on the CSE and based in Perth, Australia, focuses on developing autonomous, high-capacity communication technologies for sectors such as mining, defense, and emergency services [9].

Financial Data and Key Metrics Changes - For the full year, adjusted sales were $88.6 billion, up $9 billion year-over-year, or 11% organically, driven by 10% growth in commercial OE, 18% growth in commercial aftermarket, and 8% growth in defense [4] - Adjusted EPS of $6.29 was up 10% year-over-year, and free cash flow was $7.9 billion, up $3.4 billion year-over-year [4][18] - The company ended 2025 with a book-to-bill of 1.56, resulting in a record backlog of $268 billion, up 23% year-over-year [4] Business Line Data and Key Metrics Changes - Collins' sales were $7.7 billion in the fourth quarter, up 3% on an adjusted basis and 8% organically, driven by strength in commercial OE and aftermarket [21] - Pratt & Whitney's sales were $9.5 billion, up 25% on both an adjusted and organic basis, driven by strength across all channels [23] - Raytheon's sales were $7.7 billion in the quarter, up 7% on both an adjusted and organic basis, driven by higher volume on land and air defense systems [24] Market Data and Key Metrics Changes - Commercial air travel is expected to grow again, with global RPKs projected to increase around 5% this year, on top of the 5% seen in 2025 [7] - NATO allies are expected to increase their core defense spending to approximately 3.5% of GDP by 2035, supporting strong demand for defense products [9] Company Strategy and Development Direction - The company is committed to making the right investments to support favorable long-term demand and drive sustainable growth [33] - Increased production rates are expected in 2026, particularly on the A320neo, 737 MAX, and 787 platforms, as well as on business jet and general aviation aircraft [8] - The company plans to invest approximately $10.5 billion in CapEx in 2026, focusing on expanding production capacity and factory automation [15] Management's Comments on Operating Environment and Future Outlook - Demand remains strong, and the company is well-positioned for another year of top-line growth [7] - For 2026, adjusted sales are expected to be between $92 billion and $93 billion, with 5%-6% organic growth year-over-year [9][26] - The company expects adjusted EPS to be between $6.60 and $6.80, with free cash flow projected to be between $8.25 billion and $8.75 billion [10][29] Other Important Information - The company invested over $10 billion in CapEx and R&D in 2025, with a focus on expanding production capacity and factory automation [13] - The GTF Fleet Management Plan is on track, with MRO output up 39% in the fourth quarter and expected to continue growing in 2026 [40] Q&A Session Summary Question: Update on GTF Fleet Management Plan - The financial and technical outlook remains on track, with AOG down over 20% from the highs of 2025, and MRO output is expected to continue improving [38][40] Question: Thoughts on Executive Order for Defense Companies - The company recognizes the responsibility to deliver more and faster, aligning resources with the Department of Defense's mandate to ramp production and invest in capacity [44][46] Question: Portfolio Composition and Monetization Opportunities - The company believes it is well-positioned to meet the ramp in defense and commercial sectors, with a strong balance sheet to support investments [50][52] Question: 2026 Guidance for Pratt & Whitney - The company expects large commercial engine deliveries to grow mid to high single digits, balancing the need to support the flying fleet and new installs [58] Question: Raytheon Segment Growth Rates - The majority of sales increase is coming from land and air defense systems, with a strong backlog supporting the outlook for 2026 [74]

Financial Data and Key Metrics Changes - For the full year 2025, adjusted sales were $88.6 billion, an increase of $9 billion year-over-year, or 11% organically [3] - Adjusted EPS was $6.29, up 10% year-over-year, and free cash flow was $7.9 billion, an increase of $3.4 billion year-over-year [3] - The company ended 2025 with a book-to-bill ratio of 1.56 and a record backlog of $268 billion, up 23% year-over-year [3] Business Line Data and Key Metrics Changes - Commercial OE sales grew by 10%, commercial aftermarket by 18%, and defense by 8% for the full year [3] - In the fourth quarter, Collins' sales were $7.7 billion, up 3% adjusted and 8% organically, driven by commercial OE and aftermarket [17] - Pratt & Whitney's sales were $9.5 billion, up 25% on both an adjusted and organic basis, with commercial OE sales up 28% [19] - Raytheon's sales were $7.7 billion, up 7% on both an adjusted and organic basis, driven by higher volume on land and air defense systems [20] Market Data and Key Metrics Changes - Global RPKs are projected to increase around 5% in 2026, following a similar growth in 2025 [5] - The defense budgets in the Asia-Pacific and Middle East regions are expected to grow at an average of 3%-4% annually over the next five years [8] Company Strategy and Development Direction - The company aims to invest significantly in capacity and technology, with over $10 billion in CapEx planned for 2026 [11] - The strategic focus includes increasing production rates for key aircraft platforms and enhancing operational efficiencies through digital solutions [10] - The company is positioned to leverage its commercial expertise to support defense transformation initiatives [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in strong demand and operational execution, expecting adjusted sales for 2026 to be between $92 billion and $93 billion, with 5%-6% organic growth [9] - Adjusted EPS for 2026 is projected to be between $6.60 and $6.80, with free cash flow expected to be between $8.25 billion and $8.75 billion [9] - The company anticipates continued margin expansion driven by productivity improvements and cost management [9] Other Important Information - The company invested $2.6 billion in CapEx in 2025, focusing on capacity expansion and technology upgrades [12] - The GTF Fleet Management Plan is on track, with MRO output up 39% in the fourth quarter [31] Q&A Session Summary Question: Update on GTF Fleet Management Plan - Management confirmed that the financial and technical outlook remains on track, with AOG down over 20% from highs in 2025 and MRO output significantly improving [30][31] Question: Thoughts on Defense Capital Deployment - Management acknowledged the importance of their products for national security and emphasized their commitment to ramping production and investing in capacity [32][33] Question: Portfolio Composition and Monetization Opportunities - Management expressed confidence in RTX's ability to meet current and future demands, highlighting the competitive advantages of their scale and technology [36][37] Question: 2026 Guidance for Pratt & Whitney - Management provided insights into expected growth rates for large commercial engine deliveries and emphasized the balance between MRO and new installations [39][40] Question: Raytheon Segment Growth Rates - Management indicated that the majority of sales growth in Raytheon is driven by land and air defense systems, with a strong backlog supporting future growth [46][47]

Summary of the Conference Call on Defence in Sustainability Industry Overview - The report focuses on the **Defence in Sustainability** sector, particularly in Europe, highlighting trends and insights for 2026 [2][3]. Key Trends and Insights 1. **Easing of Exclusions**: - Exclusions related to conventional and nuclear weapons are easing, with positioning in Article 9 and Article 8 funds increasing by approximately **5 percentage points** and **10 percentage points**, respectively [2][21]. - Investors are adopting a more nuanced approach towards conventional weapons, allowing exposure to military software and surveillance while maintaining exclusions on combat equipment [15][21]. 2. **Security as a Prominent Theme**: - The **Security** theme generated the highest net inflows in 2025, surpassing even AI and Big Data, and is expected to remain significant in 2026, encompassing national security, energy security, and cybersecurity [10][29]. 3. **Dual-use Technologies**: - There is growing investor interest in dual-use technologies, with some focusing on technologies applicable to both civilian and defence sectors, while others are identifying companies pivoting towards defence markets [30][32]. 4. **Autonomous Weapons Development**: - The development of autonomous weapons is primarily driven by private companies, with public corporates focusing on "wingman" capabilities. Significant deployment is not expected until the mid-2030s [33][35]. 5. **Anti-defence Technologies**: - The focus on cost-effective counter-warfare technologies is increasing due to the declining costs of offensive capabilities, such as low-cost drones. This trend is accelerating demand for scalable defensive solutions [38][39]. 6. **Corporate Restructuring**: - Companies outside traditional aerospace and defence (A&D) sectors are pivoting towards defence, with firms like thyssenkrupp and Indra Sistemas deriving over **5%** of their revenues from defence-related activities. There is also a trend of corporate restructuring to unlock valuation upside [41][43]. Additional Insights - The European Commission's stance on defence investing within sustainability remains unchanged, clarifying that nuclear weapons are not classified as controversial weapons [5]. - The report indicates that European defence spending is projected to reach **3% of GDP by 2030**, implying a **7% CAGR** and total spending exceeding **$700 billion** [47]. - The report highlights the importance of upcoming country-level defence budgets in driving order momentum and earnings estimates for companies in the sector [48]. Conclusion - The Defence in Sustainability sector is evolving with significant trends in exclusions, security themes, dual-use technologies, and corporate restructuring. The insights provided in this report are crucial for understanding the investment landscape and potential opportunities in the defence sector moving into 2026 [2][3][10].

Core Insights - Mobix Labs Inc. will participate in the 2025 Leidos Supplier Innovation & Technology Symposium on August 7, 2025, in Washington, D.C. [1] - The company's wireless division, RaGE Systems, will showcase innovations in RF and wireless technologies, including millimeter-wave sensor development and advanced communication solutions [2][4] - The symposium serves as a platform for collaboration between Leidos technology leaders and strategic suppliers, highlighting advancements in defense and commercial technologies [3] Company Overview - Mobix Labs is a U.S.-based supplier of advanced connectivity solutions targeting aerospace, defense, AI, and 5G infrastructure markets [9] - The company specializes in performance-critical RF, optical, and electromagnetic interference interconnect technologies through proprietary semiconductor IP and vertically integrated manufacturing [9]