Question · Q2 2026
Chris Byrnes inquired about the C2B material sales mix, specifically whether the current 60/40 lower to higher margin ratio would remain constant as Patriot missile production ramps up, or if a higher mix of converted, higher-margin material could be achieved. He also asked about the expected timing for this shift.
Answer
Chairman and CEO Brian Shore explained that the current sales ratio is skewed by OEM stockpiling of C2B fabric, but eventually, the fabric will be converted into higher-margin C2B material for Patriot missile systems, balancing the ratio. He noted that the C2B material requalification is largely complete, which should enable increased material production and a pickup in the next quarter, though broader supply chain ramp-up challenges may still exist.