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CEO Adi Sfadia attributed the raised guidance to improved visibility in both the core business and Stellar Blue, with some new awards contributing revenue into 2026. He detailed the three Stellar Blue earn-out milestones, stating the first was missed, the second has a 'very good chance' of being met, and the third is too early to call. Sfadia highlighted Iris Squared as a top priority and noted that business with the newly merged Intelsat/SES continues with strong momentum.

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CEO Adi Sfadia explained that the Boeing line-fit program is in the certification process, with qualification expected in the next 2-3 quarters. Regarding Peru, he noted that while the annual revenue run rate is expected to be $45-$50 million, Q1 was low due to project renewal delays, which are anticipated to resolve in Q2 or Q3, with a significant hardware delivery also expected in Q3.

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CEO Adi Sfadia described IRIS2 discussions as being in early stages, with RFPs expected around mid-2025. He detailed a strong defense pipeline driven by the DataPath acquisition and synergies with the U.S. DoD. CFO Gil Benyamini stated that Peru is expected to grow long-term despite a potential dip in 2025 from contract renewal delays. Regarding Stellar Blu's earn-out payments, Sfadia noted it is too early to determine, with the first milestone evaluation occurring mid-year.

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CEO Thomas Hogan detailed several growth drivers for 2026, including the continued rapid adoption of Guardian, converting the remaining 50% of the customer base to the Insights platform, and a strong rebound in the U.S. Federal business, which will be aided by the pending FedRAMP ATO. He also highlighted significant growth potential from the Keryllium acquisition and new strategic initiatives.

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Chief Products and Technology Officer Ronnen Armon and Interim CEO Thomas Hogan positioned Guardian as a unique, purpose-built digital investigation platform, not just a storage solution, emphasizing its integrated capabilities and rigorous chain of custody. CFO Dana Gerner confirmed that the U.S. federal business is about 20% of revenue and almost entirely subscription-based. She clarified that any current disruption is causing a slight lag in new business timing, not impacting the stable renewal base.

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EVP & CTO Mahesh Saptharishi explained that near-term use of Silvis for drones in North American public safety is limited by spectrum availability, but its spectrum monitoring capability is valuable for drone detection now. EVP & COO Jack Molloy noted a significant opportunity at the borders. Regarding LEO, Mahesh Saptharishi clarified that support will be integrated via base stations to provide redundancy, with discussions underway with LEO providers.

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EVP and CTO Mahesh Saptharishi attributed the audio quality to decades of microphone design expertise coupled with advanced AI for noise cancellation. He revealed they use Anthropic's Claude model for AI Assist due to its safety features. Chairman and CEO Gregory Brown praised the BRINC partnership for its US-made products and expanded capabilities, which Saptharishi noted aligns with a sharp increase in FAA waivers for 'drone as a first responder' programs.

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EVP & COO John Molloy characterized the state and local funding environment as 'great' and as strong as it was two years ago, citing the prioritization of public safety and healthy local tax revenues. EVP & CTO Mahesh Saptharishi detailed that while applying AI to mission-critical use cases is complex, the company already has significant edge AI in its video cameras and plans to enhance its 'Vicki' radio assistant with generative AI, leveraging the devices' superior audio quality.

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CEO Tony Koblinski explained that the company focuses on collaborative partnerships rather than using its backlog for pricing leverage, though he anticipates modest margin expansion from operational efficiencies. He detailed that MTI added classified programs and new customers, while ISP brought energetic formulations and small rocket motor expertise, with both acquisitions being immediately accretive and creating cross-selling opportunities.

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CEO Tony Koblinski explained that the company works collaboratively with customers and does not expect the strong backlog to directly translate to higher pricing, though he anticipates modest margin expansion from operational efficiencies. He detailed that the MTI and ISP acquisitions have added new capabilities, customers, and are already being integrated to cross-sell across the business.

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President, CEO & Chair Lynn Bamford confirmed involvement in next-gen command and control and broad penetration across new defense programs like Golden Dome and XM30. She also affirmed the $1 billion+ figure for the North American AP1000 opportunity as a reference point, while noting they are cautiously working to be Westinghouse's partner on the program.

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CEO Lynn Bamford confirmed that SMR partnerships are progressing well, highlighting ramping development revenues with partners like TerraPower and X-energy. She also noted that the Ultra Energy acquisition has been critical in extending the partnership with Rolls-Royce. The company anticipates moving to prototyping within the next 12 to 24 months.

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CFO Zachary Cotner confirmed that the vast majority of the approximate $65 million in 2025 strategic spending and synergy-related costs are expected to be removed in 2026. CEO Christopher Moore addressed the performance question by emphasizing that Galileo provides a consistent, reliable, aviation-grade service with global support, which is what customers value over raw speed tests. He reiterated that the 5G rollout is on track for Q4, with flight testing commencing in September, as the necessary chip is now in hand.

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CFO Zachary Cotner estimated that $60 million to $70 million in costs related to strategic programs and synergies should be removed in 2026. CEO Christopher Moore reported that initial HDX customers are experiencing 'flawless' service, supporting activities like Teams meetings and streaming. He stated the product is performing within its spec of up to 60 Mbps and emphasized its consistent performance globally, which is a key differentiator over raw peak speed.

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CEO Chris Moore explained that Gogo has shifted to revenue-sharing models with operators, which provides greater pricing flexibility. He and CFO Zach Cotner anticipate modest positive net additions for the JX product, citing its stickiness as a line-fit option on aircraft like Gulfstream and the high cost of switching. Executive Chairman Oakleigh Thorne added that high-end customers will continue to demand multi-orbit solutions for redundancy and global coverage, supporting demand for GEO services.

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President and CEO John Mengucci clarified that the mounted variant is not part of the current $500 million TLS Manpack program and would represent new work for CACI. He explained that the software-defined nature of the technology makes it easily adaptable for mounted platforms, like tanks and other vehicles, and noted that other services are also interested in this capability, suggesting future opportunities.

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CEO John Mengucci confirmed CACI views domestic Counter-UAS as a viable and critical growth market, where it is already a leading provider. Regarding Spectral, he described it as a '5- to 10-year franchise win,' explaining its modular, open-architecture design makes it highly suitable for other platforms, and that discussions for broader use are already underway.

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CFO Jeffrey MacLauchlan clarified that materials revenue was not a material factor in margins, which were driven by a favorable business mix. CEO John Mengucci defended their RF-focused counter-UAS strategy as the most reliable method, highlighting their extensive experience, confirmed kills, and cost-effectiveness. He confirmed a strong pipeline exists, boosted by the Azure Summit acquisition, with new awards expected soon.

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CEO David Roberts confirmed the photo enforcement pipeline is very strong, citing the $60 million in trailing-twelve-month ARR bookings as an indication of strong conversion to revenue. CFO Craig Conti addressed the commercial growth question, stating that while the 5% alpha over travel volume holds for the current year, it may vary in the future. He confirmed that the underlying secular tailwinds, such as the shift to cashless tolling, remain unmistakably positive despite some fits and starts.

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CEO David Roberts stated that while autonomous vehicle technology is advancing, Verra Mobility's current partnership focus is on embedding its technology directly with car manufacturers. CFO Craig Conti explained that the $52 million in trailing 12-month ARR bookings will convert to revenue over 12-18 months and that churn is very low with a 97-98% renewal rate. He also affirmed that the 3x net leverage target remains appropriate but would be re-evaluated if the macroeconomic environment changes significantly.

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CFO Craig Conti gave an 'emphatic yes' that the pipeline is as strong as ever, supported by a $185 million addressable market. CEO David Roberts mentioned a dedicated engineering group focuses on camera technology. Regarding pricing, he explained all-inclusive adoption is location-specific, and Craig Conti added it is currently used by two rental car customers and performing well.

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Executive David Roberts stated that other California cities may use San Francisco's RFP as a template, potentially accelerating their timelines. He described Florida as competitive but a market where Verra Mobility is well-positioned. He explained the Hayden AI partnership involves Verra providing back-end processing for Hayden's mobile bus lane enforcement camera technology.

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CEO Cary Smith explained that infrastructure revenue profiles vary by project role, being front-loaded for design work and steady for program management. She noted the confidential contract wind-down would be immaterial. Regarding the Globalstar partnership, Ms. Smith described it as an innovative solution combining Parsons' technology with Globalstar's LEO constellation to provide assured PNT in contested environments, with successful deployments already active.

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CEO Carey Smith and CFO Matt Ofilos clarified the confidential contract's $242 million is initial funding and considered solid, with potential for upside if a related program restarts. Carey Smith detailed Parsons' extensive missile defense, cyber, and systems integration experience, positioning them well for a layered defense initiative. She also noted that their infrastructure funding is from state, local, and IIJA sources, and that any reallocation of federal funds towards 'hard infrastructure' would be a positive.

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CEO Carey Smith explained the guidance reflects realism, accounting for typical program run-offs and recompete risks, like a key confidential contract. She confirmed digital twin capabilities are used across both segments, particularly with the Missile Defense Agency and on airport projects. Smith emphasized that new IIJA contracts are for lead design work, which is Parsons' core strength, and do not carry the same construction-related risks as the legacy programs from the 2010-2015 era that caused write-downs.

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CEO & Chairman Mark Dankberg explained that Trellisware's proprietary waveform differentiates it from WiFi-based peers and its growth is driven by government standard adoption. He confirmed its potential for aerial platforms and highlighted a major encryption upgrade cycle fueled by quantum-computing resistance and demand from secure data centers using AI and data fusion, which benefits from the growth of platforms connecting sensors to shooters.

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Chief Financial Officer Garrett Chase did not provide fiscal 2027 guidance but noted fiscal 2025 CapEx was around $1 billion. Chairman and CEO Mark Dankberg expressed confidence in the maritime turnaround due to a strong and growing backlog for the new NexusWave service, which is capitalizing on higher revenue per ship from increased crew usage. He also confirmed Viasat is well-positioned to play a role in the Golden Dome program across various technology areas like cybersecurity and sensor fusion.

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CEO & Director Joseph Cutillo confirmed Sterling is extremely well-positioned for the data center capital boom and is actively expanding into new geographies like Texas, with plans for the Northwest in 2026-2027. He noted that data centers now constitute 62% of the E-Infrastructure backlog. Mr. Cutillo stated that expansion will be a mix of organic growth and acquisitions, and he would be disappointed if Sterling didn't secure wins in Texas by the end of 2025.

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CEO John Holmes stated that after doubling Trax revenue to ~$50 million since its acquisition, the goal is to double it again through new wins like Delta and by upgrading existing customers. CFO Sean Gillen confirmed there are costs associated with the supplier portal rollout in the current fiscal year. Gillen also noted the Triumph business is now part of organic results and contributed to the segment's 8% growth. Holmes confirmed that the new hangar capacity is already sold out ahead of its opening in calendar 2026.

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CFO Sean Gillen clarified that while the Landing Gear divestiture will be accretive to margins, the impact will be modest as the business was only slightly profitable. CEO John Holmes confirmed that the Trax business is AAR's highest-margin segment, and recent wins with Cathay Pacific and Singapore Airlines, along with a strong pipeline, will drive overall margin expansion as it scales.

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Executive John Holmes stated it was early but that signs were encouraging for USM, with both USM and distribution performing well simultaneously. He projected the Chromalloy deal would contribute immediately, while the Whippany agreement would ramp over multiple quarters into FY26. Executive Sean Gillen reiterated the focus on deleveraging to a 2x net leverage target within two years post-acquisition, while maintaining a long-term appetite for M&A in the aftermarket.

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CEO Wahid Nawabi confirmed the Army's initiative represents a significant incremental opportunity for AeroVironment's core products. He stated there were no write-downs in the backlog and that the change was due to the conversion of unfunded to funded orders. Later in the call, CFO Kevin McDonnell clarified that a large unfunded IDIQ contract expired as purchasing authority shifted to a new group (PEO Soldier), which will use a new vehicle. Nawabi expressed high confidence in the P550 and Red Dragon, expecting them to become major revenue drivers with strong international interest.

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Wahid Nawabi, Chairman, President and CEO, directed the question on BlueHalo's forecast to the S-4 filing, expressing bullishness on the combined entity. He confirmed one of two large JUMP 20 orders has closed (Denmark, $181M) and the second is expected in Q4 or early Q1 FY26. He clarified the stop-work order is for U.S. government-funded FMS contracts, which the DoD is re-evaluating. CFO Kevin McDonnell added that combined guidance will be issued post-close.

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Wahid Nawabi, Chairman, President, and CEO, stated that integrating Switchblade with the Kinesis ecosystem is a planned initiative, but its priority is driven by customer requirements, which currently focus on immediate delivery with existing controllers. He confirmed the long-term strategic goal is a common operating picture across all company platforms, including future BlueHalo assets post-acquisition. Regarding Ukraine, Nawabi emphasized that global demand for both UAS and loitering munitions is highly diversified and robust, driven by a fundamental shift in global defense strategy that extends well beyond any single conflict.

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CEO Wahid Nawabi explained that the new IDIQ, under the U.S. Army's 'Lethal Unmanned Systems' (LUS) terminology, is the successor to the previous LMAMS contracts. He clarified it can fulfill needs for the Army, Ukraine aid packages, and Replicator initiatives for the Army. CFO Kevin McDonnell and CEO Wahid Nawabi clarified that while they expect overall LMS segment profitability to improve with volume, the key contractual improvement is more favorable progress payment terms, which will improve working capital and cash flow.

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CEO John Cuomo explained the Eaton deal originated from VSE's OEM-centric strategy of solving aftermarket problems for partners and that he sees it as a starting point for a broader relationship. Regarding Honeywell, he stated the goal is to become the manufacturer of record well before year-end. On future M&A, Cuomo emphasized a disciplined approach, stating VSE would not consider new deals until 2026 and that the pipeline includes a mix of small, medium, and transformational opportunities, making the timing unpredictable.

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CFO Adam Cohn stated that some trapped corporate costs are expected, likely at the higher end of the previously guided $3-$4 million range, and that pro forma margins should improve by over 100 basis points post-divestiture. President and CEO John Cuomo clarified that the Honeywell margin uplift will be largely realized in 2025, not 2026. Regarding M&A, Cuomo said he does not see Aviall coming to market and that VSE is comfortable with its current pipeline, though it is now positioned to consider larger assets.

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CEO Matt Desch expects the IoT subscriber trend to normalize in 2026 after the one-year transition period for the partner's plan change. He confirmed discussions are ongoing for a new 'win-win' contract structure. He also stated that the 'big lump' of NTN Direct CapEx will be largely completed this year. Finally, he confirmed all 80 satellites are healthy, no spares have been used, and the network is performing well beyond original expectations, suggesting the useful life could be extended again in the future.

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CEO Matt Desch stated that the broadband performance was in line with internal expectations and reinforces Iridium's strong position as a companion service, though it is not considered a primary growth driver. He confirmed that business development activity for Satelles has grown 'dramatically' since the acquisition, driven by global demand to counter GPS jamming, which has led to an expansion of the sales footprint and team.

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CEO Thomas Bell confirmed Leidos is a subcontractor on MACH-TB 2.0 but retains prime work on 1.0. He stated the protested contract has not yet been adjudicated and is not in backlog. He affirmed that the Enduring Shield system is viable for domestic deployment and is a key part of their IRON DOME value proposition.

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CFO Chris Cage stated that he does not expect Q4 volumes to show an uptick over the "spectacular performance" of Q2 and Q3. However, he clarified that the underlying demand signal is strong enough to sustain that level of performance going forward, as the backlog of pending claims remains substantially elevated. He expects volumes to stay in the current zone for the next several quarters.

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