Louis Dipalma

Louis DiPalma asked if the Navy's new shipbuilding operating system, powered by Palantir and utilizing AI for supply chain efficiencies, has had any impact on Curtiss-Wright's volumes or margin expansion. He also inquired about the potential for Curtiss-Wright's involvement in the development of a lunar nuclear reactor, viewing these opportunities as viable long-term. Finally, he asked if more SMR content agreements, similar to those with Rolls-Royce, X-energy, and TerraPower, are expected to be announced.

Answer

Chair and CEO Lynn M. Bamford stated that the Navy's Palantir-powered system is still in the forming stage and has had no impact to date, but Curtiss-Wright will participate as appropriate. Regarding lunar nuclear reactors, she noted potential relevance due to Curtiss-Wright's expertise in micro reactors and high-quality, reliable components for space applications, though it's not expected to be as significant as AP1000 revenue. She confirmed expectations for more SMR content agreements to be announced in 2026, as the company continues to expand its content across various providers.

Louis DiPalma asked about the impact of the U.S. Navy's Shipbuilding Operating System, powered by Palantir AI, on Curtiss-Wright's volumes and margin expansion, particularly concerning supply chain efficiencies for submarine construction.

Answer

Chair and CEO Lynn Bamford stated that the initiative is still in the 'forming stage' and has had no impact to date, but Curtiss-Wright will participate as appropriate. Mr. DiPalma also inquired about Curtiss-Wright's potential involvement in the development of a lunar nuclear reactor for NASA, asking if these opportunities are viable long-term or too early to assess. Ms. Bamford noted that while the company primarily focuses on larger reactors, it does work with micro reactors and its capabilities in quality and reliability could be relevant for space applications, along with electronics capabilities, though nothing specific could be mentioned yet. Finally, Mr. DiPalma asked if Curtiss-Wright expects to announce more SMR content agreements similar to those with Rolls-Royce, X-energy, and TerraPower. Ms. Bamford confirmed that more announcements of new systems are expected in 2026 as customer confidence allows public disclosure.

Louis DiPalma asked about the drivers behind the Silvus guidance raise, specifically if it was primarily associated with non-Ukraine deployments, citing customers like Anduril. He also inquired about the strong double-digit growth in the video segment, asking if demand was increasing from hospitals, schools, and public venues in response to recent tragic incidents, and what customers are seeking in video systems.

Answer

EVP and CTO Mahesh Saptharishi stated the Silvus guidance raise is a mix of international and unmanned systems, noting that two-thirds of Anduril's products incorporate a Silvus radio. Chairman and CEO Greg Brown and EVP and CFO Jason Winkler attributed video growth to AI-driven analytics, the cloud Alta platform, and a hybrid approach offering customer choice. EVP and COO Jack Molloy added that camera deployments were up slightly in 2025, with expectations for better 2026, driven by safety and security prioritization in public and private sectors, and the expansion into safety and compliance-oriented use cases with generative AI capabilities.

Louie D DiPalma inquired about the funding environment for the defense and intelligence business, specifically whether it is improving or expected to remain strained after the government shutdown, and sought clarification on the assumptions baked into the civilian guidance regarding the shutdown and potential further cuts. He also asked about the stabilization of the civil business from the September quarter relative to the June quarter.

Answer

Horacio Rozanski (Chairman, CEO and President) explained the bifurcation of the market, noting the challenging civil market with procurement delays and a stronger, though still frictional, national security environment with slower ramp-ups for new wins. Matt Calderone (EVP and CFO) clarified that the civil guidance assumes no further cuts but a competitive procurement environment, with the business feeling 'stabilized' after significant prior reductions. Kristine Anderson (EVP and COO) confirmed the civil business has been steady since earlier reductions but the environment remains slow, with productive conversations for future growth.

Louis DiPalma sought clarification on whether Iridium plans to explore strategic options or if its phone line is simply open. He also asked about Aireon's involvement in the FAA's air traffic control modernization, the availability of chipsets for Iridium's narrowband non-terrestrial network (NTN) solution, and the timing of the Deutsche Telekom roaming partnership going live, as well as if these chipsets would be mass-market smartphone chipsets.

Answer

CEO Matt Desch reiterated that Iridium will pivot to use its growing cash flow for acquisitions and investments in unique areas to ensure long-term growth. He confirmed discussions between Aireon and the FAA regarding air traffic control modernization, particularly for areas like Alaska and the Caribbean. Mr. Desch stated that chipsets for Iridium NTN Direct will be available next year (with prototypes currently existing) and the service is planned for 2026, likely in the latter half. He clarified that these will be mass-market chipsets, like Nordic, incorporating Iridium's capability alongside terrestrial and other satellite spectrums.

Louis Dipalma of William Blair & Company asked about the business development pipeline for TRAX, its potential as a sales channel for parts, the status of recent implementations, competitive dynamics of the Navy P8 contract win, and progress on in-sourcing repair work from the Triumph acquisition.

Answer

John Holmes, Chairman, President and CEO, reported strong progress for TRAX with new customer wins and a healthy pipeline, noting AAR's backing is opening doors at larger airlines. He confirmed that in-sourcing work from Triumph to support the USM business is largely complete, and the opportunity to in-source for commercial programs is larger than initially anticipated, though it represents a longer-term effort.