Mariana Perez Mora

Mariana Perez Morrow followed up on nuclear opportunities, asking if the mentioned margin-accretive nature was due to significant EBITDA per contract or non-consolidated joint venture EBITDA. She also inquired about the speed of these opportunities, specifically how much of the $20 billion pipeline awaiting award is nuclear-related. Additionally, she asked about the drivers, beyond nuclear, that would achieve the 8.5%-9% margins expected by FY28, given that Q4 FY26 margins were lighter than anticipated.

Answer

COO Steve Arnette clarified that margin expansion in the front-end nuclear energy market is primarily due to the nature of the work (U.S. commercial and international), not unconsolidated joint ventures. CEO John Heller stated that nuclear represents about 17% of Amentum's current business, noting that while demand is real, nuclear projects take time, with significant engineering work for SMRs expected through this decade. He did not specify the nuclear portion of the $20 billion pipeline. Steve Arnette reiterated that the aggregate of accelerating growth areas (nuclear, critical digital infrastructure, space systems) are margin accretive and will outpace other portfolio growth, combined with cost synergy initiatives (30-50 basis points by FY27-FY28), to drive overall margin expansion.

Mariana Perez Morrow followed up on nuclear opportunities, asking if the margin-accretive nature stems from significant EBITDA pure to the contract or from non-consolidated joint venture EBITDA. She also questioned the speed at which these opportunities, particularly those within the $20 billion pipeline, could materialize. Additionally, she asked about the other key drivers, beyond nuclear, that will contribute to achieving the 8.5-9% margin target by 2028, given the lighter-than-expected Q4 FY26 margins.

Answer

CFO Travis Johnson clarified that the margin expansion in the front-end nuclear energy market is primarily from the nature of the work in U.S. commercial and international sectors, not unconsolidated joint ventures. CEO John Heller reiterated that the global nuclear market, representing about 17% of the business, is a real business delivering strong margins today, with a nuclear renaissance driven by electricity demand. He noted that gigawatt-sized plants require significant design and planning, with SMRs taking longer, involving engineering work through the decade. Travis Johnson further explained that the accelerating growth areas (global nuclear energy, critical digital infrastructure, and space systems and technologies) are margin accretive in aggregate, and their outpaced growth, combined with cost synergy initiatives, will drive the 30-50 basis points margin expansion towards the 8.5-9% target by FY27-FY28.

Mariana Pérez Mora of Bank of America Merrill Lynch posed a three-part question on Amentum's nuclear business, asking for its current size by sales and EBITDA, its potential growth rate relative to the market, and the expected margin contribution toward the company's 2028 goals.

Answer

CEO John Heller emphasized the strategic importance and differentiation of the nuclear business, citing over $2 billion in related work and a 50-project pipeline. CFO Travis Johnson quantified that about one-third of the company's $2.4-$2.5 billion Energy & Environment revenue is from front-end nuclear engineering and design. He confirmed this business is margin-accretive and that Amentum expects to grow at least in line with the market.

Mariana Mora from Bank of America Securities asked about the behavioral shifts driving accelerated customer appetite for Palantir, both in acquiring new customers and expanding existing relationships. She also questioned how Palantir's internal tech, like AI agents (AIFDEs), supports this demand and inquired about future U.S. government opportunities, such as Golden Dawn.

Answer

CEO Alex Karp attributed the shift to customers realizing the inadequacy of alternative solutions and seeing tangible results from Palantir's ontology, Foundry, and FDE model. Ryan Taylor emphasized the network effect of deep customer impact. CTO Shyam Sankar explained that AIFDE significantly boosts FDE productivity, allowing Palantir to scale with only 10% headcount growth against 63% revenue growth, and mentioned government opportunities in NGC2 and MAVEN amidst global conflicts.

Mariana Mora from Bank of America asked about the behavioral shifts in commercial customers leading to accelerated adoption and expansion of Palantir's solutions, and how Palantir is internally incorporating technologies like AI agents (AI FDEs) to meet this demand. She also inquired about future opportunities in the U.S. government sector, such as Golden Dome, following the impressive 50%+ growth.

Answer

Ryan Taylor, Chief Revenue Officer and Chief Legal Officer, attributed commercial acceleration to tangible results and a network effect among customers. CEO Alex Karp noted that customers are realizing the ineffectiveness of alternative solutions and are drawn to Palantir's proven results, leading to fundamental business transformation. Internally, Alex Karp emphasized maintaining Palantir's unique focus on complex problems. CTO Shyam Sankar explained that AI FDEs were initially built to boost internal FDE productivity (revenue grew 63% with 10% headcount growth) and are now empowering customers, accelerating adoption depth. For the U.S. government, Shyam Sankar highlighted numerous opportunities, including NGC2 and Maven, and Palantir's support in global conflicts.

Mariana Mora from Bank of America inquired about two key areas: Palantir's perspective on the White House's AI action plan, and the company's strategy for attracting and retaining top engineering talent in a competitive market.

Answer

CTO Shyam Sankar addressed the White House AI action plan, expressing excitement that it removes barriers and promotes practical implementation. On talent, Sankar and CEO Alex Karp highlighted that Palantir attracts and retains top engineers by offering immediate agency on high-impact, meaningful projects. Karp added that the 'Palantirian' credential has become highly valuable in the tech industry, independent of an individual's background.

Mariana Perez Mora asked about Palantir's plans to apply its 'Warp Speed' model to the European defense buildup and for other examples, like the Titan program, where software can add value in traditionally hardware-focused domains.

Answer

CTO Shyam Sankar and CEO Alexander Karp addressed the questions. Sankar stated that while Palantir would love to help Europe's rearmament, the region must first recognize its existing manufacturing stack is broken. Karp added that Europe 'doesn't get AI yet' and the company's focus remains on the U.S. Regarding Titan, Sankar explained that building hardware around software is the future, noting that next-gen programs are increasingly adopting a 'software-first' approach to build more effective systems. Karp emphasized that software and hardware require different skills and America's advantage lies in these hybrid systems.

Mariana Perez Mora from Bank of America asked about Palantir's positioning for potential government disruption and its investment strategy to capture surging AI demand.

Answer

CTO Shyam Sankar expressed optimism that a government focus on meritocracy and transparency would benefit Palantir, a sentiment echoed by CEO Alexander Karp who stated disruption exposes inefficiencies. Regarding investments, CFO David Glazer highlighted a focus on hiring quality engineers, while Karp added that the company is also investing in its unique culture and seeing a significant increase in genuine partnership opportunities.

Mariana Perez Mora from Bank of America inquired about the drivers behind the 40% U.S. government growth and why other defense firms are now actively partnering with Palantir. She also requested an update on the status of strategic commercial contracts.

Answer

CTO Shyam Sankar explained that partners use Palantir's infrastructure to accelerate their own revenue and improve production margins. CEO Alex Karp added this was a deliberate strategy to shift perception and turn potential rivals into allies. Regarding the second question, CFO David Glazer stated that strategic commercial contracts are now a de minimis part of the business (around 1% of revenue) and the program is no longer relevant.

Mariana Pérez Mora asked about anticipated destocking trends and aftermarket/spare engine demand in commercial aerospace for the upcoming year, the dependency of IGT guidance on new capacity, and the company's outlook on raw material risks, pricing, and pass-through mechanisms.

Answer

Executive Chairman and CEO John Plant stated that commercial aerospace destocking is largely complete, with 2026 expected to be another very strong year for engine spares across CFM56, V2500, and GTF engines. For IGT, he foresees increased original equipment (OE) demand and strong spares demand in 2026 and 2027. Regarding raw materials, he confirmed solid pass-through capabilities and characterized the net tariff effect as a minor drag, expected to be sub $5 million for the year.

Mariana Pérez Mora from Bank of America inquired about commercial aerospace destocking trends, aftermarket/spare engine demand, and the sensitivity of IGT guidance to the timing of new capacity coming online. She also asked for an update on raw material tariffs and pass-through mechanisms.

Answer

Executive Chairman and CEO John Plant stated that commercial aero destocking is essentially finished, with strong engine spares demand expected in 2026 for CFM56, V2500, and GTF engines, driven by fleet utilization and retrofits. For IGT, he noted strong fundamental demand and increasing OE builds into 2027, alongside robust spares demand. Regarding tariffs, Plant clarified that the net effect remains small, under $5 million for the year, due to pass-through capabilities and exemptions, making it a non-issue.

Mariana Perez Mora asked for clarity on the new guidance, specifically regarding the strength of backlog coverage and the qualified pipeline compared to previous periods, and the certainty of on-contract growth. She also inquired about the current size and future growth expectations for the cyber portfolio over the next two to three years.

Answer

Matt Calderone (EVP and CFO) indicated the guidance assumes current burn rates and trends persist, not relying on significant new wins, but requiring some on-contract growth. Horacio Rozanski (Chairman, CEO and President) and Kristine Anderson (EVP and COO) confirmed productive conversations with customers, especially in national security and growth vectors like cyber, where they expect continued growth for products like ThunderDome. Horacio expressed strong bullishness on the cyber business due to its unique position, AI convergence, and growing demand from government and commercial clients.

Mariana Perez Mora asked for clarity on the new guidance, specifically how much is covered by backlog versus new wins, and the strength of the backlog coverage and pipeline compared to previous periods. She also inquired about customer conversations regarding on-contract growth certainty and the expected growth trajectory and current size of the cyber business.

Answer

Matt Calderone (EVP and CFO) indicated that the guidance assumes current burn rates and trends persist, not relying on significant new wins but requiring some on-contract growth. Horacio Rozanski (Chairman, CEO and President) described productive conversations, especially in national security and growth vectors like cyber, expecting continued growth for products like ThunderDome, but noted no heroic assumptions for the back half of the year. Kristine Anderson (EVP and COO) added that the administration is pushing for speed in some areas. Horacio Rozanski expressed strong bullishness on the cyber business, highlighting its unique position, convergence with AI, and growing demand from commercial customers.

Mariana Pérez Mora from Bank of America inquired about Booz Allen's potential role and visibility in the newly funded Golden Dome program. She also asked about the remaining headwinds for the Civil business and the challenges of matching hiring with demand, particularly for cleared technical talent.

Answer

CEO Horacio Rozanski detailed that Booz Allen is positioned to play various roles in the Golden Dome program, from cyber and intel to data platforming, and highlighted their unique solution for space-based interception. COO Kristine Anderson addressed the Civil business, stating it is now stable after the Q1 reset and poised for a return to growth. Regarding hiring, Anderson explained the challenge is not attracting talent but matching it to specific needs like clearances and location as demand shifts between sectors, expressing confidence in their AI-driven matching processes.

Mariana Perez Mora from Bank of America inquired about Booz Allen's hiring strategy amid political transition uncertainty, the role of the VoLT strategy in absorbing new opportunities, partnerships with commercial tech firms, and the outlook for Q4 book-to-bill.

Answer

CEO Horacio Rozanski explained that while they anticipate short-term disruption, the VoLT strategy has prepared them to be fast and flexible. He highlighted active partnerships with companies like Palantir and AWS to co-create solutions. CFO Matt Calderone added that while they see some procurement slowdown, their strong pipeline and backlog provide a solid foundation, though the Q4 book-to-bill remains to be seen.

Mariana Perez Mora of Bank of America questioned the company's strategy for software-driven hardware and rapid prototyping, as well as the key demand drivers for the Civil market beyond any near-term political turbulence.

Answer

CEO Horacio Rozanski clarified that Booz Allen's role is as a technology integrator, not a hardware manufacturer, focusing on adapting dual-use technologies for missions at the tactical edge. For the Civil market, he identified "data-enabled missions" as the core long-term growth driver, citing opportunities to apply data analytics and AI in public health, veterans' affairs, and law enforcement to accelerate mission success.

Mariana Perez Mora followed up on the accounts receivable issue, asking for a breakdown between Mexico and other customers and if collections had improved post-quarter end. She also inquired about the M&A pipeline and the expected timing for the 'Big Beautiful Bill Act' funding to translate into actual awards and revenue.

Answer

EVP and CFO Alan Edrick confirmed that cash collections from Mexico have resumed in Q1 of fiscal 2026, with more expected. He clarified the receivable increase was more driven by strong overall revenue strength than just the Mexico portion. CEO A. J. Mera stated that while OSI has significant 'dry powder' for M&A and is actively looking, they will remain disciplined. Regarding the new US funding, Mera anticipates orders could materialize in the latter half of fiscal 2026, primarily benefiting fiscal 2027 and beyond, with some potential upside in late fiscal 2026.

Mariana Perez Mora from Bank of America inquired about a different angle on tariffs, asking if the elimination of the de minimis exception for China is driving early interest in more screening solutions. She also asked about the long-term vision and investment required for the Healthcare division under its new leadership.

Answer

Executive President & CFO Alan Edrick acknowledged that the changing de minimis rule could present a future opportunity for more screening machines and AI solutions with freight forwarders, though it is still early. Regarding Healthcare, he stated the primary goal is to launch a next-generation platform within about 18 months, with R&D spending expected to remain at current levels. The new president is focused on execution and tightening operations.

Mariana Perez Mora of Bank of America inquired about the revenue contribution from Mexico contracts, the transition from product to service revenue, and whether the new RF communications award was incremental business.

Answer

EVP and CFO Alan Edrick confirmed Mexico was a significant contributor but will be lighter in the second half, with a robust non-Mexico backlog expected to fill the gap. President and CEO Ajay Mehra and CFO Alan Edrick both noted that the large volume of product sales is setting the stage for strong, high-margin recurring service revenue growth starting as early as Q3 as warranties expire. Ajay Mehra also confirmed the RF award represents new business, not just a recompete.

Mariana Perez Mora asked for details on the 6-12 month opportunity pipeline, potential risks to contract timing, demand for Optoelectronics sensors, and whether OSI can negotiate better payment terms on large contracts to improve cash flow.

Answer

President and CEO Deepak Chopra described the global security pipeline as very strong, driven by increasing security awareness and nearshoring trends, and noted strong demand for Opto components in the defense sector. EVP and CFO Alan Edrick explained that while OSI always tries to secure advances, some large government contracts have customer-dictated terms, leading to temporary adverse cash flow despite strong economics.

Mariana Pérez Mora of Bank of America Merrill Lynch noted that CACI is achieving its three-year targets ahead of schedule and, with new tax benefits, asked if the cumulative free cash flow could significantly exceed the $1.6 billion target provided at the Investor Day.

Answer

CFO Jeffrey MacLauchlan acknowledged the positive developments since the targets were set but stated the company is not officially updating them at this time, while expressing increased confidence in achieving them. President and CEO John Mengucci added that the strong free cash flow generation is a direct result of the company's long-term strategy to focus on high-value markets, which provides significant operational and capital deployment flexibility.

Mariana Perez Mora asked about the M&A pipeline and seller willingness in the current environment, and whether increased competition exists for software and agility-focused acquisition targets.

Answer

CEO John Mengucci described the current M&A environment as having unfavorable valuations and seller expectations, leading to low actionability. CFO Jeff MacLauchlan added that activity is lower as sellers wait for more clarity. Regarding competition, Mengucci expressed confidence in CACI's position, stating that customers prefer partners with a proven, decade-long track record in agile software development, which is a key differentiator.

Mariana Perez Mora of BofA Securities asked about CACI's appetite to expand into civilian agencies given the DOGE initiative and the potential opportunities or challenges from a government shift toward more commercial, fixed-price contracts.

Answer

CEO John Mengucci stated CACI has a strong appetite for civilian modernization work, as its strategy is already aligned with delivering cost-effective solutions like Agile software development. He added that CACI welcomes outcome-based, firm-fixed-price contracts, viewing them as a positive. CFO Jeffrey MacLauchlan noted CACI is deliberately positioned to blend the best of government services and commercial providers.

Mariana Perez Mora asked how CACI is prepared for a potentially extended Continuing Resolution (CR) due to the election and inquired about the current M&A environment, including the deal pipeline and areas of strategic interest.

Answer

CEO John Mengucci stated that while a long CR could affect the timing of some short-cycle awards, customers are mitigating this by using IDIQ contracts, and he remains confident due to bipartisan support for national security. On M&A, CFO Jeffrey MacLauchlan described the pipeline as robust with contracting valuations. John Mengucci reiterated CACI's disciplined approach and focus on SIGINT, EW, cyber, and IT modernization.

Mariana Pérez Mora from Bank of America inquired about the performance and outlook for the Dynetics business, particularly its margins and growth potential related to the Golden Dome initiative, and also asked about drivers of improved profitability in the SES business.

Answer

CEO Thomas Bell stated the Dynetics acquisition is now 'firing on all cylinders,' with strong alignment to Golden Dome and counter-UAS needs. CFO Chris Cage added that the business is on a path to sustainable double-digit margins. Regarding SES profitability, Mr. Cage credited improved execution, a solidified supply chain, and strong management for the margin improvement, with the attractive ports and borders market also contributing.

Mariana Perez Mora of Bank of America questioned the risk a prolonged continuing resolution could pose to new opportunities and whether Leidos might benefit from extensions of existing programs.

Answer

CEO Tom Bell responded that Leidos is well-positioned in a continuing resolution scenario because its key growth opportunities are continuations of existing programs of record, not new starts. He described this as an 'easy button' for customers, who can exercise options on established franchises like IFPC without needing new program approvals.

Mariana Perez Mora asked about the opportunities for Leidos stemming from the administration's focus on border security and the 'IRON DOME for America' initiative.

Answer

CEO Thomas Bell confirmed these areas are "right in our wheelhouse," noting that Leidos's capabilities in space surveillance, counter-missile effects, and border screening technologies are directly applicable. He expressed optimism about significant growth opportunities, stating the company is actively presenting ideas to stakeholders.

Mariana Perez Mora asked for the rationale behind the conservative low single-digit growth forecast for FY25, given numerous opportunities, and also requested the mix of new business versus recompetes in the $29 billion pipeline.

Answer

CFO Chris Cage explained the cautious outlook stems from the difficulty of growing off 2024's substantially elevated performance, particularly in Health and Civil, and the longer ramp-up time for some defense programs. He also cited potential disruption from an election year. Regarding the pipeline, he stated that almost 70% of the 2025 portfolio represents new business and takeaways, with a modest recompete landscape, positioning the BD team to aggressively pursue new work.

Mariana Perez Mora inquired about the federal award environment following the continuing resolution and the potential impact of the reconciliation bill, and also asked for an update on the status of the confidential contract.

Answer

CEO Carey Smith expressed optimism about the federal environment, noting a solid 0.9x book-to-bill in Q1 and highlighting the strong alignment of the proposed $150 billion defense reconciliation bill with Parsons' capabilities. Regarding the confidential contract, she confirmed it is operating at a reduced run rate (~80% in Q1) due to a pause on a related contract, with a decision on the related program's foreign assistance review expected by mid-May.

Mariana Perez Mora from Bank of America inquired about the potential growth in PFAS and environmental remediation work under the new administration and asked about the M&A pipeline and the company's 'build, buy, or partner' decision-making process.

Answer

CEO Carey Smith expressed optimism for PFAS work and highlighted the recent TRS Group acquisition, which adds patented thermal soil remediation technology. She explained the M&A strategy is driven by speed and cost-effectiveness, with a focus on acquiring differentiated technology. The M&A pipeline remains strong, with strict financial and technological criteria for targets, and the company expects to complete 2-3 deals in 2025.

Speaking for Ron Epstein, Mariana Perez Mora asked for details on the pipeline of opportunities for Combat Systems in Europe. She also asked for the full-year book-to-bill expectation for Gulfstream given the evolving macro environment.

Answer

Phebe Novakovic, Chairman and CEO, stated that discussions for Combat Systems have accelerated throughout Eastern and Central Europe as governments increase defense spending. For Gulfstream, she said the company still sees a book-to-bill ratio close to 1-to-1 as achievable for the year, with an update to come in Q2 if that changes.

Mariana Perez Mora asked how much of V2X's business is in a 'safe environment' from defense spending shifts and how soon an upside from training opportunities like the WTRS contract could materialize. She also inquired about other key U.S. growth metrics to monitor.

Answer

President and CEO Jeremy Wensinger described the WTRS program as a 'contract of choice' with a high volume of task orders already flowing. CFO Shawn Mural added that while the main financial impact is back-half weighted, the contract vehicle allows for frictionless, quick-turn awards. For other metrics, Mural highlighted the program ramps of the F-5 award and the GMR award as key milestones to watch.

Mariana Perez Mora of Bank of America inquired about the primary drivers for 2025 growth, the contribution from international markets, the outlook for LOGCAP support in Europe, and the expected EBITDA margins for the HomeSafe program.

Answer

President & CEO Stuart Bradie highlighted that beyond HomeSafe and LinQuest, growth is expected from international government markets like Australia and the UK, as well as the Sustainable Tech business, particularly in the Middle East and Asia. He noted the LOGCAP revenue is not material to EBITDA and is prudently balanced in the guide. EVP & CFO Mark Sopp stated that HomeSafe is expected to have a negligible profit contribution in 2025 due to it being a ramp-up year.

Speaking for Ron Epstein, Mariana Perez Mora asked for the mix of aerospace & defense versus other industries in the M&A pipeline and about inventory levels in the OEM supply chain.

Answer

CEO Kevin Stein clarified their M&A pipeline is exclusively focused on aerospace and defense. Regarding inventory, he reiterated that they have limited visibility but acknowledged that some inventory buildup appears to be working through the system, a factor included in their conservative OEM forecast.