Rob Stallard

Rob Stallard sought clarification on Lockheed Martin's plans for share buybacks and dividends for the current year and future periods, asking if there would be any changes to these capital return strategies.

Answer

Jim Taiclet, Chairman, President, and CEO, stated that the company would continue to evaluate all capital deployment options dynamically and would publicly disclose decisions regarding buybacks and dividends as they occur throughout 2026 and beyond.

Rob Stallard sought clarification on Lockheed Martin's capital return strategy, specifically whether the company plans to maintain its buyback and dividend levels in 2026 and beyond.

Answer

Jim Taiclet, Chairman, President and CEO, stated that the company will continue to evaluate all capital deployment options dynamically and will disclose decisions publicly as they occur, emphasizing that the opportunity set for investments is currently greater than ever.

Rob Stallard asked about the administration's comments regarding defense companies doing more research and fewer stock buybacks, inquiring if this was a trial balloon or part of active discussions, and followed up on potential restrictions on shareholder returns.

Answer

Kathy Warden, Chair, CEO, and President, confirmed discussions with customers about incentivizing investment through profitable growth opportunities, aligning with Northrop Grumman's strategy of investing above industry average. She stated that there have been no discussions with the administration suggesting an intent to restrict shareholder returns, believing alignment exists to incentivize investment through clear demand signals and increased returns.

Rob Stallard asked about the raised aerospace OEM guidance for the year, seeking details, and inquired about RTX's confidence in delivering new LEAP engines to Airbus to meet their full-year targets.

Answer

CFO Neil Mitchill detailed the guidance increase, attributing it to strong commercial aftermarket, commercial OE (Collins and Pratt), and Raytheon's defense performance. CEO Chris Calio expressed confidence in supporting OEM production ramps, emphasizing balancing material allocation for fleet support, and highlighted significant production increases since 2019.

Rob Stallard asked about the details behind the raised aerospace OEM guidance for the year and Chris Calio's confidence in delivering new LEAP engines to Airbus to meet their full-year targets.

Answer

CFO Neil Mitchill detailed the guidance increase, attributing it to strong commercial aftermarket, commercial OE (Collins and Pratt), and Raytheon's defense performance. CEO and Chairman Chris Calio expressed confidence in supporting Airbus's production ramps while balancing material allocation, noting RTX's robust production increase compared to 2019 levels.