Rob Stallard

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.