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President and CEO John Mengucci stated that CACI focuses on differentiated, high-value bids rather than being a traditional government services company pursuing a massive pipeline. He clarified that the majority of the pipeline is new work for CACI. Both Mengucci and CFO Jeffrey MacLauchlan affirmed that the ITAS ceiling reduction has zero impact on backlog, revenue, margins, or financial targets.

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CEO John Mengucci stated that CACI has not seen a material slowdown in contract growth, citing a strong Q3 book-to-bill and a growing pipeline of RFPs. For FY26, he noted it will be a moderate recompete year with no single program representing more than 5% of revenue. CFO Jeff MacLauchlan added that the business rhythm remains aligned with the company's 3-year financial targets.

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CEO John Mengucci recommended accelerating IT modernization with proper funding, establishing a national counter-UAS strategy, and improving acquisition official training to reduce protests. CFO Jeffrey MacLauchlan added that M&A valuation multiples have already moderated, but CACI's near-term capital deployment focus is on deleveraging after recent acquisitions.

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CEO John Mengucci confirmed that CACI has had discussions with other prime contractors regarding optical communications terminals, highlighting CACI's mature, U.S.-manufactured technology and reaffirming delivery targets. Regarding Azure Summit, he explained that its technology is applicable to Five Eyes nations and is a key part of CACI's strategy to expand internationally by integrating its software with Azure's hardware for U.S. customers first, then allies.

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Co-COO Mike Lisman stated that M&A is not prioritized by specific content like engines; the primary focus remains on proprietary components and achieving a 20% IRR target. He affirmed that the company is happy with its current portfolio of businesses and did not suggest any plans to sell assets.

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President and CEO Kevin Stein reiterated the company's established capital allocation priorities, confirming that returning capital via special dividends or buybacks remains a key option after funding internal projects and M&A. He characterized recent repurchases as opportunistic. Co-COO Mike Lisman stated there is "no meaningful difference" in margins between engine and non-engine aftermarket products.

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Co-COO Joel Reiss stated they are not yet receiving orders for the back half of the year but are prepared to support the ramp. CEO Kevin Stein described the share buyback as an opportunistic move to return capital during market turmoil, clarifying it does not reflect a change in their M&A outlook or view on valuations.

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CEO Kevin Stein confirmed the math was 'directionally the right way to look at it' and reiterated the company's capital allocation priorities: first, reinvesting in the business; second, pursuing disciplined M&A; and third, returning capital to shareholders. CFO Sarah Wynne also confirmed the math was correct.

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Executive Chairman and CEO John Plant responded that there have not been any such conversations. He acknowledged the critical importance of these assets to the defense industry, particularly for future fighter jet programs. Plant found the question interesting and suggested it might stimulate the company to initiate that conversation with the DoD regarding support for these vital national assets.

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EVP and CFO Thomas Stiehle stated the five-year free cash flow guidance is not back on the table, as HII is focused on meeting its annual targets. President and CEO Christopher Kastner added that building Virginia-class subs alone would require 'significant capital' but that HII would have sufficient skilled labor for such a long-term project and supports the Navy exploring alternatives.

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President and CEO Christopher Kastner stated that the contract type was specific to the situation and not necessarily a future trend, as the priority is delivering wage support to the workforce. Regarding the 'Golden Dome,' Kastner confirmed HII has not been involved in any discussions related to radar supply for that initiative.

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President and CEO Christopher Kastner highlighted transparency and resolve in negotiations as key lessons. CFO Thomas Stiehle added that success hinges on securing balanced contracts that reflect current economic realities and then executing consistently. Regarding EACs, Kastner noted there is no specific date for a turnaround but expects profitability to improve as the mix shifts away from pre-COVID contracts. Stiehle confirmed the guidance incorporates the current EAC trajectory based on performance and risk, but declined to provide a specific net EAC assumption.

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CEO Christopher Kastner voiced strong support for the SAS plan, calling it an 'excellent idea' and the 'smartest, best way' to unlock necessary investment in the workforce and infrastructure. He confirmed it remains under review. He declined to comment on the specific $17 billion figure or congressional funding actions, reiterating the focus on securing an equitable contract solution.

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CEO Chip Blankenship described mid-program displacements as 'rare' but noted the win solidifies Woodward's position as a Tier 1 supplier to Airbus, which is strategic for future aircraft programs. CFO Bill Lacey stated that price realization was approximately 7% for the total company in the quarter, prompting an increase in the full-year forecast to nearly 7%.

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CEO Charles Blankenship stated that while the portfolio is always under review, the current focus for the China on-highway business is on operational readiness for market upticks. Regarding the 787, he confirmed they are meeting GE's demand for the GEnx engine and have the capacity to support future rate increases.

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CEO Charles Blankenship explained the wide guidance reflects uncertainty around Boeing's production ramp. He affirmed that Defense OE is expected to be the fastest-growing market for the year, despite a strong Q1 for commercial aftermarket which benefited from an easy comparison and is expected to moderate. He also noted that the supply chain has not returned to pre-COVID norms, with ongoing labor and quality challenges affecting about 15-20 key suppliers across both Aerospace and Industrial segments.

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CEO Charles Blankenship stated that Woodward has no plans to become a PMA supplier, preferring to focus on its existing and future OEM content. CFO William Lacey confirmed that JDAMs contributed to the 40% defense OEM growth in Q4, but noted that growth was broad-based across the smart defense portfolio and is expected to continue in fiscal 2025.

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CEO Tom Gentile and CFO Patrick Winterlich explained that while contracts include inflation and volume protections, productivity gains are often shared with customers since their cooperation is required for process changes. They view supply chain synchronization, rather than significant restocking, as the primary goal, describing any potential restocking as a very gradual process.

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Chairman, CEO and President Tom Gentile explained that they negotiate pricing with Boeing as shorter-term contracts expire. For the long-term A350 contract with Airbus, which runs to 2030, the focus is on joint productivity programs to share cost savings rather than repricing. He stated the Austrian facility is tailored for industrial production (wind, recreation) and is not suitable for producing aerospace-grade materials for defense programs.

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Chairman, CEO & President Tom Gentile declined to comment on confidential customer discussions but noted Hexcel has minimal tariff exposure, sourcing 95% of materials from the US, Europe, and Japan. Executive Patrick Winterlich added that nothing out of the ordinary was factored into guidance for the union negotiation, and a mutual agreement is expected.

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CEO Tom Gentile defended the hiring strategy, emphasizing that a trained, experienced workforce is a strategic asset that cannot be created quickly, unlike inventory. Executive Patrick Winterlich added that prepreg materials have a finite shelf life, limiting inventory builds. Regarding 2025 incrementals, he stated the company will drive them strongly but did not commit to a specific range above historical norms.

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Chairman and CEO Christopher Kubasik clarified that the Wolfpack launch effects program was in development before the Aerojet acquisition. He described it as a unique and affordable offering in the 'attributable' market with both kinetic and EW variants. He sees a revenue opportunity of a 'couple hundred million' in the next few years and noted the specific assets do not use solid rocket motors.

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Chairman & CEO Christopher Kubasik clarified that the Wolfpack initiative, a unique launch effects capability for kinetic strike and EW, was in development long before the Aerojet acquisition. He described the offerings as affordable and attributable, with over 40 test flights completed. He projected a potential revenue target of a "couple hundred million" in the next several years.

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Chairman and CEO Phebe Novakovic stated that skilled labor is not a constraint for Electric Boat and that while some additional capital would be needed for independent production, it would not be an 'enormous amount.' Regarding aerospace demand, she said that while bonus depreciation helps, the strong orders were driven by multiple macroeconomic factors, not just one.

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Phebe Novakovic, Chairman and CEO, responded that the question of increasing the Columbia program size has been a recurring national security topic for over a decade but she hasn't heard anything new recently. Regarding Gulfstream, she stated she was not aware of any customers accelerating deliveries due to tariffs.

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Phebe Novakovic, Chairman and CEO, explained that while Marine contracts have always included escalation clauses, the recent, unexpectedly high level of inflation surpassed what those clauses contemplated. Regarding the Mexicali facility, she described it as part of long-term plans and stated the company would adapt to any future governmental policies as they are implemented.

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CEO James Taiclet responded that such a deal is not necessary. He explained that Lockheed Martin has already provided the U.S. government with all the data it controls for aircraft maintenance. Furthermore, he believes the fundamental demand for the F-35 is secure, as retiring 4th-generation aircraft are 'incredibly unsurvivable' in modern combat, making the F-35 an essential capability.

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CEO James Taiclet stated that such a deal is not necessary. He explained that Lockheed Martin has already provided the U.S. government with all the data it controls to maintain the aircraft. He also asserted that strong base demand for the F-35 will persist due to its unique survivability and capabilities compared to retiring 4th-generation aircraft.

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CEO Christopher Calio explained that the cost arrangement will be a customer-by-customer determination, but RTX's intention is to receive value for the significant investment and its substantial time-on-wing benefits. CFO Neil Mitchill added that while the upgrade will drive benefits, the company is taking a prudent approach to program margins and is not getting ahead of itself on recognizing favorable contract adjustments.

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Executive Chairman and CEO Christopher Calio expressed cautious optimism about reaching an agreement without interruption. He cited a good track record in recent negotiations and a long-standing relationship with the union, emphasizing the shared interest in meeting strong customer demand.

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Executive Christopher Calio declined to provide specific production rates ahead of airframer announcements but reiterated the company's mid-single-digit commercial OE growth forecast and its readiness to support customers. On the seating certification, he stated that while the requirements are complex, the company has a clear path forward.

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Chairman & CEO Lawrence Culp stated that the retrofit will be a multi-year process, occurring as engines naturally come in for shop visits rather than a dedicated campaign. He highlighted that the more producible blade is already helping improve output and contributed to the strong Q2 services revenue, which underpins the positive financial outlook for the program.

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Chairman and CEO H. Culp acknowledged it is a balancing act guided by principles of sharing in value creation and earning returns on investment. He reiterated the multi-faceted pricing approach, including standard increases and temporary tariff surcharges. He expressed optimism that GE can manage these competing priorities constructively with customers without disrupting underlying demand for its services.

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CEO John Holmes reported that new parts distribution led growth at over 20% and saw no evidence of abnormal pre-ordering due to tariffs. He affirmed that Parts Supply can be a low-teens margin business with potential for mid-to-high teens with strong whole asset sales. CFO Sean Gillen outlined capital allocation priorities as organic investment, M&A, and then share repurchases over reinstating a dividend.

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CEO John Holmes clarified that new parts distribution led the segment's growth at over 20% and that there was no evidence of abnormal ordering due to tariffs. He described whole asset sales as a normal part of the USM business. CFO Sean Gillen stated that once leverage targets are met and absent M&A, the company would prioritize share repurchases over reinitiating a dividend for capital return to shareholders.

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CEO John Holmes explained the FTAI partnership extension continues a similar, successful arrangement with expectations for volume growth as FTAI's portfolio expands. On tariffs, he stated AAR is not pre-buying inventory but is focused on passing through price increases, a practice they've managed successfully in the current inflationary environment. He also noted tariffs could potentially benefit AAR's domestic repair business.

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John Holmes, an executive, explained that AAR is in discussions with both Chromalloy and FTAI to explore mutual growth opportunities. He clarified that AAR's exposure to low-cost carriers is minimal, as its business is heavily skewed towards major airlines like United, Delta, and American. Sean Gillen, an executive, noted that a specific organic growth breakdown by segment was not readily available.

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Sean Gillen, VP and CFO, responded that he did not have the specific growth rates at his fingertips but indicated the information would be available in the forthcoming 10-Q filing.

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Horacio Rozanski, Chairman, CEO and President, acknowledged the industry is fragmented and expects share shifts but emphasized Booz Allen is aggressively positioning itself to win. Matthew Calderone, EVP and CFO, stated that while they are managing costs to protect margins during the Civil reset and preserve investment capacity, he would not anticipate near-term margin upside beyond the current guidance, though a long-term shift to outcome-based work could be accretive.

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CFO Chris Cage asserted that core business fundamentals are not a concern and remain strong. He explained that reaffirming guidance allows the company to maintain capacity to invest in critical areas aligned with its NorthStar 2030 strategy and administration priorities, stating it was not the right time to raise the outlook.

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CFO Chris Cage acknowledged the observation but cited several factors: the need for investment flexibility in a "pivot year," expected headwinds from higher interest rates on refinanced debt, a slightly higher tax rate, and the fact that 2024 benefited from an unusually strong year for program performance (EACs) that may not repeat at the same level.

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CFO Chris Cage explained that while the team has done a great job ramping CHS-6, its margins have not yet reached their full long-term potential. He noted that despite this, the National Security and Digital segment is performing well. CEO Thomas Bell added that Leidos is actively working to educate the Army on the full capabilities of the CHS-6 contract vehicle to help "supercharge that program" and drive future growth.

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CEO Kathy Warden clarified the incident was at a Space Systems facility and there would be no impact on any programs, including Sentinel, as they have other sources of supply. Regarding the canceled space program, she said that if the requirement still exists, the program could be reevaluated, but this is not in current-year expectations.

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Chair, CEO and President Kathy Warden acknowledged that the Air Force is conducting a force structure review that includes both NGAD and B-21. While it is premature to predict the outcome, she emphasized that Northrop Grumman's focus is on executing the B-21 program with strong performance and cost efficiency, thereby providing the Air Force with valuable options for its future force structure.

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President and CEO Robert Ortberg stated that he could not disclose contract details beyond what the U.S. Air Force has made public. However, he reassured that the company adhered to its strategy of matching contract type to the work, ensuring Boeing did not sign up for undue risk similar to past fixed-price development programs.

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Laurans Mendelson, Chairman and CEO, stated there is no change in their leverage philosophy, remaining comfortable operating around 2x EBITDA but willing to go to 3x for a desirable acquisition due to strong cash flow. Victor Mendelson, Co-President, described supply chain issues as being at "noise level" now, with significant improvement. Eric Mendelson, Co-President, noted the supply chain is getting better but not great, with labor being a key issue for suppliers.

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Co-President Eric Mendelson stated that defense sales are approximately one-quarter of the Flight Support Group's total sales and confirmed that HEICO has identified substantial opportunities for the DoD. Regarding Wencor, he affirmed that HEICO is leveraging its broad manufacturing capabilities for Wencor's new product development, seeing a very strong opportunity for further in-sourcing and cost savings.

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