Quarterly guidance

Quarterly guidance
No quarterly guidance was given.

Annual guidance

Revenue
$23.5 billion to $23.7 billion
Organic revenue growth
9% to 10%
EPS
$12.25 to $12.35
Free cash flow
$3 billion
Segment operating margin
low 16%

Outlook

Missile demand
Management expects demand for missile and missile products to remain strong and enduring, supported by Department of War priorities.
International growth
International revenue grew 18% in the quarter, and the company expects continued strength as allies increase defense investments.
Capital allocation
The company plans to prioritize investing in the business, dividends, and share repurchases, with no large-scale M&A expected.
Operational efficiency
Management is focused on using AI and automation to accelerate production and reduce costs, aiming to improve margins over time.
2028 framework
The company reaffirmed its 8% organic growth target for 2028, though it adjusted margin and free cash flow expectations to reflect more conservative assumptions.