Revenue beat Street by about 3%, operating profit by 10% and EPS by 20%. EPS included a $1.04 divestiture gain and Defense Systems margin benefited from a $76M Sentinel EAC improvement. No new B-21 charge was recorded; free cash flow was $637M versus expectations near $1.26B.
[AS-052]Full-year free cash flow increased on R&D tax treatment while sales were maintained; the second half still carried a substantial delivery ramp.
[AS-052]The result made the annual sales and cash bridge more credible, but some upside was below-line or estimate-at-completion related.
[AS-052]The roughly 9% gain reflected relief on B-21, a broad operating beat and improved cash guidance.
[MKT-001]Revenue beat Street by about 3%, operating profit by 10% and EPS by 20%. EPS included a $1.04 divestiture gain and Defense Systems margin benefited from a $76M Sentinel EAC improvement. No new B-21 charge was recorded; free cash flow was $637M versus expectations near $1.26B.
Revenue beat Street by about 3%, operating profit by 10% and EPS by 20%.
EPS included a $1.04 divestiture gain and Defense Systems margin benefited from a $76M Sentinel EAC improvement.
No new B-21 charge was recorded; free cash flow was $637M versus expectations near $1.26B.
Full-year free cash flow increased on R&D tax treatment while sales were maintained; the second half still carried a substantial delivery ramp.
| Metric | Prior | Latest | Consensus | Delta | Status | Reason / implication |
|---|---|---|---|---|---|---|
| 2025 sales | $42.0–42.5B | Reiterated | Not consistently available | No change | Reiterated | Production timingH2 ramp remains substantial |
| 2025 EPS | Charge-reduced range | Raised | Not consistently available | Includes divestiture benefit | Raised | Divestiture and executionQuality partly below line |
| 2025 free cash flow | $2.85–3.25B | Raised within / above prior range | Not consistently available | Positive | Raised | R&D taxTax treatment improves annual cash |
| Defense Systems margin | Prior outlook | Improved | Not consistently available | Positive | Raised | Estimate at completionIncludes $76M Sentinel EAC |
| B-21 charges | $477M Q1 | No new charge | Not applicable | Clean quarter | Directional | Program performanceExecution credibility improves |
The environment supported a modest guidance raise and a more credible second-half ramp, with B-21 returns and Space awards still the major swing factors.
The result made the annual sales and cash bridge more credible, but some upside was below-line or estimate-at-completion related.
The roughly 9% gain reflected relief on B-21, a broad operating beat and improved cash guidance.
The stock gained about 9% on day one.
| Window | Stock | vs benchmark | vs peers |
|---|---|---|---|
| 1D | +9.4% | +9.3% | +14.7% |
| 2D | +10.3% | +9.5% | +11.4% |
| 5D | +10.3% | +9.0% | +11.9% |
Funded B-21 acceleration, Sentinel progress and international growth turned the nuclear-triad narrative from charge risk toward qualified upside.
$4.5B reconciliation funding for capacity; active accelerated-ramp discussions with USAF
Preliminary restructure framework agreed; $76M favorable EAC; revenue momentum expected into 2H
Q2 international sales +18% YoY (+14% YTD) on generational European shift
GMLRS $0.3B award; ammunition ramp; SRM capacity nearly doubled in Utah, tactical output tripled
Q2 sales +9% sequential all segments; ~$700M new-program 2H sales + ~$1B Q4 seasonality; Q4 AS inventory liquidations
No new B-21 charge in Q2; learnings "understood and behind us" before further ramp
No material change; macro/inflation cost-recovery mechanics unchanged in Q2 disclosures
Speaker
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