0000040533-26-000012
SEC filingStrong quarter with double-digit revenue and earnings growth, driven by broad-based segment strength and a dramatic cash flow turnaround.
Revenue for the first quarter of 2026 was $13.5 billion, a 10.3% increase compared to $12.2 billion in the prior year. The growth was driven by higher volume across the company's defense and aerospace segments, reflecting strong demand for products and services.
Operating income increased 12.0% to $1.4 billion, and operating margin expanded to 10.5% from 10.4% in the prior year. The improvement was driven by favorable contract mix and better performance, particularly in the aerospace segment where aircraft services operating earnings increased due to higher volume and a favorable service mix. As noted in management's discussion, operating earnings and margin in the defense segments are driven by changes in volume, performance, or contract mix.
While specific backlog figures are not provided in the authoritative financial packet, the company's business context indicates that the growing installed base of aircraft is expected to continue to drive increased demand for global aircraft services. Additionally, new long-term production contracts typically have lower margins initially, with margins generally increasing as learning curve improvements or other cost reductions are realized.
The company's strong cash flow generation provides flexibility for capital allocation priorities, including investment in growth and returning value to shareholders. Looking ahead, management expects increased pressure on the supply chain and hiring of skilled workers to meet expected demand. The company remains focused on executing its strategy and delivering value to shareholders.