0001193125-26-195984
SEC filingQ2 delivered 23% revenue growth to $1.1B with gross margins expanding to 29.0%, driven by higher sales volumes, JDAM pricing gains, and price realization outpacing material/labor inflation.
Net income climbed 23.0% to $134.0M, translating to diluted EPS of $2.19 compared to $1.78, underscoring earnings leverage from top-line expansion and margin gains. R&D spending exhibited variability tied to customer program timing across the broad base, consistent with ongoing support for current and future initiatives.
Cash generation proved robust, with net cash from operating activities more than doubling to $205.3M from higher earnings, after which $96.7M in capital expenditures—up significantly year-over-year—produced $108.5M free cash flow. This capex elevation supports a strategic new production site, a key investment slated for operational status in 2027 and driving elevated spending through H2 FY2026 and into FY2027.
Management affirms that operating cash flows, paired with revolving credit facility access and other borrowing capacity, fully fund ongoing operations, capital needs, and the foreseeable future. Regional alignment of production and supply bases mitigates exposure to oil price volatility and supply chain risks from geopolitical tensions, positioning the company resiliently amid external uncertainties.