0000202058-26-000035
SEC filingStrong quarter with double-digit revenue growth and significant operating leverage, though cash flow was negative due to working capital and capex.
Revenue for the first quarter of fiscal 2026 was $5.7 billion, an increase of 11.9% compared to $5.1 billion in the prior year quarter. The growth was primarily driven by higher volume and improved program performance in the Space & Mission Systems (SMS) segment, partially offset by a shift in mix reflecting higher volume in lower margin programs associated with program timing.
Net income rose 32.6% to $512 million, and diluted earnings per share increased 33.3% to $2.72, compared to $2.04 in the prior year quarter. The growth was aided by a lower effective tax rate, in addition to the operating income improvement.
Net cash used in operating activities was $95 million in the first quarter of fiscal 2026, compared to $42 million used in the prior year quarter. The increase in cash used was primarily due to working capital outflows and higher capital expenditures. Capital expenditures were $99 million, up from $59 million in the prior year quarter. Free cash flow was negative $194 million, reflecting the higher capex and working capital timing.