General Dynamics (GD) 28 Jul 212021 Q2 Earnings call transcript

Good morning, and welcome to the General Dynamics Second Quarter 2021 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After the presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Howard Rubel, Vice President of Investor Relations. sir. ahead, go Please

These and quarter everyone. forward-looking XXXX our company's today operator, risks to General uncertainties. and statements to Dynamics represent outlook. the regarding second conference estimates are good you, subject Welcome some morning, the made estimates Thank call. Any

information factors Chairman the turn in Phebe call to our is Additional Chief the and Executive XX-Q Novakovic. to XX-K, regarding would With filings. like these and Officer, X-K that contained company's completed, I over

consensus better beat margin. the sell The we by year the than ago lower points $X.XX earnings million Aerospace everyone, but XX.X%, morning, improvement this was by million, Good company different billion, Howard. revenue thanks on quarter. reported on for basis of million. XXX perspective, Early you, Thank somewhat of diluted defense operating and $X.X us. and with last and X.X%. of up as $XXX $XX revenue million $XXX are or are Revenue planned. in the a million, $XXX morning, point revenue aerospace earnings in anticipated the year $XX XXX $XXX operating being operating income operating earnings margin entire defense down To up of million second quarter have up was up we on up pretty net year's $XXX share granular, of essentially per for Operating million, against earnings operating $X.XX net per is side. per on $XXX are a the XX.X%, than From flat slightly the million against share earnings are and be on side earnings are $X.XX. share basis quarter up earnings more second little the is by last side business much or a

basis, are up up with earnings points share the are X.X%, $XXX defense The revenue points. count, XX.X%. feed. On revenue anticipated a million are million this and lower year-to-date However, good XX coupled million operating operating a $XXX basis earnings numbers XX million X.X% $XXX operating $XXX than or or with up Overall to margins led margin and basis X.X%. is earnings is up up somewhat lower or or particularly

of activities On the quarter solid revenue basis XXX% the a a Cash the our aerospace to of down of of the these was are $XX cash The remarks. X.X%, in income is full a net forecast million million you business, flow I was the or and cash flow earnings from with year-to-date operating but strong very year side had or XX us at million is improvement the XXX% also from board. perspective on an margins. perspective; from to across us give $XXX basis up solid very income. The on operating results X% which for will of point year $XXX enabled year-to-date share net earnings raise start and quarter a end free

segments, have business So your add cash, backlog, and of the answer some taxes Jason guidance will performance updated I deployment move questions. let then into around around right the color provide color me and of cash, and

aerospace. First,

our the historical so understood. be some results where aerospace context, as a put put me in perspective Let could recent to into it performance

point reached ensuing COVID-XX, of we that April in over implemented in chain cuts then a were months there the production related recall, slowly resulted in to additional reduction this supply cuts clear that you issues. It year, low you their of production. certain Those last production quarter. was to subsequently demand result were As as we and became the cutting told

cuts. Gulfstream may second that quarter most for be pre-planned would the because challenging quarter you last the production also that recall, You of I told these

me short, Aerospace half as side billion had quarter. year we that, as quarter the and was news second the With turn in with of see earnings plan earnings in than a aircraft had results half. result. good increased production of aerospace less in $XXX XX% operating result and the fewer this the In deliveries, operating at to story, operating and deliveries. a of let for million the will $X.X $XXX of margin. the of second Revenue million, year planned post anticipated ago second On you renewed revenue half XX.X% the a COVID-demand more the revenue

a border are From On point perspective, alone perspective, improvement had From we operating In Gulfstream any earnings basis million the not book-to-bill did pure hand, XXX -- a on very even a X.X:X, [ph] order X:X. sales. spectacular. the it terms, is dollar $XX operating a had other did of in well. up XX.X% margins. or include if norm quarter of fleet stronger book-to-bill aerospace an

through As sales the the remainder from the that developed previously of and rolled on obvious truly that middle pipeline The first quarter in quarter over discussed, into February results. activity these quarter. second continued in was of accelerated as the

a new GXXX of continue GXXX to and superb. activity perspective, pipeline. and perform well. product basis and quality experience is interest, on growing high consistent are the to continue We a Margins a level From improving a

into be aircraft. X,XXX speak. to Rolls-Royce the for hours engine. We to GXXX the five we with to delivered aircraft remains on-track in test the but fourth XXX The accomplished, We of test have a particularly certification has approximately new customers quarter respect much service XXXX, entry remain the of as these from

have If a quarter first in well, we forward, be bring forward quarter may in deliveries Looking to able more current from demand. the fourth. meet to the goes few the third XXXX in we XX planned and all XX

[ph], Systems both Combat Land at Systems. Tactical quarter-over-quarter source of sequentially Land quarter, Combat well, Systems $X.X while the comparisons Combat Ordnance over to and year of Combat revenue Systems X.X% did the and Systems; are favorable. was up billion, all quite year-to-date the Turning Systems of European and has growth ago Vehicles primary

interesting It XX So, all in Systems good on revenue is also the a the year Combat ago observe grown over XX has the last quarter in basis. all quarter quarters very of to growth.

$X.X the then of of Combat at XX.X% Systems $XXX year, year. half over are first or the X.X% a margin. billion, first $XXX on million quarter higher volume last the basis XX revenue and million was for For Operating improvement up half earnings the it's point in

from and ago growth was also In also quarter XX.X% vehicles missions Stryker an the by half, of For Systems. a was quarter. IV once choice Vehicle Marine stable and Combat remains in total increases $XX operations; the leaving is quarter, DDG-XX million order or $XXX with for Systems by the million first also Columbia and the with of Abrams for year-to-date. Block Combat demand and year's in this million Combat with the Europe first the a impressive earnings in offset strong was way. a book-to-bill, over Systems; in volume. good V half. by Submarine revenue was It the of the leading led multiple are $XX X:X battle Systems last tank increasing perspective backlog. construction Virginia up and an the T-AO over decline Demand again engineering. up army Combat modest performance our Block increase up combat our is is products, remained particularly for year main $X.XX The U.S. billion sequentially

million in very $XX in last $XXX continued impressive up quarter group X.X%; this up the half, growth, quarter, first basis. quarter million revenue has was is million for year on Operating quarters up versus revenue or $XXX this margins earnings fact of a or the the XX on in operating For been the X.X%. ago X% were

Repair are and a This Systems. book-to-bill has strike tenant modest down Difficulty]. shortage strong ESVN associated or XX%. a the $XX of $XX revenue, and a in experienced X.X%. delays year performance of good local was mostly X:X, activity remedy the at the experienced $X.XX with of X:X of to $XX EBITDA is the chips segment are customer with revenues in XX.X%, is we The by which impressive remains report with and in book-to-bill our backlog in working and customer to the year. recall new of grew learning most the that from and on horizon. in business You contract programs is carry last performance line. and somewhat our good little a also In was the quarter, at nearly [indiscernible] strong. new new is which ramp awards. good pleased order state was half. Boat the back committed the awaiting performance. so Systems up order than in improving to [Technical ago million are Mission the and competitors Difficulty] less products The GDIT space margin total, we curve decision quarter Technology, and local we coming below the including submittals Mission may in the our with of on representing prospects first certain union state Electric IT making work. Most particularly continued of year, that technologies. on nearing relationship decline by quarter billion taxes for million, second the billion NASSCO sale is up an better light the Total taxes [Technical completion almost finally the the [ph] I'm strong of both oilers. driven has

not submittals, reflect at In a two to $X.X to contracts our pushing addition XXXX. half by approximately challenged are billion GDIT the These in delivering of does sizeable of in we delays order are that work XXXX made book anticipated now half second these protest, including awards first competitor.

in our some securing concludes been half modernization provide $XX now of customer strong and robust. respect [ph] to a the While the proposals call to further requests has wake proposal with billion submittal GDIT's first reflect to guidance. generally another infrastructure first for I'll Aiken, the my and submit nearly new half. very end the quarter of from for award opportunity remarks year. remarks This for CFO, in hefty turn Jason IT you and over the demand activity to significant Business has through new remain COVID. slower, the

strength Combat our Including and start on book with operating net you, morning. million Phebe and From performance on additional order international free an or quarter. Gulfstream perspective, collections the expenditures, Phebe, conversion. flow our as in flow cash capital I'll $XXX the of noted XXX% earnings large was cash generated Thank contract. $X.X Vehicle cash good our we billion over the

past conversion cash weighted range. of in outlook for derisks profile and the heavily You may somewhat several recall the so for cash reinforces our years, has year flow of free free half the XXX% quarter the flow to our to strong that back year, the been XX% that the

but year mentioned deployment; expenditures last I of remains or X.X% which our range sales, $XXX year sales. quarter were capital expectation the full the of down at that's X.X% in Looking capital in million of from

We on $XXX also dividends X.X to of repurchases shares; under in that million an paid million just price at the share. million repurchase year-to-date million $XXX X.X average shares spent $XXX approximately per and brings of

quarter. notes that have of $X.X end notes We shares repaid matured at proceeds in part in XXX.X the billion in with billion of We from million May. we outstanding in $X.X issued the May,

facilitate $X last We a billion those cash of second quarter of of just during year. than to and that CP but the $XXX debt fully $X down to this, we for of from the time repayment and billion under also more with year. consistent of notes with paper After end the issued this commercial before position saving of billion quarter and we the purposes, the $XX.X last expect the net end a liquidity retire all ended million quarter balance

$XXX for interest of million quarter in second $XXX to result, year the brings interest net consistent down is quarter for that in million. year expense the from year XX% activity quarter change for was first $XXX The $XXX as half a first expense were Order for rate the point, at expectation, the the story we year. interest expect of As the the XXXX; repaid of the million, expense be million again we the company a quarter in bring balance million approximately year to this outlook for same the on the with as in half XX, tax backlog notes down the We full and the book-to-bill in slightly of July whole. so no down once strong and XXXX. this debt our $XXX XX.X% continue beyond. period to At to our from a X:X $XXX our another second with and million, a

We quarter total the options X:X with book-to-bill As revenue that's billion. $XXX.X in contract total of Phebe value and Aerospace order group over on mentioned, up book-to-bill the was of a this IDIQ and recorded times while a activity with the Technologies led each last a year-over-year potential way finished And over backlog contracts growth. solid including Combat X% time $XX.X year. billion, two

the the quick a on note Finally, operating Technologies results in Group.

the resulted from customer recall our matter and last We year, to us of year, a and in remarks. seen quarter, we reversal, COVID-related the remarks, the the in in over of that X.X% to out been this fact scheduled rules Without organic international for caused the restrictions. wrap-up guidance That contract has the recognized for previously you this a growth my the $XX XXXX Phebe approximately I'll revenue formally Group that You'll of by concludes despite Technologies million closed it turn contract to million accounting give with travel activity would on the $XX quarter required over approximately and reverse back quarter. second recognized loss on dormant this an of have quarter. delays

Jason. you, Thank

do let revenue businesses, forecast, previous Combat previously an XX.X% additional we about $XXX expect revenue total be and has points figures operating of million X.X%. upside to another of if XX improved revenue forecast; of an of of Systems operating forecast. basis more but $XXX revenue Systems Now which Technology XX I down to billion is There $XX add of operating million we an basis year. and another with With the million billion forecast points point XX an basis margin; margin an annual of defense In our earnings. and around billion will can with XX give planes few revenue could $XXX with should of margin, XX.X%. additional an will will respect in million I'm be the margin margin repeat. margin some what of our squeeze which result below of $XX my margin, add a so out to operating to in we Marine operating not this me additional here points million around basis so updated you you $XX.X January have compared best all Aerospace, The are $XXX of X.X%. around $X.X annual an operating revenue from operating of so around give

rolls take our and an annual operating forecast XX.X%, the $XX.XX, will company-wide revenue of be $X.XX $XX.X about than So up around basis, questions. a to margin on see going a around we $X.XX overall concludes billion year. into this pleasure my to EPS your it to better That remarks and

Thanks, Phebe.

participants we so enter remind to how a the and reminder, a Operator, As participate. ask one you ask question chance to to participants please everyone that has one could follow-up, queue.

question sir. comes Please first Peter with from Absolutely, Instructions] ahead. Arment go Today's Baird. [Operator

and Phebe morning, Good yes. Hi, Jason.

Peter. Hi,

start that. with Nice follow-up results. to just related Phebe, Combat to maybe be my and will

the really a activity strong market of in international Just for -- your we're maybe, key of think about, also, you're seeing, but could seeing there you is -- I some performance platforms. lot just talk that that

think what growing Thanks. a a is terms how works environment on in Just [ph]? of budget but in domestically about you're Combat flatter based doing of lot how you your

primarily main our most outside vehicles, that driven and well is tank. thinking. by demand specifically, both our on Europe. our that of you factor So Combat that and the a large our of as and to are as longer-term -- Stryker, United the the of number domestically both platform army platform. track are developmental battle centered and is focused assigns again, programs particularly Abrams programs, Externally, vehicles, both continuing States, vehicles, all also, as to our as new grow, capabilities Abrams increasing, missions And know, There Stryker into wheeled

And follow-up. just as a

-- the Just this that I will guess, talked closing activity expect you that you Poland, [ph], of around around some you about, as do comments have year that discussions recent potentially? be would

Poland's there know, than a no battle And think Abrams you I neighborhood. deterrent So, tank. dangerous been very is main stronger the

XXX determine want we the closely that government Poland United suggested have ensure want. reports press that ultimately think they to States meet whatever for I working very they U.S. tanks with and

again, probably good informed out; that to then you think plus our be unfolds. come, initial and we'll but as is year solid more -- keep to close to estimate I more program

color. a the Thanks it. lot Appreciate for

question our ahead. Please go Morgan. And comes Seth J.P. next today with from Seifman

much, morning. very and good Thanks

Hi, Seth.

Hi. what looking on follow about the I specifically Phebe, that what schedule the could GXXX. for? risks we for you remarks, the program? needs what And up to in And milestones wanted be be the something to I done if on for wonder the the mentioned engine poses us to engine tell should you

is but know airplane to we time, the there go have have the engine are noted, would on process. continue new get a issues while development; always we with respect impact estimation as student to development any particular I ways still and to as don't and make certification, you of overall a at certification to they of the at I'm the progress particular through no timing. engine our that both, issue sure programs, being that So we difficult But moment,

Okay, into then, on -- been financial doesn't that There's results lot the the AJAX too and impact seem of financial discussion follow-up. going negative And Combat? much to of press way the segment's great. much. performance about a but really how in be program; just having Thanks a that of it that's as it's very playing a the

it has design interestingly process. Combat with you the army, emerged production, is know, and U.K. testing actively for noise during So, were vehicle during is transformational is and U.K. many in test; the with we're this programs very our working one that history on decade-long vehicles issues long and our constructively them enough, And identified program, one a closely this and engaged customer given and is two customer transformational vibration. of

our quite customer. of government both dealing So, we with will then closely are U.K. issues those with

much. very Thanks great. Hey,

Next is with Liwag go Please ahead. Morgan Kristine Stanley.

Hi, individual from Jason. on our or U.S. can Phebe international? of at color demands profile you of Phebe, versus Gulfstream provide the type and more the corporate or

Sure. orders, broad all some Fortune XXX our of across had The All generating cross a quarter's U.S. importantly, of the reasonable in this have more strong quarter, and core and we particularly customers balance the see new broadening the market section of a buyers. customers a of re-engaged.

that are is the all markets moment we in robust. the looking at So

orders? pricing be follow-up getting my on seem inventory, Since And there for doesn't power to new used Thanks. jets more are many is in pricing. you too

Well, let's about just say as pricing. talk a course, never of we matter,

about me let precious discipline, context I So, will and me my a long has rely that but not up you extremely back on continue. it's is you hill. once of always Price a been give pricing, Gulfstream pricing break history around about let to around and long little your pricing disciplined the control here. way am on its disciplined discipline

Phebe. Great. Thank you,

And from comes our with Vertical go Stallard next Please, today Robert question ahead. Research.

so Thanks Good morning. much.

morning. Good

of strength Phebe, order in a production? business that At just the feel at topic what would point on demand environment aerospace. the jet follow-up you the and raising intake comfortable

production Well, as then will, fall the and to we're fully this of year. to remainder production you in production the this those rates year in increasing on XX know, year, levels our We've we and you set next jet year. got well deliveries throughout go of Gulfstream business next for report

you follow-up a on maybe you pricing Okay. issue. -- And irrational -- on seeing front? the call just pricing new the might Are

people's comment look, on other on a adhere all compete to. and most first wise That's Well, injudicious we I tend of never behavior. stance not -- to we that's don't price mine. Hey word, [ph] not your to importantly

Okay, much. fair enough. Thanks so

ahead. with from Please, And question comes Sheila today our go Kahyaoglu next Jefferies.

second. was what's on semiconductor it the divestiture the one. about could If for Howard. you and Jason thank year-over-year Maybe, in then Hi, and for book-to-bill below good seems slightly chip morning on time, it and I appreciate but like organically we flat going there the issue, the is a mission. talk just Phebe,

that So, what maybe business talk you the in you're Phebe, and can about drivers what seeing? are

our chip some working anticipate the additional well our others -- we growth need have But business. some think we we divestiture absent and of address, noted, you to SATCOM assiduously forward. that I and given Well, be will to that going and we had But are you issue look I and best seen growth measured. as it have believe that

can this to to of the that assuming We to in And do organic on be signals, Phebe's I the that at good seen, business which ought point, add some they're point business the to some supply growth half. they've that for see overcome getting second that chain able year. issues out modest think of they'll full

Combat, second quarter on falling the one half. a up, just that the What's deceleration maybe off is implies I and X%. be there then half think, a really may And first It into also was Okay. there? good

will originally and Well, slightly and in I in only [Technical both guided outside think repeat think that's terms. We it's the States. States in the we impetus an United the burst increase behind the to logic what deliveries production percentage first a had vehicle in United Difficulty] second growth half half and

Okay, thank you so much.

And ahead. our next question with George from today Shapiro Please Research. Shapiro go comes

services Could for it you Phebe. year? imagine you and did on commented expect quarter? in of the what was rest Yes, up what the the I

mean services? aerospace in You

Gulfstream. in Yes

well, Yes, as services services both include aviation Gulfstream. as jet well our

recovery Middle some we [ph] Asia So, nice recovering here little and United East in order, in a more States, but slowly. the saw nice

billion had $X.X I we in revenue. think So, anticipated increase about

looking along the and that moment far we're bridge in a more think the I think is too I of... lines

at it year the Call million point. this for $XXX-ish

but U.S. strong. our touch a So, said, not Jason? tremendously I but estimate, very, just we original very it's has recovery. slower been international been off than That's the the as anticipated,

XXXX. of point, some I on of of in percent this tune were XX-ish it year at and importantly, the where we've a to think within, growth And seen this around George, nice time to I think that call we XX% it's people first watching last think over driven half or year, the that are this I levels rebound through the year

that's recovery XXXX. that So, the in the indication business strength good a here of of I think initial in

Okay. I'll stick with one. my Thank you.

Thanks, George.

Doug from Please, Harned ahead. with our today next question comes Bernstein. And go

morning. Thank you. Good

morning. Good

you the demand good, the where about I of very seeing you of use to mean, recently? us jets are bit up back that's business actually you they're about are that think talked of talk out a pent seeing slowed I the give come of a coming of By really as because you Or But from. [indiscernible]? it's in when psychology you sense coming differently Gulfstream customers? wanted can your where obviously people kind little to these been about demand orders go

So, in no has we fundamental use it business have the evidence aviation, premature been way, real that any think shift thinking would too way, to get about there be I of that that. clarity about

getting received change of a that what that a of apparent we almost kind apparent prospectively. almost of, always you if kind that is structural times a change You're never question It there to we've aviation? know is in goes a result pandemic critically and think number retrospectively. this about is change, is as business structural And of

believe I about it any premature so, to that is And pronouncements assume structural change.

think of -- unchanged. Now there last are seen aircraft expanded kinds in our interesting in XXX slowing I some replacement had That customers some I some I've was think but creating those your question. I market gotten industries an to into of remains COVID Fortune environment, think demand the historically is we've new essence opportunities the that psychology some year companies. the on cycle. entrants did that word, their obviously. and But back yes, have said, We number particularly our as see for the There of slowing of customers, in we've the same customers are was a

a higher the unit you is right see to aircraft revenue than bit Have difference a revenue do And you now? in that shift described towards related the versus mixed book-to-bill driving unit little you book-to-bill book-to-bill. a smaller what seeing and that,

into a Well, seen smaller movement particularly have not the we jets.

maybe XX% in-service of about course that order and the XXX. both in the demand really, think XXX, of the than for XXX XXX, it's and XXX book the was I less airplanes,

and since those pull from they all airplanes I really that So, have the then buy, our These that. they anything there's discern missions in we the think and in think to regular replace with don't back they about across one way the of our each buying are airplanes. particular customers the of need airplanes demand that it. strong missions a

good. Thank you. Okay, very

ahead. today comes next Strauss our go And Please, question Barclays. from with David

Thanks. Good morning.

Good morning.

Gulfstream coming looking COVID. production, Gulfstream set it talked prior cabin on kind on Are to production all in you Are above where I to [indiscernible] we you or large-cabin were level for at back GXXX. Phebe, the the taking down holistically side taking us, just about -- guess this and of you adjusting to large just that?

are basis. on we Follow-up, increasing reasonable a

Our in-service all and and our looking existing we're now of XXXX to-go the airplanes at of half orders not second but production at back so of levels, production in that solid that basis XX are that our each suggests contemplates one it every we of fleet. large-cabin in plan increased and itself will tell production we've you got production of and I production

Okay, all right. And Jason, quick follow-up.

at activity there, XXX% that or could year? of kind bit seeing and free flow cash you closer to Just given a maybe advances looking be this order little strength of Gulfstream even you're above the conversion

is strength XXX% activity for of to half the I somewhat of strength as derisks that I and the remarks, way range. think, to half David, I to getting it Gulfstream profile XX% the the the at think think the second and Yes, in alluded the the about first to

had You'll year fourth recall coming of not the the all, generation years, pretty over frankly our cash second the for in at our the past not second quarter. several flow in a is steep half half if most on cash free most, times even we've the in flow with free slope

design together that put I anything shift that's slope in and that the by encouraged not we've would really I'm So, year. by seen this

to confidence that I XX% it to to think getting even range. So, XXX% reinforced give does us,

the I think into could XXX% year. top don't towards that XXX% income get net range to a that you of percentage support I think guidance XX% out imply to frankly, increasing range us forward, little possibly I'd Phebe's above a as flow net with it want number. lean to income, about if you this cash going I the free of I'm think increasing that if but put to combine and And range. that can on know,

above overall improvement I still towards year range. beyond reinforces up I to free of that but to bottom XX% higher we the nicely and and think think us to this line, XXX% look cash flow in be next end XXX%, pushes maybe

Thanks Great. very much.

And Myles our Please, next question today comes ahead. Walton UBS. from go with

about you're XX.X% Phebe, first first morning. the the slightly being because inefficiencies and Good production in aerospace Thanks. sure quarter, the in in point. of the the half, you a included manufacturing I'm under quarter close second that, margins but talked had charge obviously

is R&D more it curious, would upside the in that some just I'm or of pickup in like other that there be [indiscernible]? expenses. area conservatism look an So should we barring half, Is in second

negative margins, think half So, margins margins the better low see some service our the than But at impact the now as we factors. is be airplane we certification. first out half first -- deliveries absence half when they we our two of will toward move point. [ph] as that about GXXX will is higher and of second from XXX One were a R&D

Okay, all at if availability delivery the right. particularly want can, point? give if XXX And you then, first some us you this the slots, to of on on maybe color just XXX,

with new doing became got meaningless out it We a because with lot airplane of deliveries -- that of new airplanes. the less practice

reinstitute think, I to, going not that. we're So,

You there? can't go back to

both steady as the to saw and the this and at was mid-February, there, I then, but And we this very looking in clear to order back starting in that first we're market, about been quarter think at we the at now think an throughout robust. you the if -- environment saw pipeline and about the it really, was it quarter we think that consistent and quarter. that you and go increase Yes, moment, and second it quarter consistent demand led is we've look

seeing we're a quite is XXX and of entrants North as strong. as Fortune So, customers, new said, as return America well our I

I So all market. in looking a all, pretty think at about we're good

you. Thank

next from Fargo. our Akers, Please, And question today comes ahead. Matt go Wells

broader a you guess, mentioned Yes. awards. Anything statement I of on or delayed customer market? the sort IT in this or by some question. about you said Is that that And Hi, of for then kind business. that is strength that particularly on were the seeing think of either the drove protest A good the point the you there. Thanks morning. you can the couple you kind can elaborate product? comment, anything to quarter I

sure. Yes,

but shield our with So, our contract proportionately quarter new contracts, notably more our across growth of X,XXX a the bit from awards. many in

new for have which often contract of to cycle; decision a the the there an many seen IT is awards an in two mantra. One, two, customer fundamental from increase be think work, we awards and in contract factors. protest in and increase So, the elongation significant, industry been propensity delay repeatedly. Early to we've and I seems seen has

our increased we got see growth have about when I we've hands those of for that $XX we've some in billion can but and I awaiting decision that got expectations both billion sort think about in of pipeline. coming, mentioned customer So, already the $XX

this this just revenue cycle protest, of growth. that So, that elongated going it's the drives all a to of bit increased given lumpier. and It's to little given propensity recognition make

Got it.

Okay, thank you.

go our ahead. And with next Suisse. Robert Spingarn comes Credit Please from question

morning. good Hi,

morning. Good

ships, would little with key much shipbuilding A in as it submarines be around where investments agree either to your this? will bit shipbuilding. Would to platforms applies tailored Plus, capabilities to Phebe, shipbuilding not of one Platform differentiators. organically be GD to but Navy is just any the peers strategic, yourself and that are on but from this inorganically sure and one with maybe the going position need stated make technologies future that or would you you surface additional agree this? I'm of

that. you color will around give insightful how not see I'm Plus. can I our ships. tell sure Platform any real I you we

Let's That to terms its years that has had surface the very, a in upgrade. of very multiple ship over [ph]. the an talk agile of ship in remains the instantiation versatile extraordinarily about improvements and ability is first DDG combatants

on block. we're So, already the

gave fight that of Our like an of capability, upgrade others address to type additional the platform that which free time it be missions. can different kinds evolves I suspect over that and ship

new and EPS, any pivotal up for we historically those to looked much oilers, a at I on that's fleet. what and United combatant I And submarines, on purpose-built integrating the tend focused continue have way With that's be focus the regular remain particular States mission. those ships, I capabilities submarine. it's will tend in to competitive the that auxiliary I'm know a thinking submarines don't think and respect the our has that ever technologies be that systemic is change to for pretty ships to order. Navy think [indiscernible], advantage or then a that's

history I think customer that it's that particularly like suspect and some a and of those shipbuilding ensuring that come. time construction, continue and can and very business complex have that you a I important when of and designing to that in capabilities you're submarine ship us for long your the design you and focus wants, on integrate business any to building we successfully new

please. Raquel [ph], one take more just call, we'll

Yes, go sir. today with Cowen. And Cai from our come ahead. von final Please, question will Rumohr

Yes. much. Thanks so

of the when normally to you strongest above-average to sector's do civil, book-to-bill fed expect adjudicated? funding protests quarter. which booking secondly, exposure you GDIT, is And where quarter kind two QX the an strong, have be So those the for is

the this So, on color extent? quarter some give we us expect what to should

you Cai, So, got [ph]. judge a to glass

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Terrific, so much. thanks

you our joining Thank for call today.

our As to please a quarter presentation, earnings includes refer General website guidance. course, release for of reminder, Dynamics highlights the which and revised the second the

questions, additional any you, I Thank at XXX-XXX-XXXX. have you be you, Thank everybody. reached can Raquel. If

We Yes, attending all, you, sir. Thank for well. presentation. as you thank today's

may disconnect now your lines. You

wonderful You have day. a