Slide 1: Fourth Quarter 2024 Earnings Presentation
FOURTH QUARTER 2024 EARNINGS PRESENTATION JANUARY 30, 2025
Slide 2: Forward-Looking Statements; Non-GAAP Measures
Forward-Looking Statements; Non-GAAP Measures This presentation contains forward-looking statements within the meaning of federal securities laws made in reliance on the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Examples include, but are not limited to, statemen
Slide 3: Delivering Shareholder Value
DELIVERING SHAREHOLDER VALUE 2024 2025 2026 STRONG FOUNDATION FOR GROWTH Actuals Guidance Framework Strong and experienced leadership team 4% Organic and Board of Directors Revenue $21.3B $21.8B - $22.2B $23B 2023 - 2026 CAGR Mission aligned portfolio focused on national security and technology Driv
Slide 4: Delivering on 2024 Financial Commitments
DELIVERING ON 2024 FINANCIAL COMMITMENTS $24.2B 1.14x $34.2B Orders Book-to-Bill Total Backlog $21.3B $3.3B 15.4% $13.10 Revenue Adjusted Segment Adjusted Segment Non-GAAP Operating Income2 Operating Margin2 Diluted EPS2 $2.3B $886M $554M Adjusted Free Dividends Share Repurchases Cash Flow2 2) NGFM
Slide 5: Trusted Disruptor Strategy at Work
TRUSTED DISRUPTOR STRATEGY AT WORK… Space and Airborne Systems (SAS) Communication Systems (CS) TRUSTED TRUSTED 31-satellite GPS Next Generation constellation, Jammer Low Band win enhancing resilience enhances electronic for both military and DISRUPTIVE warfare capabilities for DISRUPTIVE civil user
Slide 6: Space & Airborne Systems
SPACE & AIRBORNE SYSTEMS ($ millions) Revenue Adjusted Operating Income and Margin $6,856 $6,869 $783 $812 11.4 % 11.8 % 2023 2024 2023 2024 2024 DRIVERS Revenue: flat Margin: increased 40 basis points + Intel & Cyber classified programs + LHX NeXt + FAA safety of flight networks + FAA safety of fli
Slide 7: Integrated Mission Systems
INTEGRATED MISSION SYSTEMS ($ millions) Revenue Adjusted Operating Income and Margin $6,630 $6,842 $838 $740 12.2 % 11.2 % 2023 2024 2023 2024 2024 DRIVERS Revenue: increased 3% Margin: increased 100 basis points + Advanced electronics for space and + Program performance munitions programs + LHX NeX
Slide 8: Communication Systems
COMMUNICATION SYSTEMS ($ millions) Revenue Adjusted Operating Income and Margin $5,070 $5,459 $1,229 $1,348 24.2 % 24.7 % 2023 2024 2023 2024 2024 DRIVERS Revenue: increased 8% Margin: increased 50 basis points + Demand for resilient + LHX NeXt communications and waveforms - Higher mix of domestic r
Slide 9: Aerojet Rocketdyne
AEROJET ROCKETDYNE ($ millions) Revenue Adjusted Operating Income and Margin $2,347 $294 $1,052 $122 12.5% 11.6% 2023* 2024 2023* 2024 2024 DRIVERS + Results are attributed to program execution across Missile Solutions and Space Propulsion and Power Systems *2023 results reflect a 5-month contributi
Slide 10: 2025 Guidance
2025 GUIDANCE Beginning in 1Q25, Non-GAAP diluted EPS metric excludes an adjustment for amortization of acquisition-related intangible assets that are in full year results for both years. We believe this better aligns to industry standard presentation of Non-GAAP diluted EPS and provides our investo
Slide 11: Capital Allocation Priorities Driving EPS Growth
CAPITAL ALLOCATION PRIORITIES DRIVING EPS GROWTH ACHIEVED 3.0x NET LEVERAGE TARGET Invest in the business 2024 Pension Adjusted Non-GAAP EPS (New) $8.01 • Capex: ~2.0% of revenue Revenue Growth Impact* 0.45 $0.80 Pay competitive dividend Margin Improvement* 0.35 operational • Increased 23 consecutiv
Slide 12: 2025 Supplemental Information
2025 SUPPLEMENTAL INFORMATION 2025 2024 Guidance Actuals FAS/CAS operating adjustment ~$15 million $28 million 1 Non-service FAS pension income ~$260 million $322 million Net FAS/CAS pension ~$275 million ~$340 million Net interest expense ~$630 million $675 million Effective tax rate on non-GAAP ea
Slide 13: Adjusted EPS
ADJUSTED EPS 2 2 Full Year Full Year 2024 2025 1 Non-GAAP EPS (Prior) $13.10 $13.70 - $14.00 YoY Growth % 6% 6%* Intangible amortiziation, net of income taxes (3.40) ~(3.15) 1 Non-GAAP EPS (New) $9.70 $10.55 - $10.85 YoY Growth % 5% 10%* 2 FAS/CAS pension income (1.69) ~(1.30) 1 Pension Adjusted Non
Slide 14: Leverage Reconciliation
LEVERAGE RECONCILIATION (In millions) 2024 Full Year Short-term debt $ 515 Current portion of long-term debt, net 640 Long-term debt, net 11,081 Total debt 12,236 Less cash and cash equivalents 615 Net debt (A) $ 11,621 Net income $ 1,512 Adjustments: Income taxes 85 Net interest expense 675 Depreci