Slide 1: Second Quarter 2025 Earnings Presentation
SECOND QUARTER 2025 EARNINGS PRESENTATION JULY 24, 2025
Slide 2: 2Q25 Quarter Highlights
2Q25 QUARTER HIGHLIGHTS Orders of $8B driving record backlog; book-to-bill ratio of 1.5x, the highest since the merger Organic growth up 6% and revenue guidance increase driving meaningful progress towards our 2026 Financial Framework; AR Missile Solutions up 15% organically Segment operating margin
Slide 3: Delivering Shareholder Value
DELIVERING SHAREHOLDER VALUE 2025 2026 2026 Guidance Framework Updated Outlook Trusted Disruptor strategy ensures we ~$21.75B are agile, fast, and align with key defense Revenue $23B $23B (Prior: $21.4B - $21.7B) priorities Drive profitable growth, ensuring we continue to deliver on commitments to A
Slide 4: Second Quarter 2025 Financial Results
SECOND QUARTER 2025 FINANCIAL RESULTS $8.3B 1.5x $35.4B $5.4B Orders Book-to-Bill Total Backlog Revenue $863M 15.9% $2.78 $574M Adjusted Segment Adjusted Segment Non-GAAP 1 Adjusted Free 1 1 1 Operating Income Operating Margin Diluted EPS Cash Flow Year-to-Date Capital Deployment $453M $822M Dividen
Slide 5: Trusted Disruptor Strategy at Work
TRUSTED DISRUPTOR STRATEGY AT WORK… Communication Systems (CS) Integrated Mission Systems (IMS) TRUSTED TRUSTED Germany communications Five Skyraider II modernization agreement aircraft delivered to U.S. Air Force Special Operations Command DISRUPTIVE DISRUPTIVE Signed strategic Delivered collaborat
Slide 6: LHX & Golden Dome: Built to Deliver... Proven to Win
LHX & GOLDEN DOME: BUILT TO DELIVER... PROVEN TO WIN SPACE VEHICLES PROPULSION & DACS PAYLOADS AND COMMS SPACE-BASED INTERCEPTORS Numerous Golden Dome capabilities across the company IR SENSOR PAYLOAD FACILITY LOW-EARTH ORBIT SATELLITE FACILITY SRM CAPACITY EXPANSION Significant investment laying th
Slide 7: Communication Systems
COMMUNICATION SYSTEMS ($ millions) Revenue Adjusted Operating Income and Margin $1,346 $1,376 $329 $336 24.4% 24.4% 2Q24 2Q25 2Q24 2Q25 2Q25 DRIVERS Revenue: increased 2% Margin: flat + Increased international demand for + Higher volume resilient communication equipment and + LHX NeXt related wavefo
Slide 8: Integrated Mission Systems
INTEGRATED MISSION SYSTEMS ($ millions) Revenue Adjusted Operating Income and Margin $1,671 $1,622 $1,533 $200 $214 12.0% 13.2% 2Q24 2Q25 2Q24 2Q25 Organic CAS Divestiture 2Q25 DRIVERS Revenue: decreased 3%, increased 6% Margin: increased 120 basis points organically + Monetization of legacy end-of-
Slide 9: Space & Airborne Systems
SPACE & AIRBORNE SYSTEMS ($ millions) Revenue Adjusted Operating Income and Margin $1,707 $1,787 $1,675 $215 $220 12.6% 12.3% 2Q24 2Q25 2Q24 2Q25 Organic Antenna Products Divestiture 2Q25 DRIVERS Revenue: increased 5%, 7% organically Margin: decreased 30 basis points + Increased FAA volume in Missio
Slide 10: Aerojet Rocketdyne
AEROJET ROCKETDYNE ($ millions) Revenue Adjusted Operating Income and Margin $698 $633 $621 $81 $93 13.3% 12.8% 2Q24 2Q25 2Q24 2Q25 Organic AOT Divestiture 2Q25 DRIVERS Revenue: increased 10%, 12% organically Margin: increased 50 basis points + Increased production volume across key + Improved perfo
Slide 11: 2025 Guidance
2025 GUIDANCE CONSOLIDATED SEGMENT 1 Adjusted segment Revenue Operating Margin Revenue 1 operating margin CS $5.6B - $5.7B ~25% ~$21.75B mid - high 15% (Prior: $21.4B - $21.7B) IMS ~$6.4B ~12% (Prior: ~$6.3B) (Prior: high 11%) Non-GAAP 1 1 FCF Diluted EPS SAS ~$7.1B low 12% (Prior: $6.9B - $7.1B) $1
Slide 12: 2025 EPS Guidance Bridge
2025 EPS GUIDANCE BRIDGE Our updated 2025 non-GAAP diluted EPS guidance reflects an increase of 200 to 300 basis points to the effective tax rate, resulting in a headwind of ~$0.30 at the midpoint. This impact is more than offset by strong first-half performance and increased guidance, driving a net
Slide 13: 2025 Supplemental Information
2025 SUPPLEMENTAL INFORMATION 2025 2025 Current Prior FAS/CAS operating adjustment ~$15 million ~$15 million Non-service FAS pension income ~$285 million ~$270 million Net FAS/CAS pension ~$300 million ~$285 million Net interest expense ~$600 million ~$600 million Effective tax rate on non-GAAP earn
Slide 14: EPS Reconciliation
EPS RECONCILIATION 2Q 2Q YoY 2024 2025 Growth % GAAP Diluted EPS $1.92 $2.44 27% LHX NeXt implementation costs 0.25 0.21 Merger, acquisition, and divestiture-related expenses 0.11 0.07 Tax & other 0.12 0.06 1 Non-GAAP Diluted EPS $2.40 $2.78 16% Net FAS/CAS pension (0.36) (0.36) 1 Pension Adjusted N
Slide 15: 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