Slide 1: First Quarter 2025 Conference Call
First Quarter 2025 Conference Call Kathy Warden Ken Crews Chair, Chief Executive Officer Corporate Vice President and President and Chief Financial Officer April 22, 2025 Rendering of Advanced Anti-Radiation Guided Missile Extended Range (AARGM-ER)
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation and the information we are incorporating by reference, and statements to be made on the earnings conference call, Business and Operational Risks contain or may contain statements that constitute “forward-looking statements” within the meaning of the Priva
Slide 3: Enterprise Summary
Enterprise Summary Record backlog of $92.8 billion provides growth visibility Portfolio well-aligned to accelerating growth in global defense budgets B-21 continues to demonstrate solid test results; LRIP EAC growth reflects a manufacturing process change to enable accelerated production ramp, and i
Slide 4: Sales
Sales Three Months Ended March 31 ($M) 2024 2025 ▲% Aeronautics Systems $3,044 $2,814 (8)% Defense Systems 1,737 1,805 4% $10,133 Mission Systems 2,659 2,807 6% $9,468 Space Systems 3,149 2,568 (18)% Intersegment Eliminations (456) (526) Total $10,133 $9,468 (7)% 2024 2025 First quarter sales reflec
Slide 5: Segment Operating Income and Margin Rate
Segment Operating Income(1) and Margin Rate(1) Three Months Ended March 31 ($M) 2024 2025 ▲% 493bps B-21 Adjustment Aeronautics Systems $306 $(183) NM Defense Systems 156 179 15% 10.9% Mission Systems 378 361 (4)% Space Systems 330 283 (14)% 6.0% Intersegment Eliminations (66) (72) Total $1,104 $568
Slide 6: Q1 Diluted EPS Bridge
Q1 Diluted EPS Bridge Q1 2024 Diluted EPS $6.32 B-21 Adjustment (2.74) Segment Volume(1) (0.14) Corporate Unallocated(1) (0.11) Net Pension(2) 0.12 Interest and Other (0.13) Q1 2025 Diluted EPS $3.32 1. Segment Volume and Corporate Unallocated excludes impacts from B-21 Adjustment. 2. Net Pension ta
Slide 7: 2025 Company Level Guidance
2025 Company Level Guidance(1) ($M), except per share amounts As of 4/22/2025 Sales $42,000 — $42,500 Segment operating income(2) $4,200 — $4,350 Prior: $4,650 - $4,800 MTM-adjusted EPS(2) $24.95 — $25.35 Prior: $27.85 - $28.25 Free cash flow(2) $2,850 — $3,250 Continue to expect 3% to 4% organic sa
Slide 8: 2025 Segment Guidance
2025 Segment Guidance(1) As of 4/22/2025 Sales ($B) OM Rate % Aeronautics Systems Low $13 Low to Mid 6% Prior: Mid to High 9% Defense Systems(2) Low $8 Mid to High 9% Mission Systems ~$12 Mid 14% Space Systems ~$11 High 10% Intersegment Eliminations ~($2.1) High 13% Re-affirming sales expectations a
Slide 9: Summary
Summary Rising global defense budgets continue to increase demand for our solutions Well positioned to advance Administration’s goal of peace through strength due to our technology innovation and advanced manufacturing capacity Record backlog provides foundation for continued profitable growth Laser
Slide 10: Appendix
Appendix First Quarter 2025 Conference Call 10
Slide 11: 2025 Supplemental Guidance
2025 Supplemental Guidance(1) ($M) As of 4/22/2025 Total Net FAS/CAS pension adjustment(2) ~$800 Unallocated corporate expense: Intangible asset amortization and PP&E step-up depreciation ~$(90) Other items ~$(280) Training Services divestiture benefit ~$205 Operating income $4,300 — $4,450 Prior: $
Slide 12: Segment Realignment
Segment Realignment Segment Sales ($M) 2023 2024 Three Months Ended REALIGNED, Total Year Total Year Mar 31 Jun 30 Sep 30 Dec 31 effective July 1, 2024(1) Aeronautics Systems $10,786 $2,969 $2,963 $2,878 $3,220 $12,030 Defense Systems 8,289 1,990 2,153 2,084 2,333 8,560 Mission Systems 10,895 2,659
Slide 13: Segment Realignment
Segment Realignment (3) Segment Operating Income ($M) 2023 2024 Three Months Ended REALIGNED, Total Year Total Year Mar 31 Jun 30 Sep 30 Dec 31 effective July 1, 2024(1) Aeronautics Systems $(473) $297 $295 $298 $292 $1,182 Defense Systems 829 187 231 196 252 866 Mission Systems 1,609 378 361 390 46
Slide 14: Non-GAAP Definitions
Non-GAAP Definitions Non-GAAP Financial Measures Disclosure: This presentation contains non-GAAP (accounting principles generally accepted in the United States of America) financial measures, as defined by SEC Regulation G and indicated by a footnote in this presentation. Definitions for the non-GAA
Slide 15: Non-GAAP Reconciliations
Non-GAAP Reconciliations Segment Operating Income Three Months Ended March 31 ($M) 2024 2025 Total sales $10,133 $9,468 Operating income $1,071 $573 Operating margin rate 10.6% 6.1% Reconciliation to segment operating income: FAS/CAS operating adjustment $(6) $(63) Unallocated corporate expense: Int
Slide 16: Non-GAAP Reconciliations
Non-GAAP Reconciliations Free Cash Flow Three Months Ended March 31 ($M) 2024 2025 ▲% Net cash used in operating activities $(706) $(1,565) (122)% Capital expenditures (270) (256) (5)% Free cash flow $(976) $(1,821) (87)% First Quarter 2025 Conference Call 16
Slide 17: First Quarter 2025 Conference Call
First Quarter 2025 Conference Call 17