“At RMS, the new radar awards Jim and Evan mentioned give us confidence to increase the full year sales outlook to between $17.7 million and $18.1 billion.”

In context

“Mark Kvasnak : Thanks, Evan. My segment level comments will focus on our updated increased full year 2026 sales and profit outlook and the key drivers for the accelerated growth we expect to realize across all 4 segments in the second half of this year. Starting with Aeronautics on Slide 5. We now project Arrow to deliver full year 2026 sales of $31.7 million to $32.7 billion, driven by strong F-35 production and sustainment volumes. The higher sales volume pushes the profit outlook up to between $3 billion and $3.08 billion. Margins are pegged modestly lower than our prior guidance as we scale up new contracts in F-35 production expand sustainment work and absorb the F-16 and C-130 challenges we realized in Q1. Excluding the favorable comparison impact created by the prior year losses Arrow has posted low single-digit year-over-year sales growth through the first half of 2026. Our updated outlook accelerates Arrow's growth rate to the mid-single digits for the second half of this year. The top end of Arrow's updated sales range implies an even stronger second half growth rate could be realized driven by a bump in sales that is dependent on timing of award for the next lot of F-35 production. Moving to Missiles and Fire Control on Slide 6. MFC had very strong growth in the second quarter. Sales were up 19%, and profit was up 24% year-over-year, fueling a raise to our full year outlook as the cadence of munitions production continues to accelerate. MSC's sales range has been adjusted to $16.5 billion to $16.9 billion, lifting the low end of our prior guidance. and the profit range is now $2.3 billion to $2.35 billion, reflecting continued mid-teens margin performance. Through the first half of 2026, MFC has grown sales 14% year-over-year. And at this updated outlook level, the second half 2026 growth rate will be even faster. Next is Rotary and Mission Systems on Slide 7. At RMS, the new radar awards Jim and Evan mentioned give us confidence to increase the full year sales outlook to between $17.7 million and $18.1 billion. The profit outlook at RMS is also raised and is now between $1.86 billion and $1.89 billion, keeping margins steady relative to the prior outlook. RMS sales during the first 6 months of 2026 were relatively comparable to the same period last year. Our updated full year outlook indicates RMS will accelerate to a mid-single-digit year-over-year growth rate in the second half, driven by the higher radar volumes and continued production ramps at Sikorsky. Wrapping up with space on Slide 8. In the second quarter, space grew sales 6% and profits 2% year-over-year. We now anticipate 2026 sales of between $13.85 billion and $14.05 billion supported by key wins on the next-generation interceptor, fleet ballistic missile and several classified national security programs. The space full year profit outlook was lowered to between $1.34 billion and $1.38 billion due to reduced ULA equity earnings because of the ongoing technical investigation of the Vulcan launch anomaly experienced earlier this year. Growth rates at space will follow the same trend as each of the other segments. The second half of 2026 will be stronger than the first half. At this updated outlook level, the mid-single-digit year-over-year sales growth that space posted in the first half will step up to the high single digits in the back half. So the takeaway is this. Our raised guidance is broad-based. Every segment has updated higher 2026 full year sales outlook, and 3 out of 4 segments have higher profit outlooks. On a year-over-year basis, every segment will grow faster in the second half of 2026, continuing the acceleration we posted in Q2. Evan, now back to you.”