L3Harris Technologies, Inc.

Greetings. Welcome to the L3Harris Technologies first quarter 2026 earnings conference call. At this time, participants are in listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this call is being recorded. It is now my pleasure to introduce your host, Tony Calderon, Vice President, Investor Relations and Corporate Development. Thank you. Tony, you may now begin.

Thank you, Tiffany, and good morning, everyone. Joining me today are Chairman and CEO Chris Gabasic and CFO Ken Sharp. Earlier this morning, we published our first quarter earnings release detailing our financial results and updated 2026 guidance. We also filed our 10Q and provided a supplemental earnings presentation on our website. Before we begin, please note that today's discussion will include forward-looking statements subject to risks, assumptions, and uncertainties that could cause actual results to differ materially. For more information, please refer to our earnings release and SEC filings. We will also discuss non-GAAP financial measures, which are reconciled to GAAP measures in the earnings release. With that, let me turn it over to Chris.

Thanks, Tony, and good morning, everyone. I'd like to start by thanking Ken Bedingfield for his two-plus years as CFO and and for taking on the Missile Solutions Segment President role this past year. Ken has now focused full-time on expanding solid rocket motor production capacity in support of the Munitions Acceleration Council programs. I would also like to welcome our new CFO, Ken Sharp, to today's call. He joined the team in mid-March and has hit the ground running. I continue to believe L3Harris attracts the best talent in the industry and I'm excited about what we are building here. Also, I'd like to thank our employees for a great first quarter, one of the best we've had, and especially those employees that are forward deployed, supporting our warfighter. The global security environment is evolving rapidly, and the implications for our customers are increasingly clear. Across the Middle East, Europe, and the Indo-Pacific, The threat environment is driving greater urgency around readiness, resilience, and modernization. Our customers are focused on capabilities that can be quickly fielded, and they are looking for partners that can deliver. This positions us well to drive industry-leading growth. Our strategy is aligned with customer demand. The Trump administration has made it clear that rebuilding the defense industrial base is a national security imperative. The Pentagon and Congress are increasingly supportive of multi-year procurement authorities and other mechanisms to improve throughput across the ecosystem. In support of that imperative, there has been a step change in the DOW budget request driven by the need for affordable solutions that can be produced at speed and scale. With a $1.1 trillion base budget request and the $350 billion in reconciliation funding, the proposed budget sends a strong signal that our nation must invest in the industrial base. Specifically, the President's request reinforces demand signals for critical missiles and munitions, SDA tracking layer, compass call business jets, and tactical communication modernization. all of which align with our core strengths. At the same time, our allies are expanding their defense budgets. There is a greater urgency around modernization in Europe and other key international markets. Our international book to bill was 2.2 for the quarter. Over the past five years, we have embraced the unique trusted disruptor strategy that positions us between traditional primes and the new defense tech companies. We are delivering at the scale expected of a prime combined with the agility and rapid missionization of new defense tech companies. Our consistently strong financial results demonstrate the success of our strategy. Everything we've done for the past five years is positioning us for sustained growth for the next decade. We have purposefully positioned ourselves around the fastest growing priorities. including space sensing and missile defense, aircraft ISR missionization, resilient communications, and missiles and munitions. Our customers are moving with urgency. They need capability delivered at speed, at scale, and with proven performance. We are aligned with those requirements and we are executing against them now. Capacity is the new capability And that is what L3Harris has. Well, let's get into the details. Our backlog has almost doubled to over $40 billion, and that does not yet include the $25 billion of orders for the Munitions Acceleration Council programs, which are currently in negotiations. This record-breaking backlog also positions us to be more durable and predictable as we've increased to two times revenue coverage. In Q1, 2026, revenue grew over $600 million or 15% organically. Revenue has now grown organically in nine of the last 10 quarters. Our operating income increased by 125 million. We continue to expand and deliver industry-leading margins underpinned by strong program performance, even as we continue to accelerate investments in our business. Segment operating margins have now increased for the 10th consecutive quarter. Our focus on transformation and being agile meant reducing unnecessary costs and streamlining our operations. Revenue per employee has increased by almost 25% over the past couple years, driven by productivity improvements and aided by investments in technology, including AI. Earlier this year, we entered into an agreement to sell 60% of our space propulsion and power systems business, announced and closed a novel partnership, receiving a $1 billion investment from the Department of War, and filed a confidential Form S-1 with the SEC last night to take our missile solutions segment public. We accomplished all of this while delivering an impressive first quarter. Key orders this quarter highlight our strategy and action. We achieved a 1.4 book to bill with awards in missionized aircraft, solid rocket motors, and software-defined communication products. Within space and mission systems, we built on our fourth quarter marquee win, the South Korea Airborne Early Warning and Control Aircraft Program. We won another international multi-aircraft missionized business jet program just a few months later. This award with a NATO ally is valued at more than $2.2 billion with an initial 726 million order booked in the quarter. We also secured the Strategic Tanker and Transport Capability Award in Canada with two contracts totaling approximately 700 million to support the Royal Canadian Air Force. Within resilient communications, International demand for software-defined tactical communication products remains very strong. This quarter, we booked 460 million of international orders with three NATO member countries who prioritize resilient, low probability of detect communications in contested environments. In missile warning and missile defense, we've invested in building differentiated positions. To date, we've secured 56 SDA tracking satellites, driving growth in our space and mission systems business. We submitted our HVTSS follow-on proposal and look forward to a mid-year award. Within our ISR business, we have produced over 100 missionized business jets over the past decade. In the quarter, we delivered the first two Peregrine business jets to the Royal Australian Air Force to advance their airborne ISR and electronic warfare capabilities. Our business continues to grow with 20 missionized business jets in production. Turning to resilient communications, we have an installed base of 1 million software-defined radios worldwide. We're well positioned to increase that by 20% over the next couple years, supporting customer needs for secure, upgradable systems that operate seamlessly in contested environments. Our missile solution strategy, including the $1 billion Department of War investment, which we received in April, and our planned IPO represents a thoughtful and creative evolution in how we are positioning the business. We designed this model intentionally to move faster, unlock incremental shareholder value, and align more closely with customer priorities in a rapidly evolving environment. We continue to move quickly to accelerate the expansion of solid rocket motor capacity. Our customers are taking note of our investments, all of which are reflected in our 2028 financial framework. In February, we proudly hosted the Secretary of War in Camden, Arkansas, to highlight the progress on our solid rocket motor capacity expansion and to meet our patriotic workforce. Our missile solutions business is making excellent progress. Our team is in place, the S-1 is filed, negotiations on multi-year procurement frameworks are progressing, and we expect definitized contracts later this year. Our new missile company will be named AXIV, spelled A-X-Y-V. The AXIV name is inspired by the engineering of missile guidance positioning. The A for axes of X and Y, and the V for the velocity of the missile trajectory. AXID conveys how we think about the business with clarity of strategy, certainty of direction, and focus on agile execution. The company is built for momentum with a portfolio designed to deliver at scale. As you can see, we delivered a strong first quarter, reinforcing our line of sight to our 2026 commitments and the 2028 financial framework. Let me turn it over to Ken, who will walk us through our performance for the quarter and the momentum we are seeing across the portfolio.