Lockheed Martin Corporation

Good day and welcome everyone to the Lockheed Martin first quarter 2026 earnings results conference call. Today's call is being recorded. If you would like to ask a question, please press star, then one now. At this time for opening remarks and introductions, I would like to turn the call over to Mark Kavaznik, Vice President, Investor Relations. Please go ahead.

Thank you, Sarah, and good morning. I'd like to welcome everyone to our first quarter 2026 earnings conference call. Joining me today on the call are Jim Taklett, our chairman, president, and chief executive officer, and Evan Scott, our chief financial officer. Statements made today that are not historical facts are considered forward-looking statements and are made pursuant to the safe harbor provisions of federal security laws. Actual results may differ materially from those projected in the forward-looking statements. Please see Lockie Martin's SEC filings for a description of some of the factors that may cause actual results to differ materially from those in the forward-looking statements. We've posted charts on our website today that we plan to address during the call to supplement our comments. These charts also include information regarding non-GAAP measures that may be used in today's call. Please access our website at www.lockheedmartin.com and click on the investor relations link to view and follow the charts. With that, I'd like to turn the call over to Jim.

Thanks, Mark. Good morning, and thank you to everyone on the line for joining us on our first quarter 2026 earnings call. First, I'd like to highlight this week's breaking news on a recent win for our aeronautics business. Just this past Monday, Lockheed Martin signed a $1.5 billion contract with the Peruvian Air Force for 12 Block 70 F-16 fighters, with an opportunity for a second squadron of an additional 12 aircraft. This is the first F-16 direct commercial sale contract in decades and broadens our footprint in the modernizing Latin American region. This was a collaborative partnership with the U.S. government, and we continue to work with the Peruvian government in executing on its sovereign acquisition process. Overall, we reported solid results for the quarter as demand for our premier defense technologies and space exploration capabilities remains high. This elevated demand is supported by the highly effective performance of our platforms and systems that has again been demonstrated during this first quarter. The Artemis II crew and the dedicated teams at NASA completed their historical mission in a near-flawless flight and recovery using our Orion spacecraft. Artemis launched on April 1st, carrying four astronauts on a 10-day mission around the moon, the first crewed spaceflight beyond low Earth orbit since 1972, and the farthest humans have ever traveled from Earth. The Orion spacecraft served as the crew transport and habitation module throughout the entire mission, traveling thousands of miles beyond the moon before safely splashing down in the Pacific Ocean. Orion is the only vehicle capable of traveling into deep space and back while safeguarding human life. It will enable future Artemis missions and ultimately exploration of the Moon, Mars, and beyond. We are now assembling Orion for Artemis III, IV, and V, cementing Lockheed Martin's role in sustained deep space discovery. While Artemis II reflects what's possible at the edge of human space exploration, It also underscores that Lockheed Martin's portfolio is delivering extraordinary capabilities in the most demanding conditions, both on Earth and in space. Additionally, Lockheed Martin platforms have performed extremely well in very demanding missions during recent U.S. and allied operations in active conflict zones. The F-22 Raptor and the F-35 Lightning establish air superiority when called upon. our C2BMC and Aegis systems, combined with THAAD and PAC-3 interceptors, delivered layered air and missile defense of civilian infrastructure and populations, military bases, and ships at sea. Moreover, the Black Hawk Combat Rescue Helicopter and C-130 aircraft supported successful combat search and rescue operations in extremely difficult conditions in hostile territories. The operational relevance of these systems has direct implications for our business. In the weeks following PRISM's first use in active operations, we announced plans to quadruple production to meet accelerated demand. This is in addition to the commercially inspired long-term agreements we already entered into with the Pentagon to rapidly expand the production capacity for PAC-3 and THAAD interceptors by 3X and 4X respectively. In light of these multi-year framework agreements, we are in the process of construction and or modernization of more than 20 facilities across several states dedicated to achieving these greatly expanded rates of production of these sophisticated munitions. These investments are expected to support thousands of skilled manufacturing jobs across our defense industrial base, provide accretive investment opportunities for our suppliers, and enable the addition of second and third sources within our supply chain to enhance the resiliency of our production system. For its part, the F-35 also continues to execute critical missions, delivering fifth generation air-to-air and air-to-ground capabilities unmatched by any other aircraft. The platform's combination of stealth, advanced sensors, and AI-assisted targeting enables pilots to operate with decisive advantage. In the first quarter, we secured a new F-35 production contract for long lead items, and the initial presidential budget request includes increased F-35 quantities. Rotary wing capability is proving equally valuable, with the family of Blackhawks supporting critical search and rescue, personnel insertion, and resupply missions. We are also far down the road in converting the Blackhawk to both pilot-optional and fully autonomous operations, to capitalize on its range, payload, and survivability in contested environments. These examples are testaments to our strategic focus on mission execution and our commitment to discipline investment to drive 21st century digital and physical technology into tried and true major platforms. This initiative is designed to provide our customers with the most capable, integrated, and reliable systems that can be quickly assimilated into existing force structures, training programs, and logistical infrastructure. The urgency of the current operational environment coupled with the strong performance of franchise Lockheed Martin systems has also spurred the rapid progression of initiatives that were already underway with our customers on long-term production commitments. We recently announced a $4.8 billion contract to further accelerate production for PAC-3, a tangible example of how we partner with our customers and advance from novel framework to contract to continue increasing the scale and speed at which we can deliver. The long-term demand inherent in the munitions agreements allow us to confidently expand our investments, boost internal capabilities with robotics, and strengthen supply chain resilience, in turn delivering long-term shareholder value to Lockheed Martin's shareholders. Chart 3 outlines our collaborative approach with the U.S. government to address these urgent requirements and illustrates how acquisition transformation is enabling us to accelerate and expand production. These munitions agreements provide risk mitigation for industry and efficiency and speed for government, a combination that benefits customers and shareholders alike. We also remain committed to advancing emerging technologies. Since launching the Lockheed Martin Venture Fund, we have backed more than 120 companies, with many now serving as Lockheed suppliers. In the past two years, we've added 25 new companies and are expanding the fund's capacity to a billion dollars, more than double its formal size. Our expertise in innovation and scaling to production at scale enables us to serve as trusted partners for the next generation of solutions from startup, and other new entrants to the industry. Building on this momentum, earlier this week we announced a further strategic investment in Fordham Technologies to bring to market a fully integrated end-to-end turnkey counter UAS solution which seamlessly fuses detection, control, identification, and mitigation capabilities into a single commercially available offering. This partnership will accelerate Fordham's ability to scale production. will also incorporate its products into our deployment-ready integration with Lockheed Martin's Sanctum counter-UAS ecosystem. This is just the latest example of reinforcing our commitment to invest in innovative technologies that deliver rapid, reliable solutions for new threats. Our commitment to developing advanced capabilities is consistent with the budget environment, where there continues to be broad support for national defense initiatives. The administration's priorities, accelerating munitions production, strengthening integrated air and missile defense, advancing next-generation aircraft, expanding space capabilities, and preserving long-range precision strike, are reflected in this budget request. These priorities are all well aligned with our already longstanding initiatives and product sets. The Department of War's budget rollout that was released on Tuesday reflects continued strong demand for our core franchise programs. At a broader level, the administration's prioritization of defense industrial-based investment and modernization spending provide the constructive backdrop as we execute against our significant backlog. We are well positioned. Our strategy has taken hold, our solutions are in high demand, and we remain confident in our full-year guidance for 2026. Before turning it over to Evan, I'll cover our top focus areas for the year. With that significant backlog and demand continuing to grow, enhancing and accelerating execution is imperative for us. Packed reproduction is already up more than 60% from just two years ago, and we remain focused on converting demand in a long-term growth while executing with discipline in a dynamic environment. Next is innovation. a key feature of our 21st century security vision encompassing AI solutions for enterprise efficiency, digital thread integration, model-based engineering to accelerate our program timelines, and a commitment to open systems architectures that allow us and our partners to rapidly integrate new technology from us or others and continuously enhance capabilities, thereby strengthening deterrence. Third, our partnerships are in full alignment with the department's acquisition transformation strategy. This is enabling a government industry model that we have long advocated for and under which we were the first to sign a multi-year agreement. International demand also remains robust as budgets expand and allies and partners across the globe continue to seek out our superior systems and capabilities. Finally, our people are the foundation of everything we do. Tens of thousands of workers develop, build, and sustain our systems, and we're deliberately growing this workforce by investing in training pipelines, collaborating with community colleges and technical schools, and creating long-term manufacturing careers. Our new Munitions Acceleration Center that we're building in Camden, Arkansas, exemplifies this effort, serving both as a production facility and a development hub for the next generation of defense talent that will use the latest in AI and robotics to do their jobs. Now I'll turn the call over to Evan to walk us through the Q1 financial results and outlook.