May 12th, 2026

The call conveyed a strongly positive operational and financial start to 2026: record first-quarter revenue, double-digit improvement in adjusted EBITDA margin toward Vision 2027 goals, robust commercial aerospace recovery, solid defense/missile momentum, improved EPS and cash generation, and ample liquidity. Key near-term headwinds include remaining destocking, timing-related softness in some defense subsegments, and the timing uncertainty of booking large missile framework orders and M&A execution. On balance, the positive execution, margin expansion and sizable backlog/RPO outweigh the manageable near-term challenges.

Company Guidance

Management reiterated full‑year 2026 revenue guidance of mid‑ to high‑single‑digit growth, noting Q1 was a strong start with record revenue of $209 million (≈9% YoY per the CEO; 8.6% YoY per the 10‑Q), driven by stronger‑than‑expected commercial aerospace and some destocking that was pulled into Q1; they expect destocking to still impact the remaining three quarters of 2026 with quarter‑to‑quarter growth now targeted in the mid‑ to high‑single‑digit range depending on destocking. Key supporting metrics called out on the call: RPO of almost $1.1 billion (up $86M YoY), bookings of $175M in Q1 and $925M trailing 12 months (trailing 12‑month book‑to‑bill 1.1; defense book‑to‑bill 1.2; commercial 1.0), Q1 gross margin 26.9% and adjusted EBITDA 16.9% (on the path to an 18% adjusted EBITDA target for 2027), Q1 adjusted operating margin 8.6%, Q1 GAAP EPS $0.64 / adjusted EPS $0.75, expected facility consolidation run‑rate savings of $13M by end‑2026, and available liquidity of $384M under a $650M credit facility.