LHX - Capacity is the Name of the Game; Model Update

研报英文原文证据摘录

LHX - Capacity is the Name of the Game; Model Update

Management remains confident that

strong geopolitical demand, bipartisan support, and high missile usage underpin a durable,Cash & Equivalents ($M) $590

favorable long-term contracting outlook.Total Debt ($M) $11,357

Minority Interest ($M) $64 Planned Missile Solutions IPO and new branding (AXYV) reflect a strategic evolution

to unlock value and enhance agility. LHX disclosed it has filed a confidential S-1 to

take its Missile Solutions segment public, alongside a $1B DoW investment and a broader 5 Page Document

partnership structure. The new standalone entity will be named AXYV, with the name derived

from missile guidance engineering. Management framed the IPO as a deliberate move

Reasons for this report to accelerate growth, align more closely with customer priorities, and unlock shareholder

value while enabling faster decision-making and investment in capacity. This structural shift

✓ Earnings Recap signals confidence in sustained missile demand and positions the business to scale more

✓ Model Update aggressively in a rapidly evolving defense environment.

Guidance. Management is raising their GAAP Diluted EPS while reaffirming the remainder

of their guidance. GAAP Diluted EPS is being raised by 10 cents at the low and high end

of the guidance range from $11.30-$11.50 to $11.40-$11.60. 2026 revenue of $23-$23.5B is

being held since the Investor Day. FCF expectations are being held at $3B with an emphasis

on cash generation being back half weighted. The guidance does not yet contemplate

impacts from the planned Missile Solutions IPO, DoW investment, or planned sale of a

majority stake in the Space Propulsion Business.

Estimate Changes. We are slightly raising our FY26 revenue estimates to $23.6B (from