* A reconciliation is not available. See the note on page 2 and Non-GAAP Financial Measures on page 6 for more information.
Operating Margin:
GAAP: Second quarter operating margin increased 50 bps to 9.0% driven by improved operational performance, partially offset by the impact of increased corporate unallocated items, including intangible amortization from mergers and acquisitions and LHX NeXt implementation costs.
Adjusted segment operating margin1: Expanded 80 bps to 15.6% due to improved operational and program performance across the SAS, IMS and CS segments, including LHX NeXt driven cost savings.
EPS:
GAAP: Second quarter EPS increased 5% to $1.92 due to an increase in operating income, partially offset by the impact of intangible amortization from mergers and acquisitions, LHX NeXt implementation costs and higher interest expense.
Non-GAAP1: Increased 9% to $3.24 driven by higher adjusted segment operating income1, partially offset by higher interest expense.
The largest differences between GAAP and Non-GAAP EPS are attributable to intangible amortization and LHX NeXt implementation costs.
Cash Flows:
Cash from Operations: Second quarter cash from operations was $754 million driven by net income growth and improved working capital performance.
Adjusted free cash flow1: Delivered $714 million in adjusted free cash flow1 driven by net income growth, improved working capital performance and adjustments for acquisitions and severance related costs.
SEGMENT RESULTS AND GUIDANCE:
SAS
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Second Quarter |
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Year to Date |
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2024 Guidance* |
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($ millions) |
2024 |
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2023 |
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Change |
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2024 |
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2023 |
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Change |
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Revenue |
$ |
1,707 |
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$ |
1,715 |
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— |
% |
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$ |
3,458 |
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$ |
3,370 |
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3 |
% |
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~$7,000 |
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Operating margin |
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12.6 |
% |
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9.8 |
% |
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280 bps |
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12.5 |
% |
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10.5 |
% |
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200 bps |
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low 12%* (Prior ~12%) |
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