SUMMARY FINANCIAL RESULTS AND 2024 GUIDANCE
| Second Quarter | Year to Date | 2024 Guidance* | |||||||||||||||||||||||
| ($ millions, except per share data) | 2024 | 2023 | Change | 2024 | 2023 | Change | |||||||||||||||||||
| Revenue | |||||||||||||||||||||||||
| Space & Airborne Systems | $ | 1,707 | $ | 1,715 | $ | 3,458 | $ | 3,370 | |||||||||||||||||
| Integrated Mission Systems | 1,729 | 1,735 | 3,398 | 3,435 | |||||||||||||||||||||
| Communication Systems | 1,346 | 1,289 | 2,640 | 2,452 | |||||||||||||||||||||
| Aerojet Rocketdyne | 581 | — | 1,123 | — | |||||||||||||||||||||
| Corporate eliminations | (64 | ) | (46 | ) | (109 | ) | (93 | ) | |||||||||||||||||
| Revenue | $ | 5,299 | $ | 4,693 | 13 | % | $ | 10,510 | $ | 9,164 | 15 | % | $21.0B - $21.3B (Prior: $20.8B - 21.3B) | ||||||||||||
| Operating income | |||||||||||||||||||||||||
| Space & Airborne Systems | $ | 215 | $ | 168 | 28 | % | $ | 431 | $ | 355 | 21 | % | |||||||||||||
| Integrated Mission Systems | 206 | 162 | 27 | % | 396 | 347 | 14 | % | |||||||||||||||||
| Communication Systems | 329 | 325 | 1 | % | 639 | 591 | 8 | % | |||||||||||||||||
| Aerojet Rocketdyne | 75 | — | n/a | 147 | — | n/a | |||||||||||||||||||
| Unallocated items | (349 | ) | (255 | ) | (759 | ) | (500 | ) | |||||||||||||||||
| Operating income | $ | 476 | $ | 400 | 19 | % | $ | 854 | $ | 793 | 8 | % | |||||||||||||
| Operating margin | 9.0 | % | 8.5 | % | 50 bps | 8.1 | % | 8.7 | % | (60) bps | |||||||||||||||
| Adjusted segment operating income1 | $ | 825 | $ | 694 | 19 | % | $ | 1,613 | $ | 1,332 | 21 | % | |||||||||||||
| Adjusted segment operating margin1 | 15.6 | % | 14.8 | % | 80 bps | 15.3 | % | 14.5 | % | 80 bps |
(Prior: > 15%) | ||||||||||||||
| Effective tax rate (GAAP) | 5.9 | % | 5.6 | % | 30 bps | 4.1 | % | 7.4 | % | (330) bps | |||||||||||||||
| Effective tax rate (non-GAAP1) | 12.9 | % | 13.3 | % | (40) bps | 13.0 | % | 13.4 | % | (40) bps | |||||||||||||||
| EPS | $ | 1.92 | $ | 1.83 | 5 | % | $ | 3.40 | $ | 3.60 | (6 | %) | |||||||||||||
| Non-GAAP EPS1 | $ | 3.24 | $ | 2.97 | 9 | % | $ | 6.30 | $ | 5.82 | 8 | % | $12.85 - $13.15 (Prior: $12.70 - $13.05) | ||||||||||||
| Cash from operations | $ | 754 | $ | 414 | 82 | % | $ | 650 | $ | 764 | (15 | %) | |||||||||||||
| Adjusted free cash flow1 | $ | 714 | $ | 342 | 109 | % | $ | 558 | $ | 657 | (15 | %) | ~2.2B | ||||||||||||
| *When we provide our expectation for adjusted segment operating margin, effective tax rate on non-GAAP income, non-GAAP EPS and adjusted free cash flow on a forward-looking basis, a reconciliation of these non-GAAP financial measures to the corresponding GAAP measures is not available without unreasonable effort due to the unavailability of items for exclusion from the GAAP measure. We are unable to address the probable significance of this information, the variability of which may have a significant impact on future GAAP results. See Non-GAAP Financial Measures on page 7 for more information. | |||||||||||||||||||||||||
