Recent days have seen companies issue their 1st Quarter 2021 financial reports and projections and the days ahead will see more. Following is a running summary of key defense and aerospace company reporting.

Airbus (SE)

Airbus held its Q1 2021 Results Release Conference Call for analysts on Thursday, 29 April and reported the following:

● 125 commercial aircraft delivered in a market environment that remains uncertain
● Strong focus on cost and cash containment; progress on restructuring
● Revenues € 10.5 billion; EBIT Adjusted € 0.7 billion
● EBIT (reported) € 0.5 billion; EPS (reported) € 0.46
● Free cash flow before M&A and customer financing € 1.2 billion, including positive phasing impact
● Net cash position at € 5.6 billion
● The guidance issued in February 2021 remains unchanged

Said Airbus Chief Executive Officer Guillaume Faury: “The good Q1 results mainly reflect our commercial aircraft delivery performance, cost and cash containment, progress with the restructuring plan as well as positive contributions from our helicopter and defence and space activities,” “The first quarter shows that the crisis is not yet over for our industry, and that the market remains uncertain. We are investing in innovation and in the transformation of our Company to
deliver on our long-term ambitions across the portfolio.”

Boeing (BA)

Boeing reported its Q1 results on 28 April, with revenues off 10%.

  • Continued progress on safe return to service of 737 MAX; resumed 787 deliveries in late March
  • Revenue of $15.2 billion, GAAP loss per share of ($0.92) and core (non-GAAP)* loss per share of ($1.53)
  • Operating cash flow of ($3.4) billion; cash and marketable securities of $21.9 billion
  • Total backlog grew to $364 billion; Commercial Airplanes added 76 net orders

Said Boeing President and Chief Executive Officer Dave Calhoun: “I am proud of the progress our global team made across our business in the first quarter as we continued to transform our enterprise, strengthen our safety processes, and sustain critical investments for our future. While the global pandemic continues to challenge the overall market environment, we view 2021 as a key inflection point for our industry as vaccine distribution accelerates and we work together across government and industry to help enable a robust recovery. Our balanced commercial, defense, space and services portfolio continues to provide critical stability for our business – and we remain focused on safety, quality and integrity as we deliver on our customer commitments.”


Curtiss-Wright Corporation (NYSE: CW) reported is Q1 financial results on 6 May. Said President & CEO Lynn M. Bamford: “We delivered a strong start to the year, which has positioned us to increase our full-year Adjusted guidance for sales, operating income, operating margin and diluted EPS,” said of Curtiss-Wright Corporation. “First quarter Adjusted diluted EPS of $1.51 exceeded expectations, as we delivered strong organic defense market sales and improved profitability in the Defense Electronics and Naval & Power segments. In addition, our solid financial performance reflects the continued execution of our cost containment efforts and savings generated by our restructuring actions, as well as investments in strategic research and development projects to drive long-term organic growth.”

  • Reported results include sales of $597 million, operating income of $85 million, operating margin of 14.2% and diluted earnings per share (EPS) of $1.45;
  • Adjusted diluted EPS of $1.51, up 18%;
  • Adjusted net sales of $590 million, up 2%, led by strong 8% growth in our Aerospace & Defense markets;
  • Adjusted operating income of $89 million, up 15%;
  • Adjusted operating margin of 15.0%, up 160 basis points, principally reflecting savings generated by our prior year restructuring initiatives;
  • New orders of $571 million, up 3%, led by a strong 1.2x book to bill in our commercial markets;
  • Reported free cash flow (FCF) up 83%; Adjusted FCF up 34%; and
  • Share repurchases of approximately $12 million.
  • The Press Release is here.
  • The Presentation is here.
  • The Webcast is here.

General Dynamics (GD)

GD on 28 April reported first-quarter 2021 results:

  • Net earnings of $708 million on revenue of $9.4 billion.
  • Diluted earnings per share (EPS) were $2.48.
  • Revenue grew year-over-year by 7.3% company-wide, with growth in all four segments and growth exceeding 10% in the Aerospace and Marine Systems segments.
  • Company-wide operating margin for the quarter was 10%.
  • Orders remained strong, with backlog up 4.5% from the year-ago quarter to a record $89.6 billion.

Said Phebe N. Novakovic, GD Chairman and CEO: “Continued recovery from the pandemic coupled with our focus on operating performance yielded a strong quarter, with year-over-year earnings growth driven by increased revenue across all of our four business segments,” “Our improved cash outlook enabled us to continue investing in future growth while returning capital to shareholders.”

Huntington Ingalls Industries (HII)

HII released its Q1 results on 6 May. Said Mike Petters, HII’s President and CEO: “We are pleased with first quarter results that demonstrate another quarter of consistent program execution. We are well positioned to drive long-term value creation, with an unprecedented level of backlog in-hand and a workforce that has become more capable while working through the challenges posed by COVID-19.”

  • Revenues were $2.3 billion in the quarter
  • Operating margin was 6.5% and segment operating margin was 8.4%
  • Diluted earnings per share was $3.68
  • Pension adjusted diluted earnings per share was $3.56
  • Achieved record backlog of $48.8 billion
  • The press release is here.
  • The briefing is here.
  • The webcast is here.

L3Harris (LHX)

L3Harris released its Q1 results on 30 April. Said William M. Brown, Chair and Chief Executive Officer: “Our first quarter results demonstrate continued strong execution by the L3Harris team in spite of the pandemic, which provides us confidence in delivering on our increased guidance for the year. Our ability to perform exceptionally, along with the differentiated capabilities highlighted at our Investor Briefing, position us to continue creating value for all stakeholders over the long term.”

  • Revenue $4.6 billion, down 1.3% versus prior year, up 1.8% on an organic basis
  • Funded book-to-bill 2 of 1.10
  • Net income margin of 10.2%; adjusted earnings before interest and taxes (EBIT) margin3 of 18.9%
  • GAAP earnings per share from continuing operations (EPS) of $2.25, up 127%
  • Non-GAAP EPS3 of $3.18, up 14%
  • Operating cash flow of $661 million; adjusted free cash flow (FCF)3 of $630 million
  • Returned $909 million to shareholders through $700 million in share repurchases and $209 million in dividends
  • Raised 2021 non-GAAP EPS guidance to $12.70 – $13.00

Leidos Holdings (LDOS)

Leidos reported on its Q1 performance on 4 May, with Roger Krone, Leidos Chairman and Chief Executive Officer, noting: “First quarter results reflect the perseverance, focus and tremendous execution of our employees and business partners. New quarterly record levels of revenue, non-GAAP EPS and backlog were achieved, and significant organic growth was delivered across all business segments. This early momentum favorably positions Leidos to deliver on our full year financial commitments.”

  • Revenues: $3.32 billion, year-over-year growth of 14.7%
  • Diluted Earnings per Share: $1.42; Non-GAAP Diluted Earnings per Share: $1.73
  • Net Bookings: $3.8 billion (book-to-bill ratio of 1.2)
  • Cash Flows from Operations: $239 million
  • The press release is here.
  • The earnings call presentation is here.
  • The webcast is here.
  • Q1 Earning Summary – at a Glance is here.
  • Supplementary financials are here.

Lockheed Martin (LMT)

Lockheed Martin reported its Q1 results, which it termed “a strong start to 2021” on 20 April.

  • Net sales of $16.3 billion a year-to-year increase over 2020.
  • Net earnings of $1.8 billion, or $6.56 per share, up from $6.08 last year.
  • Generated cash from operations of $1.7 billion
  • Maintained backlog of approximately $147 billion
  • $1B Increase in 3 Year Operating Cash Flow Outlook
  • Increases 2021 financial outlook

Northrop Grumman (NOC)  

Northrop Grumman released its Q1 results on 29 April. Said Kathy Warden, chairman, chief executive officer and president: “First quarter results are a strong start to the year and a continuation of the positive performance we delivered in 2020. Our team booked competitive new awards and generated higher sales, earnings and cash. These strong operational results, coupled with portfolio shaping, enabled value-creating capital deployment for our shareholders. Based on our strong first quarter results and solid outlook for the year, we are raising 2021 sales and EPS guidance.”

  • Sales Increase 6 Percent to $9.2 Billion
  • EPS Increase to $13.43
  • Excluding $1.1 Billion IT Services Sale Benefit, Transaction-adjusted EPS1 Increase 28 Percent to $6.57
  • Net Awards Total $8.9 Billion
  • During the Quarter the Company Entered into a $2.0 Billion Accelerated Share Repurchase Agreement and Retired $2.2 Billion of Debt
  • Company Raises 2021 Sales Guidance to $35.3 to $35.7 billion and Transaction-adjusted EPS1 Guidance to $24.00 to $24.50

Raytheon (RTX)

Raytheon Technologies released its Q1 results on 27 April, with company CEO Greg Hayes noting that the company was reporting “sales, adjusted EPS and free cash flow that were above our initial expectations, giving us the confidence to increase the low end of our sales and adjusted EPS outlook.” The reporting noted that the company achieved:

  • Sales of $15.3 billion
  • GAAP EPS from continuing operations of $0.51, which included $0.39 of net significant and/or non-recurring charges and acquisition accounting adjustments
  • Adjusted EPS of $0.90
  • Operating cash flow from continuing operations of $723 million; Free cash flow of $336 million
  • Achieved approximately $200 million of RTX synergies
  • Resumed share repurchase program, and repurchased $375 million of shares
  • Closed on the divestiture of Forcepoint for gross proceeds of $1.1 billion

Textron (TXT)

Textron released its Q1 results on 29 April. Said Textron Chairman and CEO Scott C. Donnelly: “Revenues were higher in the quarter primarily driven by higher volumes at Industrial and Bell, with solid margin performance across all our segments. We also saw improving commercial aircraft demand at both Aviation and Bell in the quarter.”

  • EPS of $0.75; adjusted EPS of $0.70
  • Operating margin of 8.9%, up from 5.6% a year ago
  • Revenue up $102 million, or 3.7% from prior year
  • Net cash from operating activities of $107 million, up $500 million from prior year
  • Aviation backlog $2.1 billion, up $452 million from year-end 2020
  • Full-year adjusted EPS outlook raised by $0.10