Good morning. Welcome to the Kratos Defense & Security Solutions Inc Annual Meeting of Stockholders. I would now like to introduce the first presenter, Kratos's President and CEO, Eric DeMarco. Thank you. Good morning, welcome to the annual meeting of the stockholders of Kratos Defense & Security Solutions. I'm Eric DeMarco, President and Chief Executive Officer and one of the directors of the company. It's my pleasure to welcome all of you to our annual meeting. It's now 9:00 A.M. Pacific Time. In accordance with the notice of the annual meeting, I hereby call this annual meeting of stockholders of Kratos Defense & Security Solutions to order. The rules of conduct and agenda for the annual meeting were made available to you through the virtual meeting portal. It is our intention to conduct this annual meeting in accordance with those rules of conduct and the agenda. Please note that there will be an opportunity for stockholders who have logged into the meeting with a control number to ask questions after the formal business of the meeting has been conducted and after I've completed my business update on the company. In order for a question to be addressed, stockholders must identify themselves and their institutional affiliation within the question box in the virtual meeting portal. All questions submitted should be relevant to the matters properly addressed during this meeting. Any question submitted that is not relevant or appropriate will not be answered. The introductions of our directors. Joining me today from our board of directors are Scott Anderson. Mr. Anderson has been one of our directors since 1997 and serves as Chairman of our Audit Committee and is a member of our Nominating and Corporate Governance Committee. Mr. Anderson is the principal of Cedar Growth Partners LLC, an investment and consulting advisory partnership. Retired Colonel Bradley Boyd. Colonel Boyd has been one of our directors since 2023 and is a member of our audit committee. Colonel Boyd served in the United States military for over 30 years, retiring with the rank of colonel. He is a founder and senior advisor for the future decision-making at the Center for International Security and Cooperation at Stanford University. Retired Brigadier General Bobbi Doorenbos. General Doorenbos has been one of our directors since 2024 and is a member of our compensation committee. The general served in the United States military for nearly 25 years. She is currently a senior advisor with The Roosevelt Group, and she is a commercial airline pilot. William Hoglund. Mr. Hoglund has been one of our directors since 2001. He is the Chairman of the Board and is a member of our Nominating and Corporate Governance and Compensation Committees. Mr. Hoglund is the founder of SAFE Boats International LLC, a leading manufacturer of vessels for military, law enforcement, and commercial purposes. Scot Jarvis. Mr. Jarvis has been one of our directors since 1997. He serves as Chairman of our Compensation Committee and is also a member of our Audit and Nominating and Corporate Governance Committees. Mr. Jarvis co-founded Cedar Growth Partners LLC, an investment and consulting advisory partnership. David King. Mr. King has been one of our directors since March 2026 and is a member of our Audit Committee. Mr. King is chairman of Applied Aerospace & Defense, a provider of solutions for federal government customers, and he previously served as the chief executive officer and a board member of Dynetics and then continued as group president at Leidos Holdings Inc after Leidos' acquisition of Dynetics. Dean Lund. Ms. Lund joined the Kratos board in May of 2021 and has served as Kratos' Executive Vice President and Chief Financial Officer since 2004. Amy Zegart. Ms. Zegart, who joined our board in 2014, is the chairman of our nominating and corporate governance committee. Ms. Zegart is the Morris Arnold and Nona Jean Cox Senior Fellow at the Hoover Institution and senior fellow at Stanford for Human-Centered Artificial Intelligence Institute and the Freeman Spogli Institute for International Studies. Also joining me today is Marie Mendoza. Marie is our Senior Vice President, General Counsel, and Secretary. For the introduction of Inspector of Elections. Marie Mendoza has been selected by our board of directors to serve as Inspector of Elections for this annual meeting. Ms. Mendoza has taken and subscribed to the customary oath of office and to execute her duties with strict impartiality. Her oath will be filed with the records of this annual meeting. Her function is to decide upon the qualification of voters, accept their votes, and when balloting on all matters is completed, to tally the final votes. The mailing of notice and confirmation of shares present. Per the bylaws of the company and Delaware law, notices of internet availability of proxy materials were mailed on or about April 2nd, 2026, to all stockholders of record as of March 20, 2026. A list of stockholders entitled to vote at this annual meeting has been made available at the company's principal office for the past 10 days and is available through the virtual stockholder meeting website for examination by any stockholder that is logged into the system with a valid control number. All documents concerning the annual meeting and notice of the annual meeting will be filed with the records of the annual meeting. The tabulation of the proxies was performed by Broadridge Financial Solutions Inc. The count of shares at the close of business on May 11, 2026 indicated that no less than 163,944,543 shares of the company's voting capital stock are present by proxy. These shares represent no less than 87.5% of the outstanding voting stock of the company. Therefore, I hereby declare that a quorum is present at this annual meeting. On behalf of the Board of Directors of the company, I would like to express my appreciation to all stockholders who returned their proxies. The opening of the polls. Time is 9:07 A.M. Pacific Time on May 12, 2026, and the polls are now open for voting on all matters to be presented. The polls will be closed to voting after we go through the matters to be voted on. The matters for stockholder consideration. There are 6 proposals to be considered by the stockholders at this meeting. The first item of formal business to be acted upon by the stockholders is the election of 9 directors to serve until the 2027 annual meeting of the stockholders or until their successors are duly elected. Scott Anderson, Bradley Boyd, Bobbi Doorenbos, Eric DeMarco, William Hoglund, Scot Jarvis, David King, Deanna Lund, and Amy Zegart were all nominated for election by our Nominating and Corporate Governance Committee. The nominees were duly nominated pursuant to the bylaws of the company. The company has not received notice of any other nominations by a stockholder as required under the company's bylaws. Therefore, the nominations are closed. The board of directors recommends a vote for each nominee. The second item of formal business to be acted upon by the stockholders today is the ratification of Deloitte & Touche LLP as our independent registered public accounting firm for the fiscal year ending December 27, 2026. Deloitte & Touche LLP has been one of our independent registered public accounting firms since July 2013. The board of directors, acting on the recommendation of our audit committee, has unanimously approved the appointment of Deloitte & Touche for our fiscal year ending December 31st, 2026, and recommends a vote for approval of this proposal. The third item of formal business to be acted upon by the stockholders today is the approval to amend the company's certificate of incorporation to increase the number of authorized shares of common stock from 195 million to 245 million as presented in the proxy statement. The board of directors recommends a vote for approval of this proposal. The fourth item of formal business to be acted upon by the stockholders today is the approval to amend the company's certificate of incorporation to provide for officer exculpation as presented in the proxy statement. The board of directors recommends a vote for approval of this proposal. The fifth item of formal business to be acted upon by the stockholders today is the approval of an amendment and restatement of the company's 2023 equity incentive plan to increase the number of shares of common stock issuable under such plan by 6.9 million shares as presented in the proxy statement. The board of directors recommends a vote for approval of this proposal. The sixth item of formal business to be acted upon by the stockholders today is the advisory vote to approve the compensation of our named executive officers as presented in the proxy statement. The board of directors, acting on the recommendation of our compensation committee, recommends a vote for approval of this proposal. Regarding online voting. Only stockholders who own stock as of our March 20, 2026 record date have the right to vote at this annual meeting. Each share of common stock is entitled to one vote. At this time, any stockholders who are logged into the virtual meeting web portal with a valid control number and who have not yet voted or who wish to change their vote may do so now by clicking on the voting button on the web portal and following the instructions there. Stockholders who have sent in proxies or voted via telephone or internet and do not want to change their vote do not need to take any further action. The time is now 9:11 A.M. Pacific Time, and the polls are now closed for voting. Ms. Mendoza will now report on the preliminary voting results. Ms. Marie? Thank you. The proposal to elect Scott Anderson, Bradley Boyd, Bobbi Doorenbos, Eric DeMarco, William Hoglund, Scot Jarvis, David King, Deanna Lund, and Amy Zegart as directors of the company is carried. The board's selection of Deloitte & Touche as the company's independent registered public accounting firm for the fiscal year ending December 27th, 2026 is ratified. The proposal to approve an amendment of the company's certificate of incorporation to increase the number of authorized shares of common stock from 195 million to 245 million is carried. The proposal to approve an amendment of the company's certificate of incorporation to provide for officer exculpation is carried. The proposal to approve an amendment and restatement of the company's 2023 equity incentive plan to increase the number of shares of common stock issuable under the plan by 6,900,000 shares is carried. The proposal to approve on an advisory basis the compensation of our named executive officers is carried. A full tally of the votes will be published in a current report on Form 8-K, which will be filed with the Securities and Exchange Commission within four business days from this meeting. Thank you, Ms. Marie. This concludes the formal business of our annual meeting. On behalf of all the officers, directors, and employees of Kratos Defense & Security Solutions, I would like to express my sincere appreciation to the stockholders who attended the annual meeting, as well as those who submitted their proxies but were not able to attend the virtual meeting. This annual meeting is hereby adjourned. Ladies and gentlemen, I would now like to give you an overview of our business and an update since our last annual meeting. We'll start out with slide five. Importantly, as you'll note, over the last several years, Kratos' strategic objective has remained unchanged, our strategy has remained unchanged, and our mission statement has remained unchanged. Simply stated, Kratos is going to be the leading defense technology hardware and software company addressing the national security and defense in the related global markets. At Kratos, we have several pillars of our strategy. I'm not going to go through all of these. We refer to them as Kratosisms. Some of the most important ones in today's environment is affordability as a technology. As you know, everything that we do has affordability in the mass production stage focused on. Better is the enemy of good enough. I'm going to refer to that quite a bit today, especially as it relates to the Secretary's recent Arsenal of Freedom speech and for contractors and companies like Kratos to deliver 85% of the solution now instead of a maybe 100% solution someday in the future. Probably the most important on this slide is making significant investments in the United States' defense industrial base. This is the absolute priority of this administration of the Department of War, and it's a priority of our company. Some of the other pillars of Kratos' strategy that I'll reference here is we look to be the customer's easy button and our partner's easy button. We solve very difficult challenges, but we try to be easy with the customers. No crap, no games. Think straight, talk straight, and get it done. Also very importantly to the President, this administration, is we don't buy back stock and we don't pay dividends. We invest in the defense industrial base, as I referenced before. Probably equally importantly, as you know, a CEO has three primary jobs, set the strategy of the company, hire the people to execute the strategy, and set the compensation structure to incentivize them to execute it, all in alignment with the shareholders, which is what we're doing here and which has been reflected in today's annual meeting and the vote on the compensation of the executive team. Probably one of our most important differentiators is Kratos, we do products, not PowerPoints. This has become more and more important to our customers and our partners as we're going to go through today in some detail. I introduced you again to our board of directors a few minutes ago. There is no question in my mind that Kratos' directors are both a strategic and competitive differentiator. I mentioned think straight, talk straight a minute ago. Our directors, they think straight, talk straight, they make business decisions, and then we move out and we get it done. That is clearly showing through in the results of the company and the perception of the company to our partners and our customers. On the executive team, I will not go through the executive team in detail here. I've introduced you to many of them or most of them previously. The point I'd like to emphasize here. The majority of us have been together a long time. Stability, experience, and trust is invaluable. It's another key differentiator of why the company is being so successful. The only reason I'm putting this slide in on our global footprint is for a reference for the shareholders to see how the company is addressing the global national security markets. As I'm going to go into in a minute, the global national security market right now is about $2.7 trillion. Obviously, the biggest part of that is in the United States, but Kratos is positioned globally to take advantage of this large and rapidly growing market for national security. As I think you're aware, there's a generational recapitalization of strategic weapon systems in the U.S. industrial base occurring right now. This is being reflected in the United States. We're coming off a 2026 spend of over $1 trillion for national security. The President and the Department have suggested a $1.5 trillion spend for 2027. NATO and the Pacific allies are increasing their spend up to 5% of GDP. A very important data point, back in 1993, Les Aspin had the infamous defense industrial base last supper, where we consolidated down from 51 companies down to five today. Kratos is one of the very few companies positioned with the past performance qualifications to address this total addressable market and this rebuild that's happening today. Another data point I want to make on this slide is there is a significant supply-demand imbalance relative to demand for companies to produce military-grade hardware and software and the supply of those companies. This is why these venture-backed new defense technology companies and the private equity-backed companies are entering the market space. These guys are very, very smart. They've done their gap analysis. They see the gap, and they're putting their money in investments to address it. Sticking on the total addressable market, as I mentioned a minute ago, the national security spend globally is about $2.7 trillion. You can see the investments that's coming in from the new defense guys on this slide. Venture capital-related deals hit about $49 billion, just under 50, up from $27 billion the year before. Equity funding in defense tech has more than doubled to just under $18 billion. At the bottom, I want to reference again here, building military-grade hardware and software that works every time is hard. This is a key Kratos differentiator to our customers and partners, and this is one of the reasons why we're succeeding is because the team is so good at this. In addition to the rebuild, there's significant acquisition system reform going on right now in the U.S., driven top down by the President and the Department of War. The next few slides, I have some snippets here. I referenced a minute ago the November 2025 Arsenal of Freedom speech by the Secretary. Speed, affordability, and quantities. This is one of the key takeaways from this slide. This is what the Department is looking for the industrial base to do. It's not just the Department and the President. There is significant bipartisan congressional support for the rebuild in the House, the SPEED Act in the Senate, Senator Wicker's FORGED Act, all of which are helping move forward the strategy here of the Department on rebuilding the industrial base of the U.S. I mentioned a few minutes ago, better is the enemy of good enough. That has been a Kratosisim for a long, long time. What we are doing here is incredibly consistent with the Secretary, what the Secretary has said repeatedly. He wants an 85% in, 85% solution in the hands of the warfighter now, not a potential 100% solution someday in the future. Kratos has been following this methodology for years, almost a decade now. I am very comfortable we are completely aligned with the Department and what the Secretary wants in this number one priority. Additionally, internationally, very importantly, last year since our last meeting, the Secretary of State, Secretary Rubio, came out on MTCR, which I'm going to talk about in a minute, which ties into these seven-year framework agreements that I want to talk about on slide 17. The stabilization of demand, the demand signals. The Department has come out now with seven-year framework agreements with many of the large traditional primes. Kratos is participating in this. We're participating in it with our partners, the primes, the missile area, the air defense area, the propulsion system area, and many other areas. The demand signal is there, and the Department is actually taking action to give the demand signal so the industry can make the investments to rebuild the base. I mentioned MTCR. This ties into those seven-year framework agreements on exporting weapon systems. This is the Missile Technology Control Regime. This has to do with missiles and drones, specifically Kratos' jet drones. These are Class 1 drones like our Valkyrie and our Air Wolf and our MQM-178 Firejet were previously under MTCR. For the U.S. to export these Class 1 systems, there was a strong presumption of denial that your request would be denied. The rule has changed now. There's a presumption of approval. These types of systems are going to be treated similar to manned fighter aircraft. Think like an F-35 being exported internationally, which it is all over the world. This has been a significant benefit for the industry, for the U.S., and for Kratos. This is one of the reasons since our last annual meeting with you, our international business, in particular in the drone area, has taken some great strides forward. Straight from the top and the President, no dividends, no stock buybacks by defense companies. The President wants the companies to invest in the defense industrial base. As you're going to see going forward in this briefing, Kratos is standing up, and we're doing our part here to help rebuild it with significant investments in the base. In addition to that, since our last meeting, the Department is now taking an active role in investing in certain contractors in the U.S. One of the highest publicized one is the investment in L3 related to the Aerojet Rocketdyne solid rocket motor and energetics business, which recently filed for an IPO with the Department taking an important investment position to help capitalize the business further to build out additional capacity for solid rocket motors and energetics. We're seeing more and more of this across the landscape. I expect to continue to see it going forward across the entire industrial base. With that as the backdrop, this is where Kratos is the industry leader. We've been first to market. Being first to market is a critical strategic differentiator for us. It's a competitive advantage. This is how we win. I'm not gonna go through each of these in detail. You're familiar with these systems. I'm gonna touch on some of the advancements we've made since our last meeting a year ago in each of these areas to bring them to the field very rapidly. As I go through those, as you know, critical to our strategy is our partnerships. This is just a representative example of certain of Kratos' key partnerships. I'll call out some of these who have been very, very valuable to us over the past year. Northrop Grumman and Lockheed Martin are both incredible partners of Kratos. SES, the largest satellite operator in the world. They are an incredible technology company. They are a very strong partner of Kratos'. General Electric. General Electric Aerospace, and our partnership with them, all small engines. Of course, what we're doing with RAFAEL with Prometheus. The next few slides are just updates on many of the initiatives that we've been successful on since our last briefing with you. We've had a lot of winning at the company, and it's as a result of the team that we have. Right off the bat, I wanna talk about our program, partnered with Northrop Grumman for MUX TACAIR with the United States Marine Corps for the CCA program. This has now been awarded to us. When I say us and Northrop Grumman. This is moving forward. I'm limited on what I can go into details on here now for security reasons and other reasons. I encourage you to take a look at some of the Marine Corps statements at their industry day and their show day last week, specifically related to Project Eagle. You can see how this is accelerating. This is going to be, I believe, one of our most important initiatives in the company for the next few years. On MTCR and the Missile Technology Control Regime and the change there from Secretary of State Rubio, our partnership with Airbus, initially targeting Germany. We've now delivered two Valkyries. They're in Europe. They are preparing to fly. As a result of moving out here with Airbus, we have been approached by many other international countries and their ministries of defense relative to the Valkyrie and certain of our other CCA drones, again, tying into the MTCR change. Also very importantly, Kratos first to market with actual flying combat aircraft, and we are the only company that is in high rate production, multiple production lines on CCAs today. That's all occurred since our last meeting with you. Internationally, Taiwan and the Mighty Hornet. This is a derivative of our tactical Firejet drone. It's smaller. As you know, we are moving out here. We're gonna be delivering aircraft soon. As the Taiwanese have publicly stated, we're looking for potential production go-ahead later this year or in early 2027. Our hypersonic franchise. At our last meeting with you, I went in detail how we had just recently received a contract, the MACH-TB, the hypersonic test bed program. This has been a linchpin across our hypersonic franchise relative to many initiatives we've been successful on since our last briefing with you and many of the capital investments we're making. We've now finished our hypersonic integration facility and manufacturing facility in Princess Anne, Maryland. It's up and running. This is one of the key reasons why our hypersonic franchise going from 2025 to 2026 revenue is going from approximately $200 million to $400 million this year. We have another hypersonic integration facility. This one is in Indiana. It's near Crane. This is a payload facility where we're gonna be integrating the payloads with the solid rocket motors and the energetics. This one will be coming on later this year. This will be a key element of Kratos' hypersonic franchise revenue going from $400 million in 2026 to $700 million next year. You can see we're building the capacity for the programs we have to deliver to the war fighter. Prometheus. This is with our incredible partner, RAFAEL, the 51-49 partnership, RAFAEL Kratos. We've broken ground. This will be focused on solid rocket motors and energetics for tactical systems abroad and here in the United States. We are focused on being the true merchant supplier, independent merchant supplier, and we will be going to certain of the traditional large primes to fill a significant void that's there today. We were also successful on our Anaconda initiative. This has to do with anechoic chambers, initially for the SPY-1 radars, but this is growing very rapidly, and we expect it to expand to additional radars over the next 12 months that I'll be briefing you on next year. This is another facility. Kratos is standing up in conjunction with the Department to address the refurbishment and upgrade initially of SPY-1 radars and then on to additional radar arrays. I mentioned Helios the last time we were together. We have been successful on Helios. This facility we will be breaking ground on very soon. We made an announcement yesterday or two days ago that this is also going to be in Indiana. This is hypersonic system testing related with an arc jet and also laser facility capabilities. We've won the award. We're moving out on this. We expect this to be a significant element of our future growth once it's online, beginning in the second half of next year. Our partnership with GE. This is focused on turbofans, small engines for cruise missiles and drones and CCAs. You can see here, GE recently announced that we were selected. We, us and our partner, were selected for one of the CCA engine initiatives by the department. Since we last got together, we have now successfully moved into our new small turbojet engine manufacturing facility in Michigan. Our current capacity is 10,000 engines a year with scalability up to 25,000 engines a year. As I mentioned on our earnings call last week, we are getting ready to pull the trigger on turning on the supply chain for approximately a 3,000 engine build next year in delivery, and then a potential 5,000-6,000 engine build for 2028. Small engines related to drones, cruise missiles, and loitering munitions are taking off. As you know, Kratos is a merchant supplier. We made the decision to try to be independent and be designed in on virtually all of the system providers, and we're being very successful at that. Auburn Hills, I just went through this in detail. This facility is going to be coming online very, very soon as well. Okay. Israel. As you know, we're headquartered in Israel with our microwave electronic business. We are designed in and we support the big three in Israel, RAFAEL, Elbit, and Israel Aerospace Industries. We are designed in on virtually every one of their radars and missile systems. We have opened a new facility there to meet demand, and we've also expanded one of our existing facilities. I don't need to go into details on what's going on there, but the demand signal from the Israel Ministry of Defense and our partners there is very strong, and we expect that to continue going forward. One of our crown jewels in Kratos is our space business. We were first to market with virtualized software for command and control, and telemetry tracking, and control of the space segment. As a result of the investments that we have made, we are being very successful on some very large awards, including Golden Dome related. Here's a very recent award we just got a couple months ago. It's just under $450 million. This is for missile tracking ground systems infrastructure that Kratos will be putting in. This is related not only to ICBMs, but cruise missiles and also hypersonic systems. We recently closed an acquisition, Israeli-based Orbit Technologies in the satellite communications area. Importantly, same customers, RAFAEL, Elbit, Israel Aerospace Industries, Israel Ministry of Defense. Similar technology to what we're working on. As you know, these are primarily parabolic antennas right now. One of our one plus one equal four initiatives is we're going to be going to AESAs and phased arrays, which our microwave electronics business builds already. We're going to be bringing additional capability and technology to an existing customer base and an established platform base. We also recently closed an acquisition, Nomad GCS. Simply stated, this company makes mobile systems for counter-UAS, directed energy systems, and command, control, and communication systems. Quickly, financially, we ended 2025 exceeding or achieving all of our financial matrices across the board. I'm not going to go into details on here. What I will point out here, and also on the next slide, is the book-to-bill ratio. We're routinely over 1.2, 1.3 to one book to bill, which ties into our forecasted growth rate going forward over the next two years of 15%-25% organic growth. We just reported our first quarter of 2026 results. Our book-to-bill ratio was 1.6 to one. This is coming off record revenue for the company. On top of that, book-to-bill ratio of 1.6, the opportunity pipeline, where the bookings come from, went from $12 billion to $14 billion. Clearly, the business is accelerating, and that's represented in our last two quarters' financial results. On 41, you can see the numbers here on the trajectory. It's very, very good, of course. The takeaway here is Kratos' balanced business model. We're making significant investments right now to grow the business and be profitable. We have an eye on in the future when the investment build ends, the cash flow from the production contracts will kick in, and we become a free cash flow positive generating company. Some of the highlights from 2025. Again, I'm going to refer you just to focus on backlog, bookings, and opportunity pipeline. This ties into the generational recapitalization of the industrial base. Also the growth in the defense budgets. As I mentioned before, we're looking at $1.5 trillion for 2027. Execution highlights, 2026. The takeaway from here, profitability and the margin rate. We did $38.7 million of EBITDA. We're looking at a 100 basis point increase in EBITDA margins, 26 over 25. We're looking for an additional 100 basis point increase in EBITDA, 27 over 26, and we're off to a great start with that in Q1 of this year. Referring back to the map and the global national security company that we have, you can see where we are here commercially, internationally, et cetera. A lot of our commercial business is in the satellite communication area. Without going into too many details, as you know, many of those buses on those quote-unquote, "commercial satellites" have national security payloads and capabilities for that sovereign nation. I'll leave it at that. Good. On to 45. Our most valuable asset remains our employees. I thank every one of you and your families, especially those of you that have served in the military. Thank you for your service, and thank you what you're doing for our company and our responsibilities to the country, the war fighter, the employees, and also the investors. We are focused on our stakeholders. When I say stakeholders instead of shareholders, there it is. Country, war fighter, employee, and investor. Concluding and finishing it up, our capabilities and what we do, our scarcity value to the department and our partners is clear, and it's becoming more and more apparent. I mentioned up front building military-grade hardware and software that must work every time isn't easy, and that's a critical differentiator of Kratos. We're in it for all of our stakeholders. Again, I wanna thank the employees and our shareholders for giving us the capital to execute the strategy. With that, I'll turn it over to the moderator and see if we have any online questions. For those watching and are logged in as a stockholder with a control number, you can ask a question by submitting it in the Q&A section on your web console. Please feel free to submit questions now. Okay. No questions. I appreciate it. Thank you for joining us for the meeting very much. Thank you. The annual meeting of stockholders has now come to an end. Thank you for attending. You may now leave the virtual meeting.