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THIRD QUARTER 2026 CONFERENCE CALL KATHY WARDEN Chair, Chief Executive Officer and President JOHN GREENE Corporate Vice President and Chief Financial Officer OCTOBER 20, 2026 Photo: Sentinel, vertically assembled
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Third Quarter 2026 Conference Call 2 Forward-Looking Statements This presentation and the information we are incorporating by reference, and statements to be made on the earnings conference call, contain or may contain statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “will,” “expect,” “anticipate,” “intend,” “may,” “could,” “should,” “plan,” “strategy,” “project,” “forecast,” “achieve,” “believe,” “estimate,” “guidance,” “outlook,” “trends,” “goals,” “confident,” “targeting,” “on track” and similar expressions generally identify these forward-looking statements. Forward-looking statements include, among other things, statements relating to our future financial condition, results of operations and/or cash flows, including financial guidance, outlook, trends, expectations and other forward-looking statements for 2026 and beyond. Forward-looking statements are based upon assumptions, expectations, plans and projections that we believe to be reasonable when made, but which may change over time. These statements are not guarantees of future performance and inherently involve a wide range of risks and uncertainties that are difficult to predict. Specific risks that could cause actual results to differ materially from those expressed or implied in these forward-looking statements include, but are not limited to, those identified and discussed more fully in the section entitled “Risk Factors” in the Form 10-K for the year ended December 31, 2025, and from time to time in our other filings with the Securities and Exchange Commission (SEC). They include: Industry and Economic Risks • our dependence on the U.S. government for a substantial portion of our business • significant delays or reductions in appropriations and/or for our programs, and U.S. government funding and program support more broadly, including as a result of a prolonged continuing resolution and/or government shutdown, and/or related to the global security environment or other global events • significant delays or reductions in payments as a result of or related to a breach of the debt ceiling or a prolonged government shutdown • the use of estimates when accounting for our contracts and the effect of contract cost growth and our efforts to recover or offset such costs and/or changes in estimated contract costs and revenues, including as a result of inflationary pressures, labor shortages, supply chain challenges, changes in trade policies and/or other macroeconomic factors, and risks related to management’s judgments and assumptions in estimating and/or projecting contract revenue and performance which may be inaccurate • increased competition within our markets and bid protests • continued pressures from macroeconomic trends, including on costs, schedules, performance and ability to meet expectations Legal and Regulatory Risks • investigations, claims, disputes, enforcement actions, litigation (including criminal, civil and administrative) and/or other legal proceedings • changes in procurement and other laws, SEC, U.S. Department of War (DoW) and other rules and regulations, including changes through executive orders, contract terms and practices applicable to our industry, findings by the U.S. government as to our compliance with such requirements, more aggressive enforcement of such requirements and changes in our customers’ business practices and preferences globally • the improper conduct of employees, agents, subcontractors, suppliers, business partners or joint ventures in which we participate, including the impact on our reputation and our ability to do business • environmental matters, unforeseen environmental costs and government and third-party claims • unanticipated changes in our tax provisions or exposure to additional tax liabilities Business and Operational Risks • cyber and other security threats or disruptions faced by us, our customers or our suppliers and other partners, including threats or disruptions from the use of artificial intelligence models capable of exploiting vulnerabilities to conduct or enhance cyber attacks, and changes in related regulations • the performance and viability of our subcontractors and suppliers and the availability and pricing of raw materials, critical minerals and metals, chemicals, parts and components, particularly with inflationary pressures, increased costs, pricing changes, shortages in labor and financial resources, supply chain disruptions, and extended material lead times • our ability to attract and retain a qualified and talented workforce with the necessary security clearances to meet our performance obligations • our exposure to additional risks as a result of our international business, including risks related to global security and strategic alliances, geopolitical and economic factors, misconduct, suppliers, laws and regulations • our ability to innovate, develop new products and technologies, progress and benefit from digital transformation and maintain technologies to meet the needs of our customers • natural disasters, epidemics, pandemics and similar outbreaks and other significant disruptions • products and services we provide related to hazardous and high risk operations, including the production and use of such products, which subject us to various environmental, regulatory, financial, reputational and other risks • our ability appropriately to protect and exploit intellectual property rights General and Other Risk Factors • the adequacy and availability of, and ability to obtain, insurance coverage, customer indemnifications or other liability protections • the future investment performance of plan assets, gains or losses associated with changes in valuation of marketable securities related to our non-qualified benefit plans, changes in actuarial assumptions associated with our pension and other postretirement benefit plans and legislative or other regulatory actions impacting our pension and postretirement benefit obligations • changes in business conditions that could impact business investments and/or recorded goodwill or the value of other long-lived assets, and other potential future liabilities You are urged to consider the limitations on, and risks associated with, forward-looking statements and not unduly rely on the accuracy of forward-looking statements. These forward-looking statements speak only as of the date this presentation is first issued or, in the case of any document incorporated by reference, the date of that document. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. This presentation also contains non-GAAP financial measures. A reconciliation to the nearest GAAP measure and a discussion of the company’s use of these measures are included in this presentation.
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Third Quarter 2026 Conference Call 3 Increasing 2026 financial guidance2 for segment operating income1 and MTM-adjusted EPS1 Completed first vertical stack of full Sentinel Missile, positioning program for first launch in 2027 Continued robust demand generated book-to-bill ratio of ~1.5x and record backlog of $110 billion Added over one million square feet of manufacturing and engineering space in last three months Strategy delivers technology innovation, performance and balanced capital deployment, resulting in durable and profitable growth 1. Non-GAAP financial measure. See Appendix. 2. See the company’s third quarter earnings release for a description of the underlying assumptions, judgments and factors that can affect the company’s ability to achieve guidance or meet expectations. Outstanding operational performance throughout portfolio drives Q3 segment OM rate1 of 12.1% Enterprise Summary
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Third Quarter 2026 Conference Call 4 Third Quarter 2026 Financial Highlights Disciplined portfolio execution driving strong financial performance and continued momentum 1. Non-GAAP financial measure. See Appendix. Three Months Ended September 30 ($M), except per share amounts 2026 2025 ▲ % Backlog 109,597 91,448 20% Sales 11,122 10,423 7% Segment Operating Income1 1,345 1,277 5% Segment Margin Rate1 12.1% 12.3% (20) bps Diluted EPS $7.89 $7.67 3% Capital Expenditures (306) (301) 2% Adjusted Free Cash Flow1 1,810 1,256 44%
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Third Quarter 2026 Conference Call 5 Aeronautics Systems $3,142 $3,575 Q3 2025Q3 2026 14% Sales ($M) $305 $377 9.7% 10.5% Q3 2025Q3 2026 Operating Income ($M) and Margin Rate Diverse portfolio mix of innovative development, mature production and sustainment YFQ-48A Talon Blue Successful first autonomous flight • Sales: higher F-35 volume, B-21 ramp and B-2 sustainment • Margin: disciplined program execution across portfolio
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Third Quarter 2026 Conference Call 6 Defense Systems $2,059 $2,307 Q3 2025Q3 2026 12% $234 $250 11.4% 10.8% Q3 2025Q3 2026 Progressing Sentinel, scaling missile capacity and rapidly delivering new solutions Raid HunterTM Cost-effective C-UAS and missile defense tech • Sales: Sentinel ramp, increased munitions and missile volume • Margin: stable program performance, contract mix Sales ($M) Operating Income ($M) and Margin Rate
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Third Quarter 2026 Conference Call 7 Mission Systems 1. Prior year operating income includes a $68M favorable EAC adjustment in the restricted advanced microelectronics portfolio. $3,093 $3,155 Q3 2025Q3 2026 2% $515 $500 16.7% 15.8% Q3 2025Q3 2026 Sales ($M) Operating Income ($M) and Margin Rate1 Advanced technologies deliver sustained high margin sales growth Mission Systems FORTITUDETM Designing and developing future-ready technology • Sales: increased restricted airborne radar and marine systems volume • Margin: consistently strong program performance driving results
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Third Quarter 2026 Conference Call 8 Space Systems $2,698 $2,749 Q3 2025Q3 2026 2% $298 $312 11.0% 11.3% Q3 2025Q3 2026 Sales ($M) Operating Income ($M) and Margin Rate Differentiated National Security Space technology delivering durable growth Proliferated Warfighter Space Architecture First 21 Tranche 1 satellites delivered • Sales: continued growth on National Security Space programs • Margin: solid program execution supports competitive margin rates
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Third Quarter 2026 Conference Call 9 Q3 2025 $7.67 Segment Performance 0.43 Federal Tax Rate 0.32 Marketable Securities (0.50) Net Pension1 and Other (0.03) Q3 2026 $7.89 $7.89 Q3 2025 Q3 2026 1. Net Pension tax effected on a 21% federal statutory tax rate and a 5.25% blended state tax rate. Note: Year over year benefit from share reduction embedded in individual items, tax effected at 21%. Outstanding segment operating performance across portfolio drives EPS growth Q3 Diluted EPS Bridge $7.67 +3%
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Third Quarter 2026 Conference Call 10 ($M), except per share amounts As of 10/20/2026 Sales $43,750 — $44,250 Segment operating income2 $4,940 — $5,040 Prior: $4,850 — $5,000 MTM-adjusted EPS2 $29.35 — $29.75 Prior: $28.60 — $29.10 Adjusted free cash flow2 $3,100 — $3,500 1. See the company’s third quarter earnings release for a description of the underlying assumptions, judgments and factors that can affect the company’s ability to achieve guidance or meet expectations. 2. Non-GAAP financial measure. See Appendix. 2026 Company Level Guidance1 Building on performance and momentum
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Third Quarter 2026 Conference Call 11 1. See the company’s third quarter earnings release for a description of the underlying assumptions, judgments and factors that can affect the company’s ability to achieve guidance or meet expectations. As of 10/20/2026 Sales ($B) OM Rate % Aeronautics Systems ~$14 High 9% Prior: Mid to High 9% Defense Systems Mid to High $8 ~10% Mission Systems High $12 Mid 15% Prior: ~15% Space Systems ~$11 Low 10% Intersegment Eliminations ~($2.7) Mid 13% Updated segment guidance1 reflects excellent program execution at AS and MS 2026 Segment Guidance1
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Third Quarter 2026 Conference Call 12 2027 Outlook as of 10/20/20261 1. See the company’s third quarter earnings release for a description of the underlying assumptions, judgments and factors that can affect the company’s ability to achieve guidance or meet expectations. 2. Non-GAAP financial measure. See Appendix. 3. 2027 sales growth and segment operating margin rate expansion compared to midpoint of company guidance as of 10/20/2026. Enduring strategy and adaptive approach delivering long-term value •Premier portfolio of leading franchise programs •Sales growth of 5% to 7%3 with further acceleration in 2028 •Segment operating margin rate2 expansion of 10 to 20 basis points3 •Adjusted free cash flow2 range of $3.3 to $3.7 billion
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Third Quarter 2026 Conference Call 13 Building the capacity to deliver scalable solutions with speed and precision Consistent, balanced, and disciplined capital deployment priorities Durable portfolio intentionally and continuously shaped to align with top defense priorities Historic global demand environment translating to record company backlog Disciplined Strategic Execution Leader in advanced technology, developing the world’s most important capabilities
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14Third Quarter 2026 Conference Call Appendix
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Third Quarter 2026 Conference Call 15 ($M) As of 10/20/2026 Total Net FAS/CAS pension adjustment2 ~$700 Unallocated corporate expense: Intangible asset amortization and PP&E step-up depreciation ~$(65) Other items ~$(300) Prior: ~$(280) Operating income $4,610 — $4,710 Prior: $4,540 — $4,690 Interest expense ~$(640) Prior: ~$(620) Effective tax rate % ~13% Prior: Mid 14% Weighted-average diluted shares outstanding, in millions Mid 142 Capital expenditures ~$1,850 1. See the company’s third quarter earnings release for a description of the underlying assumptions, judgments and factors that can affect the company’s ability to achieve guidance or meet expectations. 2. Total Net FAS/CAS pension adjustment is presented as a single amount and includes $245 million of expected CAS pension expense and $210 million of FAS pension service expense, both of which are reflected in operating income. Non-operating FAS pension benefit of $665 million is reflected below operating income, and the total net FAS/CAS pension adjustment is $700 million. 2026 Supplemental Guidance1
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Third Quarter 2026 Conference Call 16 1. See the company’s third quarter earnings release for a description of the underlying assumptions, judgments and factors that can affect the company’s ability to achieve guidance or meet expectations. 2. Inclusive of international and restricted sales. Remaining sales primarily consist of other restricted programs, international, and commercial. Largest remaining unrestricted prime programs fully funded. 3. The graphics shown reflect the U.S. base budget share of total FY27 funding request, excluding classified and international program funding. Role on Program 2026 FY27 Key Program Area % of Total Company Sales1,2 U.S. Base Budget Request 3 National Space Security Mix >15% B-21 Prime ~10% F-35 (Center Fuselage / Sensors / Comms) Sub ~10% Weapons Portfolio Mix ~8% Sentinel Prime ~7% E-2D Prime ~4% Autonomous ISR (Triton / Global Hawk) Prime ~4% Marine Programs Sub ~3% EW Systems (SEWIP / IVEWS / IRCM) Mix ~3% TACAMO Prime ~2% IBCS Prime ~2% Portfolio Well Supported in FY27 U.S. Base Budget Request Deliberately built and continuously shaped portfolio aligned with strategic priorities Funding Legend Fully Funded Mostly Funded Approx. Half Funded Partially Funded
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Third Quarter 2026 Conference Call 17 1. See the company’s third quarter earnings release for a description of the underlying assumptions, judgments and factors that can affect the company’s ability to achieve guidance or meet expectations. 2. Net FAS pension income includes FAS pension service expense (that is a component of operating earnings) and non-operating FAS pension benefit, assumes holding all other pension assumptions constant. 3. FAS Estimates as of 9/30/2026 of $265 million highlighted above include FAS pension service expense of $175 million, and $440 million of non-operating FAS pension benefit. 4. CAS costs not directly impacted in the short term by changes in the discount rate, assumes holding all other pension assumptions constant. 5. Change in discount rate compared to our original guidance provided on 1/27/2026 of 5.58%. Discount rate and cash balance credit rate assumption movements are assumed to be partially linked. Discount Rate Change5 Asset Returns FAS2,3 1.5% 3.0% 4.5% 6.0% 7.5% 0 bps 370 400 435 470 500 25 bps 340 375 410 440 475 50 bps 315 350 380 415 450 75 bps 290 320 355 390 420 100 bps 265 300 330 365 400 CAS4 1.5% 3.0% 4.5% 6.0% 7.5% 140 110 100 90 85 Current estimates1 as of 9/30/2026 inclusive of updated 2026 projections Net pension estimates1 for 2027 have declined compared to initial estimates1 as of 1/27/2026 2027 Net Pension Income Sensitivities ($M) Prior estimates1 as of 1/27/2026 inclusive of demographic update
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Third Quarter 2026 Conference Call 18 Number of Days in Reporting Period1 2026 2025 First Quarter 61 62 Second Quarter 64 64 Third Quarter 63 63 Fourth Quarter 63 62 Full Year 251 251 1. Quarterly information is labeled using a calendar convention; that is, first quarter is consistently labeled as ending on March 31, second quarter as ending on June 30 and third quarter as ending on September 30. It is the company’s long-standing practice to establish actual interim closing dates using a “fiscal” calendar, in which we close our books on a Friday near these quarter-end dates in order to normalize the potentially disruptive effects of quarterly closings on business processes. This practice is only used at interim periods within a reporting year. 2026 Working Days
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Third Quarter 2026 Conference Call 19 Non-GAAP Financial Measures Disclosure: This presentation contains non-GAAP (accounting principles generally accepted in the United States of America) financial measures, as defined by SEC Regulation G and indicated by a footnote in this presentation. Definitions for the non-GAAP measures are provided below and reconciliations are provided in this presentation, except that reconciliations of forward-looking non-GAAP measures are not provided because the company is unable to provide such reconciliations without unreasonable effort due to the uncertainty and inherent difficulty of predicting the occurrence and financial impact of certain items, including, but not limited to, the impact of any mark-to-market pension adjustment. Other companies may define these measures differently or may utilize different non-GAAP measures. MTM-adjusted EPS: Diluted earnings per share excluding the per share impact of MTM benefit (expense) and related tax impacts. This measure may be useful to investors and other users of our financial statements as a supplemental measure in evaluating the company’s underlying financial performance by presenting the company’s diluted earnings per share results before the non-operational impact of pension and OPB actuarial gains and losses. Segment operating income and segment operating margin rate: Segment operating income and segment operating margin rate (segment operating income divided by sales) reflect the combined operating income of our four segments less the operating income associated with intersegment sales. Segment operating income includes pension expense allocated to our sectors under FAR and CAS and excludes FAS pension service expense and unallocated corporate items. These measures may be useful to investors and other users of our financial statements as supplemental measures in evaluating the financial performance and operational trends of our sectors. These measures should not be considered in isolation or as alternatives to operating results presented in accordance with GAAP. Organic sales: Total sales excluding sales attributable to the company’s former training services business. This measure may be useful to investors and other users of our financial statements as a supplemental measure in evaluating the company’s underlying sales growth as well as in understanding our ongoing business and future sales trends by presenting the company’s sales adjusted for the impact of the divestiture. Adjusted free cash flow: Net cash provided by or used in operating activities, less capital expenditures, plus proceeds from the sale of equipment to a customer (not otherwise included in net cash provided by or used in operating activities) and the after-tax impact of discretionary pension contributions. Adjusted free cash flow includes proceeds from the sale of equipment to a customer, if any, as such proceeds were generated in a customer sales transaction. It also includes the after-tax impact of discretionary pension contributions, if any, for consistency and comparability of financial performance. This measure may not be defined and calculated by other companies in the same manner. We use adjusted free cash flow as a key factor in our planning for, and consideration of, acquisitions, the payment of dividends and stock repurchases. This non-GAAP measure may be useful to investors and other users of our financial statements as a supplemental measure of our cash performance, but should not be considered in isolation, as a measure of residual cash flow available for discretionary purposes, or as an alternative to operating cash flows presented in accordance with GAAP. Non-GAAP Definitions
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Third Quarter 2026 Conference Call 20 Three Months Ended September 30 Nine Months Ended September 30 ($M) 2026 2025 2026 2025 Total sales $11,122 $10,423 $31,879 $30,242 Operating income $1,269 $1,242 $3,354 $3,240 Operating margin rate 11.4% 11.9% 10.5% 10.7% Reconciliation to segment operating income: FAS/CAS operating adjustment $(15) $(67) $(29) $(193) Unallocated corporate expense: Gain on sale of training services business — — — (231) Training services divestiture – unallowable state taxes and transaction costs — — — 20 Intangible asset amortization and PP&E step-up depreciation 13 21 51 63 Other unallocated corporate expense 78 81 199 165 Unallocated corporate expense $91 $102 $250 $17 Segment operating income $1,345 $1,277 $3,575 $3,064 Segment operating margin rate 12.1% 12.3% 11.2% 10.1% Segment Operating Income and Margin Rate Non-GAAP Reconciliations
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Third Quarter 2026 Conference Call 21 Three Months Ended September 30 Nine Months Ended September 30 ($M) 2026 2025 2026 2025 Net cash provided by operating activities $1,745 $1,557 $1,369 $860 Capital expenditures (306) (301) (775) (788) Proceeds from sale of equipment to a customer 371 — 371 — Adjusted free cash flow $1,810 $1,256 $965 $72 Adjusted free cash flow Non-GAAP Reconciliations
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Third Quarter 2026 Conference Call 22 Total Company Three Months Ended September 30 % Change Nine Months Ended September 30 % Change($M) 2026 2025 2026 2025 Sales $11,122 $10,423 7% $31,879 $30,242 5% Less: Training services sales — — — (112) Organic Sales $11,122 $10,423 7% $31,879 $30,130 6% Organic Sales Non-GAAP Reconciliations Defense Systems Three Months Ended September 30 % Change Nine Months Ended September 30 % Change($M) 2026 2025 2026 2025 Sales $2,307 $2,059 12% $6,299 $5,855 8% Less: Training services sales — — — (112) Organic Sales $2,307 $2,059 12% $6,299 $5,743 10%
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23Third Quarter 2026 Conference Call