What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2026-02-05 compared with 2025-02-06 · 90 added, 121 removed, 264 unchanged (44% of the section changed)

7 unchanged sentences

We conduct most of our business with the U.S.

Government, primarily the Department of Defense ("DoD").

Government, primarily the Department of War (the "Department").

As prime contractor, principal subcontractor, team member, or partner, we participate in many high-priority U.S.

2 unchanged sentences

Newport News includes all of our nuclear ship design, construction, overhaul, refueling, and repair and maintenance businesses.

Our Mission Technologies segment provides a wide range of services and products, including command, control, computers, communications, cyber, intelligence, surveillance, and reconnaissance systems and operations;

the application of artificial intelligence and machine learning to battlefield decisions;

defense and offensive cyberspace strategies and electronic warfare;

uncrewed autonomous systems;

unmanned autonomous systems;

live, virtual, and constructive training solutions;

fleet sustainment;

platform modernization;

and critical nuclear operations.

1 unchanged sentence

Navy and U.S.

Coast Guard, including amphibious assault ships, expeditionary warfare ships, surface combatants, and national security cutters ("NSC").

Coast Guard, including amphibious assault ships, surface combatants, and national security cutters ("NSC").

We are the sole builder of amphibious assault ships and one of two builders of surface combatants for the U.S.

We are the sole builder of large multi-mission NSCs for the U.S.

Our Ingalls segment is located in Pascagoula, Mississippi on 800 acres along the Pascagoula River.

Amphibious Assault Ships

We construct amphibious assault ships and expeditionary warfare ships for the U.S.

We construct amphibious assault ships for the U.S.

Navy, which include U.S.

Navy large deck amphibious assault ships ("LHA") and amphibious transport dock ships ("LPD"), respectively.

Navy large deck amphibious assault ships ("LHA") and amphibious transport dock ships ("LPD").

The LHA is a key component of the Department of the Navy's requirement for Expeditionary Strike Groups/Amphibious Readiness Groups, and design, construction, and modernization of LHAs are core to our Ingalls operations.

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In 2023, we were awarded a long-lead-time material contract for Helmand Province (LHA 10), and in 2024, we were awarded a contract modification for the detail design and construction of Helmand Province (LHA 10).

The LPD program is a long-running production program of expeditionary warfare ships.

We delivered USS Fort Lauderdale (LPD 28) in 2022 and Richard M.

The LPD program is a long-running production program of amphibious assault ships.

We delivered USS Richard M.

(LPD 29) in 2024.

We are currently constructing Harrisburg (LPD 30), and Pittsburgh (LPD 31).

In 2023, we were awarded a contract to construct Philadelphia (LPD 32).

We are currently constructing Harrisburg (LPD 30), Pittsburgh (LPD 31), and Philadelphia (LPD 32).

In 2024, we were awarded a multi-ship procurement contract for the construction of Travis Manion (LPD 33), LPD 34 (unnamed), and LPD 35 (unnamed).

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We have delivered 36 Arleigh Burke class (DDG 51) destroyers to the U.S.

Navy, including USS Jack H.

Lucas (DDG 125) in 2023, USS Lenah H.

Sutcliffe Higbee (DDG 123) in 2022, and USS Frank E.

(DDG 121) in 2021.

In 2018, we were awarded a multi-year contract for construction of six Arleigh Burke class (DDG 51) destroyers and, in 2020,a contract to construct an additional

Arleigh Burke class (DDG 51) destroyer.

Navy, including USS Ted Stevens (DDG 128) in 2025 and USS Jack H.

Lucas (DDG 125) in 2023.

In 2018, we were awarded a multi-year contract for construction of six Arleigh Burke class (DDG 51) destroyers and, in 2020, a contract to construct an additional Arleigh Burke class (DDG 51) destroyer.

In 2023, we were awarded a multi-year contract for construction of six more Arleigh Burke class (DDG 51) destroyers, as well as the first option ship, for a total of seven ships.

We are currently constructing Ted Stevens (DDG 128), Jeremiah Denton (DDG 129), George M.

We are currently constructing Jeremiah Denton (DDG 129), George M.

Neal (DDG 131), Sam Nunn (DDG 133), and Thad Cochran (DDG 135).

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Coast Guard's recapitalization program is replacing aging and operationally expansive ships and aircraft used to conduct missions in excess of 50 miles from the shoreline.

The flagship of this program is the Legend class NSC, a multi-mission platform we designed and continue to build.

The flagship of this program is the Legend class NSC, a multi-mission platform we designed.

In 2018, we were awarded long-lead-time material and construction contracts for Calhoun (NSC 10), which was delivered to the U.S.

Coast Guard in 2023.

In 2025, we reached agreement with the U.S.

Coast Guard to terminate production and delivery of the 11th and final ship.

The core business of our Newport News segment is designing and constructing nuclear-powered aircraft carriers and submarines, and the refueling and overhaul and the inactivation of nuclear-powered aircraft carriers.

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Ford class (CVN 78) aircraft carriers, Enterprise (CVN 80) and Doris Miller (CVN 81).

Enterprise (CVN 80) has received and loaded all major engine room components, allowing for engine room deck over and acceleration of ship erection, which reached 50% complete in 2025.

Doris Miller (CVN 81) keel units are currently in fabrication and we continue to receive major material components.

The fiscal year 2026 National Defense Authorization Act (“NDAA”) provides authorization for William J.

Clinton (CVN 82) and George W.

Bush (CVN 83), including incremental funding, advance construction, and advance procurement authorities.

We are currently working with the U.S.

Navy to align schedules as a result of late material on Enterprise (CVN 80) and assess technical baseline changes and upgrades to increase carrier lethality for potential incorporation into Enterprise (CVN 80), Doris Miller (CVN 81), and William J.

Clinton (CVN 82).

We continue to be the exclusive prime contractor for nuclear aircraft carrier refueling and complex overhaul ("RCOH").

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Aircraft carriers have a lifespan of approximately 50 years, and we believe the ten Nimitz class (CVN 68) carriers we delivered that are currently in active service, as well as Gerald R.

Ford class (CVN 78) aircraft carriers, present significant opportunities for inactivation contracts as they reach the end of their lifespans.

Ford class (CVN 78) aircraft carriers, present

significant opportunities for inactivation contracts as they reach the end of their lifespans.

We believe we are well positioned to be the U.S.

3 unchanged sentences

Newport News has delivered 65 submarines to the U.S.

Navy since 1960, comprised

of 50 fast attack and 14 ballistic missile submarines.

Our nuclear submarine program, located at our Newport News shipyard, includes construction, engineering, design, research, and integrated planning.

Navy since 1960, comprised of 51 fast attack and 14 ballistic missile submarines.

Our nuclear submarine program includes construction, engineering, design, research, and integrated planning.

Virginia Class (SSN 774) Submarines

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In 2014, the team was awarded a construction contract for the fourth block of ten Virginia class (SSN 774) submarines, which contemplated production of two submarines per year.

The first submarine of the Block IV contract was delivered in 2020, and five more submarines have been delivered through 2024.

The remaining four boats of the Block IV contract are in the final assembly and test phases of construction.

The first submarine of the Block IV contract was delivered in 2020, and seven more submarines have been delivered through 2025.

The remaining two boats of the Block IV contract are in the final assembly and test phases of construction.

In 2019, the team was awarded a construction contract for the fifth block of nine Virginia class (SSN 774) submarines, and, in 2021, an option for a 10th submarine was exercised, continuing the two submarines per year production rate.

1 unchanged sentence

In 2023, the team was awarded a contract modification for advance procurement for long lead-time material in support of two additional Block V boats, bringing the total Block V boats to 12.

In 2025, the team was awarded a contract modification for the construction of these two additional Block V boats.

In 2023, 2024 and 2025, the team received contract awards for advance procurement of long-lead-time material in support of all ten Block VI boats.

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The Columbia class (SSBN 826) program currently anticipates 12 new ballistic missile submarines.

We perform design work as a subcontractor to Electric Boat, and we have entered into a teaming agreement with Electric Boat to build modules for the entire Columbia class (SSBN 826) submarine program that leverages our Virginia class (SSN 774) experience.

As a subcontractor to Electric Boat, we leverage our Virginia class (SSN 774) experience to perform design work and build modules for the entire Columbia class (SSBN 826) submarine program.

Contract award for the first two Columbia class submarines (SSBN 826 and SSBN 827) and construction start of the first Columbia class (SSBN 826) submarine occurred in late 2020.

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Mission Technologies

Our Mission Technologies segment is organized into four groups, All-Domain Operations, Warfare Systems, Global Security, and Uncrewed Systems, and specializes in a wide range of services and products across our capabilities.

Capabilities including command, control, computers, communications, cyber, intelligence, surveillance, and reconnaissance systems and operations;

the application of artificial intelligence and machine learning to battlefield decisions;

defense and offensive cyberspace strategies and electronic warfare;

uncrewed autonomous systems;

live, virtual, and constructive training solutions;

fleet sustainment;

and critical nuclear operations.

Command, control, computers, communications, cyber, intelligence, surveillance, and reconnaissance ("C5ISR")

Our Mission Technologies segment is organized into four groups, All-Domain Operations, Warfare Systems, Global Security, and Unmanned Systems, and specializes in a wide range of services and products across our groups.

All-Domain Operations

Designs, develops, integrates, and manages the sensors, systems, and other assets necessary to support integrated C5ISR operations and accelerated decision-making.

These business activities provide data fusion and mission management capabilities for the DoD, the combatant commands, and the intelligence community.

Cyber and electronic warfare ("CEW&S")

These business activities provide data fusion and mission management capabilities for the Department, the combatant commands, and the intelligence community.

Warfare Systems

Works within our nation’s intelligence and cyber operations communities to defend U.S.

3 unchanged sentences

We also develop, test, and integrate leading-edge AI and machine learning algorithms to optimize and accelerate the nation’s mission-critical systems and platforms.

Live, virtual, and constructive solutions ("LVC")

A trusted partner to our military customers, our capabilities include designing, developing, and operating the largest live, virtual, and constructive enterprise that prepares warfighters for cross-domain battle.

Global Security

A trusted partner to our military, U.S.

Navy, and Department of Energy (“DoE”) customers, our capabilities include designing, developing, and operating the largest live, virtual, and constructive enterprise that prepares warfighters for cross-domain battle.

Our training connects live environments with virtual platforms and simulated (constructive) threats to prepare trainees through integrated, real-world scenarios before they are in harm’s way.

This is a modern and distributed approach to U.S.

military training .

Fleet Sustainment

Provides comprehensive life-cycle sustainment to the U.S.

Navy fleet and other DoD and commercial maritime customers.

Services include maintenance, modernization, and repair on all ship classes;

naval architecture, marine engineering, and design;

integrated logistics support;

technical documentation development;

warehousing, asset management, and material readiness;

operational and maintenance training development and delivery;

software design and development;

IT infrastructure support and data delivery and management;

and cyber security and information assurance.

We also provide undersea vehicle and specialized craft development and prototyping services.

Uncrewed systems

Develops advanced uncrewed systems for defense, marine research, and commercial applications.

Serving customers in more than 30 countries, we provide design, autonomy, manufacturing, testing, operations, and sustainment of uncrewed systems, including uncrewed underwater vehicles and uncrewed surface vessels .

Nuclear and Environmental Services

Nuclear and Environmental Services support the Department of Energy’s ("DoE") national security mission through the management and operation of DoE sites, as well as the safe cleanup of legacy waste across the country.

Through participation in joint ventures, including Newport News Nuclear BWXT Los Alamos, LLC ("N3B"), Mission Support and Test Services, LLC ("MSTS"), and Savannah River Nuclear Solutions, LLC ("SRNS"), we meet customers’ toughest nuclear and environmental challenges.

We maintain and modernize the vast majority of the U.S.

Navy’s fleet, with a holistic approach to life cycle maritime defense systems, from small watercraft to submarines, surface combatants, and aircraft carriers.

We support the DoE’s national security mission through the management and operation of its sites, as well as the safe cleanup of legacy waste across the country .

Unmanned Systems

Creates advanced unmanned systems for defense, marine research, and commercial applications.

Serving customers in more than 30 countries, we provide design, autonomy, manufacturing, testing, operations, and sustainment of unmanned systems, including unmanned underwater vehicles and unmanned surface vessels .

Our revenues are primarily derived from the U.S.

1 unchanged sentence

Navy, the U.S.

Coast Guard, the DoD, the DoE, and other federal agencies.

Coast Guard, the Department, the DoE, and other federal agencies.

In 2025, 2024, and 2023, approximately 81%, 80%, and 81%, respectively, of our revenues were generated from the U.S.

Intellectual Property

We develop new technologies that are incorporated into the products and services we provide to our customers.

We also develop new manufacturing processes and systems-integration technologies and processes that we use to produce our products and to provide services to our customers.

In addition to owning intellectual property, we license intellectual property rights to and from other parties.

Government generally receives non-exclusive

licenses to certain intellectual property we develop in the performance of U.S.

Government contracts and unlimited license rights in technical data developed under our U.S.

Government contracts when such data is developed entirely at government expense.

Government may use or authorize other parties to use the intellectual property we license to the government.

While our intellectual property rights are important to our operations, we do not believe that any existing patent, license, or other intellectual property right is of such importance that its loss or termination would have a material impact on our business.

We develop new technologies, manufacturing processes, and systems-integration processes.

In addition to owning our intellectual property, we license intellectual property rights to and from third parties.

Government generally receives license rights to certain intellectual property developed in the performance of U.S.

Government contracts or with government funding and may use or authorize other parties to use such intellectual property.

See Risk Factors in Item 1A for further discussion regarding risks related to intellectual property.

1 unchanged sentence

The timing of our revenue recognition is based on multiple factors, including the timing of contract awards, the incurrence of contract costs, contract cost estimation, and unit deliveries.

Summary of Significant Accounting Policies in Item 8.

As of December 31, 2024 and 2023, our total backlog was approximately $48.7 billion and $48.1 billion, respectively.

We expect approximately 21% of backlog at December 31, 2024, to be converted into sales in 2025.

Summary of Significant Accounting Policies and Note 7:

Revenue in Item 8.

Raw Materials

We rely on third parties to provide raw materials.

The most significant material we use is steel.

Other materials we use in large quantities include paint, aluminum, pipe, electrical cables, electronic components, fittings, custom machine items, and sensors.

We rely on third parties to provide raw materials and components.

In connection with our U.S.

Government contracts, we are required to procure certain materials and component parts from supply sources approved by the U.S.

For long-term contracts, we generally solicit price quotations for many of our material requirements from multiple suppliers to ensure competitive pricing.

While we have not generally been dependent upon any one supply source, we currently have only one supplier for certain component parts as a result of consolidation in the defense industry.

We have experienced challenges with access to, and the pricing of, certain raw materials, components, and other supplies due to, in part, labor shortages and inflation.

The inability to procure the necessary raw materials, components, and other supplies for our products on a timely and cost-effective basis has negatively affected, and could continue to negatively affect, our results of operations, financial condition, and/or cash flows.

We endeavor to mitigate supply chain risk through various measures, such as negotiating long-term agreements with certain raw material suppliers and through price escalation provisions in certain customer contracts.

See "Risk Factors" in Item 1A for further discussion regarding risks related to raw materials.

We have experienced challenges with access to, and the pricing of, certain raw materials, components, and other supplies.

We endeavor to mitigate supply chain risk through various measures, such as negotiating long-term agreements with certain suppliers and through price escalation provisions in certain customer contracts.

See Risk Factors in Item 1A for further discussion regarding risks related to raw materials and our suppliers.

Regulatory Matters

27 unchanged sentences

Government also regulates the methods by which allowable costs, including overhead, are allocated to government contracts.

Costs we incur that are not allowable under the Federal Acquisition Regulation (the “FAR”) or U.S.

we incur that are not allowable under the Federal Acquisition Regulation (“FAR”) or U.S.

Cost Accounting Standards (“CAS”) or that are otherwise determined to be unallowable or improperly allocated to a specific contract are not recoverable or must be refunded if already reimbursed.

Our business, including contracts with U.S.

Government agencies and subcontracts with other prime contractors, is subject to a variety of laws and regulations, including the FAR, the Defense Federal Acquisition Regulation Supplement ("DFARS"), the Truth in Negotiations Act, the Procurement Integrity Act, the False Claims Act, CAS, the International Traffic in Arms Regulations promulgated under the Arms Export Control Act, the Close the Contractor Fraud Loophole Act, and the Foreign Corrupt Practices Act.

Government agencies and subcontracts with other prime contractors, is subject to a variety of laws and regulations, including the FAR, the Defense Federal Acquisition Regulation Supplement, the Truth in Negotiations Act, the Procurement Integrity Act, the False Claims Act, CAS, the International Traffic in Arms Regulations promulgated under the Arms Export Control Act, the Close the Contractor Fraud Loophole Act, and the Foreign Corrupt Practices Act.

A noncompliance determination by a government agency may result in reductions in contract values, contract modifications or terminations, penalties, fines, repayments, compensatory, treble, or other damages, or suspension or debarment.

We are also subject to evolving cyber security and data privacy and protection laws and regulations, which increase our costs and compliance risks and may affect our competitiveness, cause reputational harm, and expose us to damage claims, substantial fines, and other penalties.

Revenue under Item 8 and "Risk Factors" in Item 1A for further information regarding our contracts.

We are also subject to evolving cybersecurity and data privacy and protection laws and regulations, which increase our costs and compliance risks and may affect our competitiveness, cause reputational harm, and expose us to damage claims, substantial fines, and other penalties.

Revenue in Item 8, the Contracts section under Management's Discussion and Analysis of Financial Condition and Results of Operations in Item 7, and Risk Factors in Item 1A for further information regarding our contracts.

Our nuclear operations are subject to various safety related requirements imposed by the U.S.

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Such laws and regulations impose liability upon a party for environmental cleanup and remediation costs and damage without regard to negligence or fault on the part of such party and could expose us to liability for the conduct of or conditions caused by third parties.

We accrue estimated costs to perform environmental remediation when we determine it is probable we will incur expenses in the future, in amounts we can reasonably estimate, to address environmental conditions at currently or formerly owned or leased operating facilities, or at sites where we are named a Potentially Responsible Party ("PRP") by the U.S.

Environmental Protection Agency ("EPA") or similarly designated by another environmental agency.

5 unchanged sentences

See Risk Factors in Item 1A and Note 16:

Commitments and Contingencies under Item 8 for further information regarding environmental matters.

Commitments and Contingencies in Item 8 for further information regarding environmental matters.

Competitive Environment

In our business of designing, building, overhauling, and repairing military ships, we primarily compete with General Dynamics and, in the case of certain non-nuclear shipbuilding programs, smaller shipyards.

The smaller shipyards sometimes team with large defense contractors.

We operate in a competitive environment and compete with defense companies and other companies serving the intelligence and federal civil markets.

Our Newport News and Ingalls segments compete primarily with General Dynamics and, in the case of certain non-nuclear shipbuilding programs, smaller shipyards.

Intense competition related to programs, resources, funding, and long operating cycles are key characteristics of both our shipbuilding business and the shipbuilding defense industry in general.

For certain ships and nuclear-powered submarines, we currently are the only, or one of the only, companies capable of building such ships or submarines, including LHAs and LPDs for the U.S.

Navy and NSCs for the U.S.

We are one of only two companies currently capable of designing and building nuclear-powered submarines for the U.S.

Navy, and we are party to a long-term teaming agreement with the other company for the production of Virginia class (SSN 774) fast attack nuclear submarines and act as a subcontractor for the production of Columbia class (SSBN 826) ballistic missile submarines.

We are one of only two companies that builds the U.S.

Navy's current fleet of Arleigh Burke class (DDG 51) destroyers.

We also are the only company currently capable of building, refueling, and inactivating the U.S.

Navy's nuclear-powered aircraft carriers and, as a result, believe we are well positioned to be awarded future contracts to perform such activities.

Even so, the U.S.

Government periodically revisits whether refueling of nuclear-powered aircraft carriers should be performed in private or public facilities.

Government shipyard were to become capable and engaged in the refueling of nuclear-powered aircraft carriers, our market position would likely be significantly adversely affected.

It is common industry practice to share work on major programs among a number of companies.

2 unchanged sentences

The nature of major defense programs, conducted under binding long-term contracts, enables companies that perform well to benefit from a level of program continuity not common in many industries.

We believe we are well-positioned in our shipbuilding markets.

Because we are the only company currently capable of building, refueling, and inactivating the U.S.

Navy's nuclear-powered aircraft carriers, we believe we are positioned well to be awarded future contracts to perform such activities.

Even so, the government periodically revisits whether refueling of nuclear-powered aircraft carriers should be performed in private or public facilities.

Government shipyard were to become capable and engaged in the refueling of nuclear-powered aircraft carriers, our market position would likely be significantly and adversely affected.

While we have competed with another large defense contractor to build large deck amphibious ships, we are currently the only builder of large deck amphibious assault ships and expeditionary warfare ships for the U.S.

Navy, including LHAs and LPDs.

We are also the sole builder of NSCs for the U.S.

We are one of only two companies currently capable of designing and building nuclear-powered submarines for the U.S.

Navy, and we are party to long-term teaming agreements with the other company for the production of both Virginia class (SSN 774) fast attack nuclear submarines and Columbia class (SSBN 826) ballistic missile submarines.

We are one of only two companies that builds the U.S.

Navy's current fleet of Arleigh Burke class (DDG 51) destroyers and are positioned well to be awarded future contracts for surface combatant ships.

Our Mission Technologies segment competes domestically and internationally against large aerospace and defense ("A&D") companies, primarily L3 Harris, Amentum, ManTech, Leidos, and, increasingly, small businesses serving the intelligence community.

To a lesser extent, our lines of business compete on certain contracts with major prime A&D contractors, including Lockheed Martin, General Dynamics, Northrop Grumman, RTX Corporation, and Boeing.

Key competitive factors in the Mission Technologies segment include technology capabilities;

innovative cyber advances and artificial intelligence;

the ability to develop and implement complex, integrated solutions;

the ability to meet delivery schedules;

and cost effectiveness.

Our Mission Technologies segment competes domestically and internationally against midsized to large traditional aerospace and defense ("A&D") companies and non-traditional defense technology companies.

Key competitive factors in the Mission Technologies segment include differentiated technology and competitive rates.

Our success depends on investments in our people, technologies, and products to meet the evolving needs of our customers.

To remain competitive, we must be able to identify emerging technology trends and consistently provide superior service, while understanding customer priorities and maintaining customer relationships.

Our success depends upon our ability to develop, market, produce, and deliver our products and services at costs and on schedules consistent with our customers' expectations, as well as our ability to provide the workforce, technologies, facilities, equipment, and financial capacity needed to deliver those products and services with maximum efficiency.

Human Capital Resources

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Our leaders believe each employee contributes to our success.

We have over 44,000 employees.

We have approximately 44,000 employees.

We are the largest industrial employer in Virginia and the largest private employer in Mississippi.

5 unchanged sentences

From nuclear pipe welders to senior executives, we employ approximately 3,850 apprentice school alumni at Newport News and Ingalls.

Approximately 45% of our employees are covered by a total of nine collective bargaining agreements.

Approximately 45% of our employees are covered by a total of 13 collective bargaining agreements.

Newport News has three collective bargaining agreements covering represented employees, which expire in February 2030, December 2030 and April 2031.

Ingalls has five collective bargaining agreements covering represented employees, all of which expire in March 2026.

Approximately 15 Mission Technologies employees in Klamath Falls, Oregon are covered by a collective bargaining agreement that expires in June 2025.

Ingalls has five collective bargaining agreements covering represented employees,

all of which expire in March 2026.

Mission Technologies has a total of 80 employees covered by five collective bargaining agreements, which expire in September 2026, December 2027, September 2028, and two that expire in August 2027.

We have not experienced a work stoppage in more than 26 years at Newport News and more than 18 years at Ingalls.

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• We utilize nationally recognized surveys and outside compensation and benefits consulting firms to independently evaluate the effectiveness of our employee and executive compensation and benefit programs and to provide benchmarking against our peers within the industry.

• The structure of our executive compensation programs balances incentive earnings for both short-term and long-term performance, and we align our executive long-term equity compensation metrics with long-term shareholder interests.

• Employees are eligible for health insurance, paid and unpaid leaves, 401(k) plans, and life and disability/accident insurance coverage.

5 unchanged sentences

and a wellness program that includes physical, mental, and financial wellness components.

We also fund the operation of Family Health Centers near our two shipyards, which provide a full range of medical, lab, pharmacy, dental, physical therapy, and vision services.

We also fund the operation of Family Health Centers near our two shipyards, which provide a full range of medical, lab, pharmacy, physical therapy, and vision services.

Recruitment, Training, and Workforce Development - We are focused on attracting, retaining, and developing a skilled workforce, and in 2025, we hired approximately 8,000 new employees.

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We view our workforce development process as critical to our success and have developed a robust and effective succession planning process that ensures continuity in our leadership ranks.

Since our founding in 2011, we have followed our succession plans over 80% of the time when replacing a vacancy in an existing vice president position, and we have filled approximately 80% of newly created vice president positions with internal hires.

Since our founding in 2011, we have followed our succession plans over 80% of the time when replacing a vacancy in an existing vice president position,

and we have filled approximately 80% of newly created vice president positions with internal hires.

See Risk Factors in Item 1A for further information regarding our human capital resources.

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Government for substantially all of our business;

• significant delays or reductions in appropriations for our programs and/or changes in customer priorities and requirements (including government budgetary constraints, shifts in defense spending, and changes in customer short-range and long-range plans);

• significant delays or reductions in appropriations for our programs and/or changes in customer priorities and requirements (including government budgetary constraints, government shutdowns, shifts in defense spending, and changes in customer short-range and long-range plans);

• our ability to estimate our future contract costs, including cost increases due to inflation, labor challenges, changes in trade policy, or other factors and our efforts to recover or offset such costs and/or changes in estimated contract costs, and perform our contracts effectively;

8 unchanged sentences

• changes in key estimates and assumptions regarding our pension and retiree health care costs;

• security threats, including cyber security threats, and related disruptions;

• security threats, including cybersecurity threats, and related disruptions;

• natural and environmental disasters and political instability;

4 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business