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Item 1. Financial Statements

2026-08-03 compared with 2026-05-04 · 109 added, 95 removed, 457 unchanged (31% of the section changed)

1 unchanged sentence

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

Three Months Ended

April 3, March 28,

Three Months Ended Six Months Ended

July 3, June 27, July 3, June 27,

(In thousands, except per share data) 2026 2025 2026 2025

16 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

Three Months Ended

April 3, March 28,

Three Months Ended Six Months Ended

July 3, June 27, July 3, June 27,

(In thousands) 2026 2025 2026 2025

11 unchanged sentences

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

April 3, December 31,

July 3, December 31,

(In thousands, except per share data) 2026 2025

31 unchanged sentences

100,000,000 shares authorized;

31,873,847 shares issued and 31,310,209 shares outstanding as of April 3, 2026;

31,908,996 shares issued and 31,345,358 shares outstanding as of July 3, 2026;

31,735,083 shares issued and 31,171,445 shares outstanding as of December 31, 2025

Treasury stock, at cost - ( 563,638 ) shares as of both April 3, 2026 and December 31, 2025

Treasury stock, at cost - ( 563,638 ) shares as of both July 3, 2026 and December 31, 2025

( 30,274 ) ( 30,274 )

6 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

Three Months Ended

April 3, March 28,

Six Months Ended

July 3, June 27,

(In thousands) 2026 2025

49 unchanged sentences

Balance at March 28, 2025 31,684 $ 317 $ 769,594 $ 273,642 $ ( 7,736 ) $ 1,035,817

Net income — — — 22,391 — 22,391

Foreign currency translation adjustments — — — — 5,404 5,404

Unrealized loss on cash flow hedge — — — — ( 1,277 ) ( 1,277 )

Employee stock awards and stock options 25 — — — — —

Taxes withheld on stock compensation awards — — ( 321 ) — — ( 321 )

Stock-based compensation — — 3,729 — — 3,729

Balance at June 27, 2025 31,709 $ 317 $ 773,002 $ 296,033 $ ( 3,609 ) $ 1,065,743

Common Stock Issued

12 unchanged sentences

Balance at April 3, 2026 31,874 $ 318 ( 564 ) $ ( 30,274 ) $ 777,994 $ 362,342 $ ( 6,837 ) $ 1,103,543

Net income — — — — — 25,540 — 25,540

Foreign currency translation adjustments — — — — — — 6 6

Unrealized gain on cash flow hedge — — — — — — 1,052 1,052

Employee stock awards and stock options 35 1 — — 81 — — 82

Taxes withheld on stock compensation awards — — — — ( 577 ) — — ( 577 )

Stock-based compensation — — — — 4,810 — — 4,810

Balance at July 3, 2026 31,909 $ 319 ( 564 ) $ ( 30,274 ) $ 782,308 $ 387,882 $ ( 5,779 ) $ 1,134,456

The accompanying notes are an integral part of these financial statements.

20 unchanged sentences

Any cash distributions in excess of cumulative earnings are recorded as a return of investment in investing cash flows within the Condensed Consolidated Statements of Cash Flows.

As of April 3, 2026 and December 31, 2025, the Company's combined investment balance was $ 11.8 million and $ 10.8 million, respectively, included in other non-current assets on the Company's Condensed Consolidated Balance Sheets.

The Company's proportionate share of income from equity method investments was $ 2.1 million and $ 0.8 million for the three months ended April 3, 2026 and March 28, 2025, respectively.

As of July 3, 2026 and December 31, 2025, the Company's combined investment balance was $ 12.1 million and $ 10.8 million, respectively, included in other non-current assets on the Company's Condensed Consolidated Balance Sheets.

The Company's proportionate share of income from equity method investments was $ 1.4 million and $ 3.5 million for the three and six months ended July 3, 2026, respectively, and $ 2.1 million and $ 2.9 million for the three and six months ended June 27, 2025, respectively.

Basis of Presentation

The Company's quarterly financial periods end on the Friday closest to the last day of the calendar quarter (April 3, 2026 for the first quarter of 2026 and March 28, 2025 for the first quarter of 2025), except for the last quarter of the fiscal year, which ends on December 31.

The Company's quarterly financial periods end on the Friday closest to the last day of the calendar quarter (July 3, 2026 for the second quarter of 2026 and June 27, 2025 for the second quarter of 2025), except for the last quarter of the fiscal year, which ends on December 31.

For ease of presentation, the quarterly financial statements included herein are described as three months ended.

6 unchanged sentences

Revenue and net income for any interim period are not necessarily indicative of future or annual results.

Certain prior year amounts have been reclassified to conform to the current year presentation.

These reclassifications had no material impact on the results of operations, financial position, or changes in shareholders’ equity.

Restricted Cash

As of April 3, 2026, the Company had total cash, cash equivalents, and restricted cash of $ 208.7 million which included $ 4.0 million of restricted cash.

As of July 3, 2026, the Company had total cash, cash equivalents, and restricted cash of $ 214.3 million which included $ 4.0 million of restricted cash.

The Company's restricted cash was $ 3.0 million as of December 31, 2025.

5 unchanged sentences

The CCA implementation costs are included within operating activities on the Company's Condensed Consolidated Statements of Cash Flows.

As of April 3, 2026 and December 31, 2025, the Company had total capitalized CCA implementation costs, net of accumulated amortization, of $ 24.2 million and $ 25.1 million, respectively, included in prepaid expenses and other current assets and other non-current assets on the Company's Condensed Consolidated Balance Sheets.

As of July 3, 2026 and December 31, 2025, the Company had total capitalized CCA implementation costs, net of accumulated amortization, of $ 24.5 million and $ 25.1 million, respectively, included in prepaid expenses and other current assets and other non-current assets on the Company's Condensed Consolidated Balance Sheets.

Prepaid Expenses and Other Current Assets

The components of prepaid expenses and other current assets are as follows:

April 3, December 31,

July 3, December 31,

(In thousands) 2026 2025

33 unchanged sentences

Remaining performance obligations are presented in the following table:

April 3, December 31,

July 3, December 31,

(In millions) 2026 2025

Performance Obligations $ 3,731 $ 3,375

As of April 3, 2026, the Company expects to recognize approximately 57 % of the remaining performance obligations as revenue in 2026 and the majority of the remainder of the balance as revenue in 2027 and 2028.

As of July 3, 2026, the Company expects to recognize approximately 53 % of the remaining performance obligations as revenue in 2026 and the majority of the remainder of the balance as revenue in 2027 and 2028.

Contract Estimates

The impact of adjustments in contract estimates on the Company's operating income can be reflected in either revenue or cost of revenue.

Cumulative adjustments decreased operating income by $ 1.1 million for the three months ended April 3, 2026 and increased operating income by $ 4.2 million for the three months ended March 28, 2025 .

For the three months ended April 3, 2026 and March 28, 2025, the net adjustments to operating income increased revenue by $ 2.6 million and $ 14.8 million, respectively.

Cumulative adjustments for the three months ended July 3, 2026 and June 27, 2025 increased operating income by $ 1.8 million and $ 1.4 million, respectively.

Cumulative adjustments for the six months ended July 3, 2026 and June 27, 2025 increased operating income by $ 0.7 million and $ 5.6 million, respectively.

For the three and six months ended July 3, 2026, the net adjustments to operating income increased revenue by $ 2.8 million and $ 5.4 million, respectively.

For the three and six months ended June 27, 2025, the net adjustments to operating income increased revenue by $ 4.9 million and $ 19.7 million, respectively.

Revenue by Category

15 unchanged sentences

Revenue by contract type is as follows:

Three Months Ended

April 3, March 28, %

(In thousands) 2026 2025 Change

Three Months Ended Six Months Ended

July 3, June 27, % July 3, June 27, %

(In thousands) 2026 2025 Change 2026 2025 Change

Cost-plus and cost-reimbursable $ 735,218 $ 647,582 13.5 % $ 1,487,623 $ 1,270,653 17.1 %

3 unchanged sentences

Revenue by geographic region in which the contract is performed is as follows:

Three Months Ended

April 3, March 28, %

(In thousands) 2026 2025 Change

Three Months Ended Six Months Ended

July 3, June 27, % July 3, June 27, %

(In thousands) 2026 2025 Change 2026 2025 Change

United States $ 797,512 $ 632,357 26.1 % $ 1,608,066 $ 1,209,815 32.9 %

4 unchanged sentences

Revenue by contract relationship is as follows:

Three Months Ended

April 3, March 28, %

(In thousands) 2026 2025 Change

Three Months Ended Six Months Ended

July 3, June 27, % July 3, June 27, %

(In thousands) 2026 2025 Change 2026 2025 Change

Prime contractor $ 1,206,600 $ 1,008,340 19.7 % $ 2,404,062 $ 1,972,086 21.9 %

2 unchanged sentences

Revenue by customer is as follows:

Three Months Ended

April 3, March 28, %

(In thousands) 2026 2025 Change

Three Months Ended Six Months Ended

July 3, June 27, % July 3, June 27, %

(In thousands) 2026 2025 Change 2026 2025 Change

Army $ 422,112 $ 457,443 ( 7.7 ) % $ 862,226 $ 899,579 ( 4.2 ) %

10 unchanged sentences

These assets and liabilities are reported on the Condensed Consolidated Balance Sheets on a contract-by-contract basis at the end of each reporting period.

As of January 1, 2025, the Company had contract assets of $ 620.5 million.

As of April 3, 2026 and December 31, 2025, the Company had contract assets of $ 647.2 million and $ 637.2 million, respectively.

As of July 3, 2026 and December 31, 2025, the Company had contract assets of $ 649.1 million and $ 628.5 million, respectively.

Contract assets primarily consist of unbilled receivables which represent rights to consideration for work completed but not billed as of the reporting date.

4 unchanged sentences

Refer to Note 4, Receivables for additional information regarding the composition of the Company's receivable balances.

As of January 1, 2025, the Company had contract liabilities of $ 98.7 million.

As of April 3, 2026 and December 31, 2025, contract liabilities, included in other accrued liabilities in the Condensed Consolidated Balance Sheets, were $ 122.2 million and $ 109.4 million, respectively.

As of July 3, 2026 and December 31, 2025, contract liabilities, included in other accrued liabilities in the Condensed Consolidated Balance Sheets, were $ 97.8 million and $ 100.7 million, respectively.

As of January 1, 2025, the Company had contract assets of $ 620.5 million and contract liabilities of $ 98.7 million.

Receivables were comprised of the following:

April 3, December 31,

July 3, December 31,

(In thousands) 2026 2025

3 unchanged sentences

Total receivables $ 827,359 $ 730,256

As of April 3, 2026 and December 31, 2025, substantially all billed receivables were due from the U.S.

As of July 3, 2026 and December 31, 2025, substantially all billed receivables were due from the U.S.

government, either directly as prime contractor to the U.S.

3 unchanged sentences

Unbilled receivables are contract assets that represent revenue recognized on long-term contracts in excess of amounts billed as of the balance sheet date.

The Company expects to bill customers for most of the April 3, 2026 contract assets during 2026.

The Company expects to bill customers for most of the July 3, 2026 contract assets during 2026.

Changes in the balance of receivables are primarily due to the timing differences between performance and customers' payments.

1 unchanged sentence

First Lien Credit Agreement

On January 2, 2025, the First Lien Credit Agreement was amended to provide, among other things, a new tranche of term loans in an aggregate original principal amount of $ 899.8 million (the New Term Loans), in which the New Term Loans replace or refinance in full all the existing term loans outstanding under the First Lien Term Tranche in effect immediately prior to the amendment (the Existing Term Loans).

On May 29, 2026, the First Lien Credit Agreement was amended to provide, among other things, a new tranche of term loans in an aggregate original principal amount of $ 868.5 million (the New Term Loans), in which the New Term Loans replace or refinance in full all the existing term loans outstanding under the First Lien Term Tranche in effect immediately prior to the amendment (the Existing Term Loans).

The loans under the First Lien Credit Agreement, as amended (the First Lien Credit Agreement), amortize in an amount equal to approximately $ 2.2 million per quarter through September 30, 2030, with the balance of $ 829.4 million due on December 6, 2030.

The replacement of the Existing Term Loans with the New Term Loans resulted in a loss on extinguishment of debt of $ 2.2 million in the Condensed Consolidated Statement of Income for the three months ended March 28, 2025.

The replacement of the Existing Term Loans with the New Term Loans resulted in a loss on extinguishment of debt of $ 1.7 million in the Condensed Consolidated Statement of Income for both the three and six months ended July 3, 2026.

On January 2, 2025, the First Lien Credit Agreement was amended to provide, among other things, a new tranche of term loans to replace or refinance in full all the existing term loans outstanding under the First Lien Term Tranche, resulting in a loss on extinguishment of debt of $ 2.0 million in the Condensed Consolidated Statement of Income for the six months ended June 27, 2025.

V2X LLC (V2X Borrower) obligations under the First Lien Credit Agreement are guaranteed by V2X Intermediate LLC and V2X Borrower’s wholly-owned domestic subsidiaries (collectively, the Guarantors), subject to customary exceptions and limitations.

1 unchanged sentence

The borrowings under the First Lien Credit Agreement bear interest at rates that, at the V2X Borrower’s option, can be either a base rate, determined by reference to the greater of (a) the federal funds rate plus 0.50 %, (b) the prime lending rate, or (c) an adjusted Secured Overnight Financing Rate (SOFR) rate plus 1.00 %, plus a margin of 1.00 % per annum, or SOFR, plus a margin of 2.00 % per annum.

As of April 3, 2026, the effective interest rate for the First Lien Credit Agreement was 6.47 %.

As of July 3, 2026, the effective interest rate for the First Lien Credit Agreement was 6.18 %.

The First Lien Credit Agreement contains customary representations and warranties and affirmative covenants.

2 unchanged sentences

If an event of default occurs and is continuing, the V2X Borrower may be required immediately to repay all amounts outstanding under the First Lien Credit Agreement.

As of April 3, 2026, the carrying value of the First Lien Credit Agreement was $ 868.5 million, excluding deferred discount and unamortized deferred financing costs of $ 22.6 million.

The estimated fair value of the First Lien Credit Agreement as of April 3, 2026 was $ 867.4 million.

As of July 3, 2026, the carrying value of the First Lien Credit Agreement was $ 866.4 million, excluding deferred discount and unamortized deferred financing costs of $ 20.9 million.

The estimated fair value of the First Lien Credit Agreement as of July 3, 2026 was $ 864.2 million.

The fair value is based on observable inputs of interest rates that are currently available to us for debt with similar terms and maturities for non-public debt (Level 2).

7 unchanged sentences

The borrowings under the 2023 Credit Agreement bear interest at rates that, at the V2X Borrower’s option, can be either a base rate, determined by reference to the greater of (a) the federal funds rate plus 0.50 %, (b) the prime lending rate, or (c) an adjusted SOFR rate plus 1.00 %, plus a margin of 0.50 % to 1.50 % per annum, or SOFR, plus a margin of 1.50 % to 2.50 % per annum, in each case, depending on the consolidated total net leverage ratio of the V2X Borrower and its subsidiaries.

As of April 3, 2026, the effective interest rate for the 2025 Term Loans was 5.59 %.

As of July 3, 2026, the effective interest rate for the 2025 Term Loans was 5.82 %.

Unutilized commitments under the 2025 Revolver are subject to a per annum fee ranging from 0.25 % to 0.375 % depending on the consolidated total net leverage ratio of the V2X Borrower and its subsidiaries.

5 unchanged sentences

If an event of default occurs and is continuing, the V2X Borrower may be required immediately to repay all amounts outstanding under the 2023 Credit Agreement.

As of April 3, 2026, there were no outstanding borrowings and $ 21.0 million of outstanding letters of credit under the 2025 Revolver.

Availability under the 2025 Revolver was $ 479.0 million as of April 3, 2026.

As of July 3, 2026, there were no outstanding borrowings and $ 14.9 million of outstanding letters of credit under the 2025 Revolver.

Availability under the 2025 Revolver was $ 485.1 million as of July 3, 2026.

Unamortized deferred financing costs related to the 2025 Revolver of $ 3.5 million are included in other non-current assets in the Condensed Consolidated Balance Sheets.

As of April 3, 2026, the fair value of the 2025 Revolver approximated the carrying value because the debt bears a floating interest rate.

As of April 3, 2026, the carrying value of the 2025 Term Loans was $ 231.6 million, excluding unamortized deferred financing costs of $ 1.6 million.

The estimated fair value of the 2025 Term Loans as of April 3, 2026 was $ 231.3 million.

As of July 3, 2026, the fair value of the 2025 Revolver approximated the carrying value because the debt bears a floating interest rate.

As of July 3, 2026, the carrying value of the 2025 Term Loans was $ 220.1 million, excluding unamortized deferred financing costs of $ 1.5 million.

The estimated fair value of the 2025 Term Loans as of July 3, 2026 was $ 220.2 million.

The fair value is based on observable inputs of interest rates that are currently available to us for debt with similar terms and maturities for non-public debt (Level 2).

The aggregate scheduled maturities of the First Lien Credit Agreement and 2023 Credit Agreement as of April 3, 2026 are as follows:

The aggregate scheduled maturities of the First Lien Credit Agreement and 2023 Credit Agreement as of July 3, 2026 are as follows:

(In thousands) Payments due

2 unchanged sentences

Total $ 1,086,429

As of April 3, 2026, the Company was in compliance with all covenants related to the First Lien Credit Agreement and the 2023 Credit Agreement.

As of July 3, 2026, the Company was in compliance with all covenants related to the First Lien Credit Agreement and the 2023 Credit Agreement.

DERIVATIVE INSTRUMENTS

2 unchanged sentences

Interest Rate Derivative Instruments

As of April 3, 2026, the Company held $ 450.0 million of interest rate swap contracts to mitigate risks to earnings and cash flows relating to fluctuations in interest rates.

As of April 3, 2026 and December 31, 2025, these contracts had notional values of $ 425.0 million and $ 428.1 million, respectively.

As of July 3, 2026, the Company held $ 350.0 million of interest rate swap contracts to mitigate risks to earnings and cash flows relating to fluctuations in interest rates.

During the three months ended July 3, 2026 , the Company elected not to renew certain interest rate swap contracts, which resulted in a decrease in interest rate swap contracts of $ 100.0 million from the quarter ended April 3, 2026.

As of July 3, 2026 and December 31, 2025, these contracts had notional values of $ 321.9 million and $ 428.1 million, respectively.

These contracts are designated and qualify as effective cash flow hedges.

1 unchanged sentence

Fair Value (level 2)

April 3, December 31,

July 3, December 31,

(In thousands) Balance sheet caption 2026 2025

Interest rate swap designated as cash flow hedge Prepaid expenses and other current assets $ 894 $ —

Interest rate swap designated as cash flow hedge Other non-current assets $ 571 $ —

Interest rate swap designated as cash flow hedge Other accrued liabilities $ — $ 770

2 unchanged sentences

The Company regularly assesses the creditworthiness of the counterparty.

As of April 3, 2026, the counterparty to the interest rate swaps had performed in accordance with its contractual obligations.

As of July 3, 2026, the counterparty to the interest rate swaps had performed in accordance with its contractual obligations.

Both the counterparty credit risk and the Company's credit risk were considered in the fair value determination.

Net interest rate derivative gains of $ 0.7 million were recognized in interest expense, net, in the Condensed Consolidated Statements of Income for the three months ended March 28, 2025.

Net interest rate derivative gains were immaterial for the three months ended April 3, 2026 .

The Company expects $ 0.2 million of existing interest rate swap gains reported in accumulated other comprehensive loss as of April 3, 2026 to be recognized in earnings within the next 12 months.

Net interest rate derivative expenses of $ 2.9 million were recognized in interest expense, net, in the Condensed Consolidated Statements of Income for both the three and six months ended July 3, 2026.

Net interest rate derivative gains of $ 0.8 million and $ 1.5 million were recognized in interest expense, net, in the Condensed Consolidated Statements of Income for the three and six months ended June 27, 2025, respectively.

The Company expects $ 0.9 million of existing interest rate swap gains reported in accumulated other comprehensive loss as of July 3, 2026 to be recognized in earnings within the next 12 months.

COMMITMENTS AND CONTINGENCIES

8 unchanged sentences

Such assessments, along with any assessments regarding provisions for other legal proceedings, are reviewed on a quarterly basis for sufficiency based on the latest information available to us.

The Company estimated and accrued $ 13.2 million and $ 14.4 million as of April 3, 2026 and December 31, 2025, respectively, in other accrued liabilities in the Condensed Consolidated Balance Sheets for legal proceedings and for claims with respect to its U.S.

The Company estimated and accrued $ 15.7 million and $ 14.4 million as of July 3, 2026 and December 31, 2025, respectively, in other accrued liabilities in the Condensed Consolidated Balance Sheets for legal proceedings and for claims with respect to its U.S.

government contracts as discussed below, including years where the U.S.

36 unchanged sentences

Stock-based compensation expense and the associated tax benefits impacting the Company's Condensed Consolidated Statements of Income were as follows:

Three Months Ended

April 3, March 28,

Three Months Ended Six Months Ended

July 3, June 27, July 3, June 27,

(In thousands) 2026 2025 2026 2025

1 unchanged sentence

Future tax benefit $ 1,112 $ 888 $ 1,946 $ 1,471

As of April 3, 2026, total unrecognized compensation costs related to equity-based awards were $ 35.2 million, which are expected to be recognized ratably over a weighted average period of 2.0 years.

The following table provides a summary of the activities for NQOs, RSUs and PSUs for the three months ended April 3, 2026:

As of July 3, 2026, total unrecognized compensation costs related to equity-based awards were $ 31.4 million, which are expected to be recognized ratably over a weighted average period of 1.8 years.

The following table provides a summary of the activities for NQOs, RSUs and PSUs for the six months ended July 3, 2026:

NQOs RSUs PSUs

6 unchanged sentences

Forfeited or expired — $ — ( 11 ) $ 53.80 ( 1 ) $ 77.07

Outstanding at April 3, 2026 6 $ 21.98 407 $ 57.72 345 $ 61.64

Outstanding at July 3, 2026 3 $ 21.98 379 $ 59.26 344 $ 61.70

Restricted Stock Units

3 unchanged sentences

Stock compensation expense will be recognized ratably over the requisite service period of the RSU awards.

As of April 3, 2026, there was $ 19.4 million of unrecognized RSU related compensation expense.

As of July 3, 2026, there was $ 17.1 million of unrecognized RSU related compensation expense.

Performance Share Units

During the three months ended April 3, 2026, the Company granted PSUs that become eligible to vest based on the achievement of Adjusted Earnings Per Share (adjusted EPS) and relative Total Shareholder Return (rTSR) goals over the three-year performance period.

The performance-based awards will vest and the stock will be issued at the end of a three-year period based on i) Company performance against an annual adjusted EPS target established each year, over 3 years, as determined by the Compensation and Human Capital Committee, and a 3 -year rTSR modifier as compared to certain Aerospace & Defense companies approved by the Compensation and Human Capital Committee and assuming ii) the employee’s continued service through the vesting date in accordance with the terms of the 2014 Omnibus Plan.

During the six months ended July 3, 2026, the Company granted PSUs that become eligible to vest based on the achievement of Adjusted Earnings Per Share (adjusted EPS) and relative Total Shareholder Return (rTSR) goals over the three-year performance period.

The performance-based awards will vest and the stock will be issued at the end of a three-year period based on i) Company performance against an annual adjusted EPS target established each year, over 3 years, as determined by the Compensation and Human Capital Committee of the Company’s Board of Directors (Compensation Committee), and a 3 -year rTSR modifier as compared to certain Aerospace & Defense companies approved by the Compensation Committee and assuming ii) the employee’s continued service through the vesting date in accordance with the terms of the 2014 Omnibus Plan.

The number of shares ultimately awarded, if any, can range up to 200 % of the specified target awards.

1 unchanged sentence

The fair value is based on the average of the results.

As of April 3, 2026, there was $ 15.8 million of unrecognized PSU related compensation expense.

As of July 3, 2026, there was $ 14.3 million of unrecognized PSU related compensation expense.

Effective Tax Rate

1 unchanged sentence

The computation of the estimated effective income tax rate at each interim period requires certain estimates and judgment including, but not limited to, forecasted operating income for the year, projections of the income earned and taxed in various jurisdictions, newly enacted tax rate and legislative changes, permanent and temporary differences, and the likelihood of recovering deferred tax assets generated in the current year.

For the three months ended April 3, 2026 and March 28, 2025, the Company recorded income tax expense of $ 4.6 million and $ 2.0 million, respectively.

The Company's effective income tax rate for both the three months ended April 3, 2026 and March 28, 2025 was 19.5 %.

For the three months ended July 3, 2026 and June 27, 2025, the Company recorded income tax expense of $ 7.7 million and $ 7.1 million, respectively, representing effective income tax rates of 23.1 % and 24.0 %, respectively.

For the six months ended July 3, 2026 and June 27, 2025 , the Company recorded income tax expense of $ 12.3 million and $ 9.0 million, respectively, representing effective income tax rates of 21.6 % and 22.8 %, respectively.

The effective income tax rates vary from the federal statutory rate of 21.0% mainly due to state and foreign taxes, Net Controlled Foreign Corporation Tested Income (NCTI), disallowed compensation deduction under Internal Revenue Code Section 162(m), offset by foreign derived intangible income deduction, available deductions not included in book income and income tax credits.

Uncertain Tax Positions

As of both April 3, 2026 and December 31, 2025, unrecognized tax benefits from uncertain tax positions were $ 1.2 million.

As of both July 3, 2026 and December 31, 2025, unrecognized tax benefits from uncertain tax positions were $ 1.2 million.

The One Big Beautiful Bill Act (OBBBA) was enacted on July 4, 2025.

1 unchanged sentence

The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027.

There was not a significant impact on our income tax expense or effective tax rate for the three months ended April 3, 2026.

The OBBA did not significantly impact our income tax expense or effective tax rate for the three and six months ended July 3, 2026.

EARNINGS PER SHARE

2 unchanged sentences

Diluted EPS includes the dilutive effect of stock-based compensation outstanding after application of the treasury stock method.

Three Months Ended

April 3, March 28,

Three Months Ended Six Months Ended

July 3, June 27, July 3, June 27,

(In thousands, except per share data) 2026 2025 2026 2025

8 unchanged sentences

The following table summarizes the weighted average of anti-dilutive securities excluded from the diluted EPS calculation.

Three Months Ended

April 3, March 28,

Three Months Ended Six Months Ended

July 3, June 27, July 3, June 27,

(In thousands) 2026 2025 2026 2025

Anti-dilutive restricted stock units and performance share units 108 104 68 45

Total 108 104 68 45

POST-EMPLOYMENT BENEFIT PLANS

4 unchanged sentences

Adjustments to the fair value of plan investments and obligations are recorded in selling, general, and administrative expenses.

The plan assets and liabilities were $ 5.6 million and $ 5.8 million as of April 3, 2026 and December 31, 2025, respectively.

The plan assets and liabilities were $ 6.0 million and $ 5.8 million as of July 3, 2026 and December 31, 2025, respectively.

Multi-Employer Pension Plans

Certain Company employees who perform work on contracts within the continental United States participate in multi-employer pension plans of which the Company is not the sponsor.

Company expenses related to these plans were $ 5.4 million and $ 4.0 million for the three months ended April 3, 2026 and March 28, 2025, respectively.

Company expenses related to these plans were $ 4.5 million and $ 9.9 million for the three and six months ended July 3, 2026, respectively, and $ 4.9 million and $ 8.9 million for the three and six months ended June 27, 2025, respectively.

SALE OF RECEIVABLES

6 unchanged sentences

As of and for the

Three Months Ended

April 3, March 28,

Six Months Ended

July 3, June 27,

(In thousands) 2026 2025

8 unchanged sentences

Remaining sold receivables $ 113,004 $ 149,954

1 For the three months ended April 3, 2026, the Company recorded a net cash outflow, excluding fees, from sale of receivables of $ 102.0 million from operating activities.

2 Includes the cash collected on behalf of, but not yet remitted to, MUFG as of April 3, 2026.

1 For the six months ended July 3, 2026, the Company recorded a net cash outflow, excluding fees, from sale of receivables of $ 142.9 million from operating activities.

2 Includes the cash collected on behalf of, but not yet remitted to, MUFG as of July 3, 2026.

This balance is included in other accrued liabilities as of the balance sheet date.

During the three months ended April 3, 2026 and March 28, 2025, the Company incurred purchase discount fees, net of servicing fees, of $ 2.4 million and $ 2.5 million, respectively, which are presented in other expense, net on the Condensed Consolidated Statements of Income and are reflected as cash flows from operating activities on the Condensed Consolidated Statements of Cash Flows.

During the three months ended July 3, 2026 and June 27, 2025, the Company incurred purchase discount fees, net of servicing fees, of $ 2.2 million and $ 2.6 million, respectively, which are presented in other expense, net on the Condensed Consolidated Statements of Income.

During the six months ended July 3, 2026 and June 27, 2025 , the Company incurred purchase discount fees, net of servicing fees, of $ 4.6 million and $ 5.1 million , respectively, which are presented in other expense, net on the Condensed Consolidated Statements of Income and are reflected as cash flows from operating activities on the Condensed Consolidated Statements of Cash Flows.

The Company does not retain an ongoing financial interest in the transferred receivables other than cash collection and administrative services.

The Company estimated that its servicing fee was at fair value and therefore has not recognized a servicing asset or liability as of April 3, 2026.

The Company estimated that its servicing fee was at fair value and therefore has not recognized a servicing asset or liability as of July 3, 2026.

Proceeds from the sale of receivables are reflected as cash inflows from operating activities on the Condensed Consolidated Statements of Cash Flows.

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The CODM uses consolidated profit metrics, including net income and operating income, as reported on the Condensed Consolidated Statements of Income, to allocate resources and assess financial performance.

Our CODM reviews significant expenses as reported in the Condensed Consolidated Statements of Income in addition to depreciation and amortization information, which is summarized below for the three months ended April 3, 2026 and March 28, 2025:

Three Months Ended

April 3, March 28,

Three Months Ended Six Months Ended

July 3, June 27, July 3, June 27,

(In thousands) 2026 2025 2026 2025

1 unchanged sentence

The CODM also reviews consolidated capital expenditures as reported as purchases of capital assets in the Condensed Consolidated Statements of Cash Flows.

SUBSEQUENT EVENTS

The LOGCAP V - Kuwait Task Order is exercised through June 30, 2026.

On April 14, 2026, the U.S.

Department of the Army notified the Company of its intent to modify the scope of work performed under this task order beyond the current performance period, which could result in a reduction in the work being performed under the task order.

The Company is working with the U.S.

Department of the Army to address any changes to this task order, in light of Operation Epic Fury, beyond the current performance period of June 2026.

For further discussion, see Item 2.

M anagement's Discussion and Analysis of Financial Condition and Results of Operations - Significant Contracts in this Quarterly Report on Form 10-Q.

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-Q

Item 1. Financial Statements