F/A-XX could be the Navy's last piloted fighter, bring greater range
F/A-XX will include new capabilities and technologies, such as artificial intelligence and machine learning, Rear Adm. Michael Donnelly said at the Navy League's Sea Air Space conference. The upgrades will provide more battlespace awareness and improve how naval aviators make decisions.
Those technological advancements could help bring the Navy into a new era where piloted and unmanned aircraft operate more closely together, such as with the Navy's planned AI-operated drone wingmen, known as collaborative combat aircraft, or larger, unmanned platforms that might come in the future.
'It could be our last tactical manned fighter that we operate out of the Navy,' Donnelly said. 'It will actually be at a point where we are more man-on-the-loop than man-in-the-loop, and be the bridge to fully integrating towards the hybrid air wing [combining crewed and uncrewed platforms] in the future, in the 2040s.'
Donnelly said the F/A-XX will allow the Navy to operate in contested environments and outmatch adversaries in ways that surpass the Navy's current fighters.
'We do that today, but we do it at parity because of the capabilities we have fielded today,' Donnelly said. 'So F/A-XX is going to be that next improvement.'
Navy officials would not say when an announcement on F/A-XX would be made, but it could come soon. The Air Force's counterpart to the Navy's F/A-XX — the Boeing-made F-47 Next Generation Air Dominance fighter — was announced by President Donald Trump in an Oval Office event March 21. Breaking Defense reported last month that Lockheed Martin had been eliminated from the running for F/A-XX, leaving Boeing and Northrop Grumman as the remaining competitors.
At the Sea Air Space event, Donnelly told reporters that F/A-XX is expected to be able to fly more than 25% farther than Navy's current fighters before having to top up with a refueling tanker.
The F/A-18 Super Hornet has a combat range of about 1,275 nautical miles, and the carrier-based F-35C Joint Strike Fighter can fly more than 1,200 nautical miles.
'That's a core attribute of the F/A-XX,' Donnelly told reporters. 'It will definitely have longer inherent range, and then with refueling, you could say that's indefinite, as long as refueling is available.'
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Bloomberg
23 minutes ago
- Bloomberg
Ares CEO Arougheti on Earnings, M&A Demand, 401(k) Market
Live on Bloomberg TV CC-Transcript 00:00I want to start with this idea that you did a really solid performance despite the fact that LBO volumes were materially lower than last year and there was this expectation that deals were going to pick up in the second half because of trade certainty. Well, have we gotten that certainty to really kick start that type of corporate activity? There's a misconception that alternative asset management is just driven solely by M & A and private equity volumes. But when you really zoom out, you say what? What is going on in the private markets? We are active in digital infrastructure, real estate, private credit, asset based finance, and really a broad cross-section of the global economy. So if you look at our quarter, we put $27 billion to work this quarter in a very subdued deal environment. What's happening now in the private markets is there's a huge need for liquidity solutions and refinancing. If you look at private equity is one example. There's about $3 trillion of private equity that's been invested that needs to get returned to invest to investors and about $1,000,000,000,000 of new capital that needs to get put to work. So there's this huge imbalance. And so one of the things that private market providers like us are doing now is really coming in with creativity and innovative solutions to try to buy down that installed base of private equity. So we're not really reliant on deal volume. Obviously, we love it when the markets are ripping, but when they're not, it's it's still pretty good. Does that mean that the lesson you learned from this period of when things are backlogged and again, just given the breadth of the success in your earnings that you need to deemphasize some parts of the business that are more sensitive to M & A, that have more of a cyclical type of attribute to them. I think I don't know if we want to deemphasize. 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I think in the on the private market side, you have to appreciate that the structure of the capital actually has a timeline on it. And so one of the things that people need to understand is just the weight of money in the private markets requires transaction activity. And so that $3.2 trillion that I mentioned, you know, half of it is over five years old. And there's a desire to get that money back to investors to get the gears moving again. And so even if you don't have M & A, people are going to be looking for ways in the secondary market, for example, to do transactions. So I think you're going to continue to see, you know, the weight of the money and the time constraint push companies into the market. And I think on the corporate side, you know, there's there's a desire to grow, too. We did see corporate M & A pick up dramatically even in the last week. I'm sure if you talk to the sell side bankers, they'll tell you the level of pipeline and pipeline activity is picking up dramatically. So, you know, I can't quantify what that looks like, but if June was an indicator, you know, and we get some stability here, I think third and fourth quarter could be pretty robust. You mentioned the tax bills behind us, tariff uncertainty, potentially some of it behind us. You see a lot of signal less noise coming from that. And then there's this idea of deregulation is that's what pushing potentially some of this M & A. I think there's absolutely a tone and it's funny you saw pre Liberation Day, January, February, just the exuberance with the new administration, pro-business deregulation and you saw people come off the sidelines dramatically and then we took a pause. Now that we've digested, you're beginning to feel that again. So I don't want to say that the animal spirits have been unleashed, but the confidence that the administration wants to push transaction volume is pro-business and focused on drag, I think is is going to be a catalyst for sure. When you talk, I hear an economy flush with capital. I hear an economy that has plenty of access to financing. I hear that financing is not tight in any capacity. We're talking about tightest spreads in the global credit market, in public markets going back to 2007. Do you think it is appropriate to start talking about more accommodation from the Fed or do you think that that's problematic given what you're actually seeing on the ground with some of the companies that you're investing in? Everything that we're seeing says that the economy is on stable footing. We're seeing continued growth. As an example, we reported earnings in our publicly traded BDC 13% year over year EBIT growth, and those companies, while levered, have actually digested the higher cost of capital pretty well. So to your point, we're living in a higher rate environment. The plumbing is working, nothing's broken. Almost every liquid market is near all time tights. So it doesn't feel necessary to to take a more accommodative stance. I think tariffs will be inflationary. I know that there's an argument that some people put forward that it won't be, but to the extent that they will be and the economy continues to grow, that would argue for rates to stay higher for longer or at least to see a slower trend down. So, Mike, in this quarter you had really robust fundraising coming from a variety of sources, but part of that was wealth, too. We're in this environment right now where there's an expectation that the Trump administration is going to open up for a one KS to some private assets. 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Business Wire
an hour ago
- Business Wire
RBC Bearings Incorporated Announces Fiscal First Quarter 2026 Results
OXFORD, Conn.--(BUSINESS WIRE)--RBC Bearings Incorporated (NYSE: RBC), a leading international manufacturer of highly engineered precision bearings, components and essential systems for the industrial, defense and aerospace industries, today reported results for the first quarter fiscal 2026. First Quarter Financial Highlights First quarter net sales of $436.0 million increased 7.3% over last year, Aerospace/Defense up 10.4% and Industrial up 5.5%. Gross margin of 44.8% for the first quarter of fiscal 2026 compared to 45.3% last year; Adjusted gross margin of 45.4% compared to 45.3% last year. First quarter net income attributable to common stockholders as a percentage of net sales of 15.7% vs 13.7% last year; Adjusted EBITDA as a percentage of net sales of 32.5% vs 33.0% last year. Free cash flow of $104.3 million vs $88.4 million last year; Free cash flow conversion of 152.3% vs 144.0% last year. Three Month Financial Highlights 'Our first quarter performance was solid with A&D and Industrial segment sales up 10.4% and 5.5%, respectively. Additionally, gross margin performance remained strong during the quarter due to our Industrial segment, highlighting the team's hard work in driving synergies between Dodge and our broader Industrial business, combined with expansion in Aerospace,' said Dr. Michael J. Hartnett, Chairman and Chief Executive Officer. First Quarter Results Net sales for the first quarter of fiscal 2026 were $436.0 million, an increase of 7.3% from $406.3 million in the first quarter of fiscal 2025. Net sales for the Industrial segment increased 5.5%, while net sales for the Aerospace/Defense segment increased 10.4%. Gross margin for the first quarter of fiscal 2026 was $195.2 million compared to $184.0 million for the same period last year. SG&A for the first quarter of fiscal 2026 was $73.9 million, an increase of $6.3 million from $67.6 million for the same period last year. As a percentage of net sales, SG&A was 16.9% for the first quarter of fiscal 2026 compared to 16.6% for the same period last year. Other operating expenses for the first quarter of fiscal 2026 totaled $20.2 million compared to $18.9 million for the same period last year. For the first quarter of fiscal 2026, other operating expenses included $17.9 million of amortization of intangible assets, $1.2 million of restructuring costs, $0.1 million of acquisition costs and $1.0 million of other expense items. For the first quarter of fiscal 2025, other operating expenses included $17.8 million of amortization of intangible assets and $1.1 million of other items. Operating income for the first quarter of fiscal 2026 was $101.1 million compared to $97.5 million for the same period last year. On an adjusted basis, operating income was $105.3 million for the first quarter of fiscal 2026 compared to $97.5 million for the same period last year. Refer to the tables below for details on the adjustments made to operating income to arrive at adjusted operating income. Interest expense, net, was $12.2 million for the first quarter of fiscal 2026 compared to $17.2 million for the same period last year. The decrease is primarily due to debt reduction efforts and comparatively lower interest rates. Other non-operating expense was $1.2 million for the first quarter of fiscal 2026 compared to $0.4 million for the same period last year. Income tax expense for the first quarter of fiscal 2026 was $19.2 million compared to $18.5 million for the same period last year. The effective income tax rate for the first quarter of fiscal 2026 was 21.9% compared to 23.1% for the same period last year. Net income for the first quarter of fiscal 2026 was $68.5 million compared to $61.4 million for the same period last year. On an adjusted basis, net income was $89.6 million for the first quarter of fiscal 2026 compared to $80.2 million for the same period last year. Refer to the tables below for details on the adjustments made to net income to arrive at adjusted net income. Net income attributable to common stockholders for the first quarter of fiscal 2026 was $68.5 million compared to $55.7 million for the same period last year. On an adjusted basis, net income attributable to common stockholders for the first quarter of fiscal 2026 was $89.6 million compared to $74.5 million for the same period last year. Diluted EPS attributable to common stockholders for the first quarter of fiscal 2026 was $2.17 compared to $1.90 for the same period last year. On an adjusted basis, diluted EPS attributable to common stockholders was $2.84 for the first quarter of fiscal 2026 compared to $2.54 for the same period last year. Refer to the tables below for details on the adjustments made to EPS attributable to common stockholders to arrive at the adjusted numbers above. Backlog as of June 28, 2025, was $1,017.3 million compared to $940.7 million as of March 29, 2025 and $825.8 million as of June 29, 2024. Outlook for the Second Quarter Fiscal 2026 The Company expects net sales to be approximately $445.0 million to $455.0 million in the second quarter of fiscal 2026, compared to $397.9 million in the prior year, for a growth rate of 11.8% to 14.4%. Gross margin is expected to be in the range of 44.0% to 44.25% and SG&A as a percentage of net sales is expected to be in the range of 17.0% to 17.25%. Live Webcast RBC Bearings Incorporated will host a webcast on Friday, August 1 st, 2025, at 11:00 a.m. ET to discuss the quarterly results. To access the webcast, go to the investor relations portion of the Company's website, and click on the webcast icon. If you do not have access to the Internet and wish to listen to the call, dial 877-407-4019 (international callers dial +1 201-689-8337) and provide conference ID # 13754909. Investors are advised to dial into the call at least ten minutes prior to the call to register. An audio replay of the call will be available from 2:00 p.m. ET on the day of the call and will remain available for two weeks following the call. The replay can be accessed by dialing 877-660-6853 (international callers dial +1 201-612-7415) and providing conference ID # 13754909. Non-GAAP Financial Measures In addition to disclosing results of operations that are determined in accordance with U.S. generally accepted accounting principles (GAAP), this press release also discloses non-GAAP results of operations that exclude certain items. These non-GAAP measures adjust for items that management believes are unusual, as well as other non-cash items including but not limited to depreciation, amortization, and equity-based incentive compensation. Management believes that the presentation of these non-GAAP measures provides useful information to investors regarding the Company's results of operations as these non-GAAP measures allow investors to better evaluate ongoing business performance. Investors should consider non-GAAP measures in addition to, not as a substitute for, financial measures prepared in accordance with GAAP. A reconciliation of the non-GAAP measures disclosed in this press release with the most comparable GAAP measures are included in the financial table attached to this press release. Free Cash Flow Conversion Free cash flow conversion measures our ability to convert operating profits into free cash flow and is calculated as free cash flow (cash provided by operating activities less capital expenditures) divided by net income. Adjusted Gross Margin and Adjusted Operating Income Adjusted gross margin excludes the impact of restructuring costs associated with the closing of a plant or significant adjustments to existing manufacturing processes or product lines. Adjusted operating income excludes acquisition expenses (including the impact of acquisition-related fair value adjustments in connection with purchase), restructuring and other similar charges, and other non-operational, non-cash or non-recurring losses. We believe that adjusted operating income is useful in assessing our financial performance by excluding items that are not indicative of our core operating performance or that may obscure trends useful in evaluating our continuing results of operations. Adjusted Net Income Attributable to Common Stockholders and Adjusted Earnings Per Share Attributable to Common Stockholders Adjusted net income attributable to common stockholders and adjusted earnings per share attributable to common stockholders (calculated on a diluted basis) exclude non-cash expenses for amortization related to acquired intangible assets, stock-based compensation, amortization of deferred finance fees, acquisition expenses (including the impact of acquisition-related fair value adjustments in connection with purchase), restructuring and other similar charges, significant adjustments to existing manufacturing processes or product lines, gains or losses on divestitures, discontinued operations, gains or losses on extinguishment of debt, and other non-operational, non-cash or non-recurring losses, net of their income tax impact. We believe that adjusted net income and adjusted earnings per share are useful in assessing our financial performance by excluding items that are not indicative of our core operating performance or that may obscure trends useful in evaluating our continuing results of operations. Adjusted EBITDA We use the term 'Adjusted EBITDA' to describe net income adjusted for the items summarized in the 'Reconciliation of GAAP to Non-GAAP Financial Measures' table below. Adjusted EBITDA is intended to show our unleveraged, pre-tax operating results and therefore reflects our financial performance based on operational factors, excluding non-operational, non-cash or non-recurring losses or gains. In view of our debt level, Adjusted EBITDA aids our investors in understanding our compliance with our debt covenants. Management and various investors use the ratio of total debt less cash to Adjusted EBITDA, or 'net debt leverage,' as a measure of our financial strength and ability to incur incremental indebtedness when making investment decisions and evaluating us against peers. Lastly, management and various investors use the ratio of the change in Adjusted EBITDA divided by the change in net sales (referred to as 'incremental margin' in the case of an increase in net sales or 'decremental margin' in the case of a decrease in net sales) as an additional measure of our financial performance and some investors utilize it when making investment decisions and evaluating us against peers. Adjusted EBITDA is not a presentation made in accordance with GAAP, and our definition of Adjusted EBITDA may vary from the definition used by others in our industry. Adjusted EBITDA should not be considered as an alternative to net income, income from operations, or any other performance measures derived in accordance with GAAP. Adjusted EBITDA has important limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for analysis of our results as reported under GAAP. For example, Adjusted EBITDA does not reflect (a) our capital expenditures, future requirements for capital expenditures or contractual commitments; (b) changes in, or cash requirements for, our working capital needs; (c) the significant interest expenses, or the cash requirements necessary to service interest or principal payments, on our debt; (d) tax payments that represent a reduction in cash available to us; (e) any cash requirements for the assets being depreciated and amortized that may have to be replaced in the future; or (f) the impact of earnings or charges resulting from matters that we and the lenders under our credit agreement may not consider indicative of our ongoing operations. In particular, our definition of Adjusted EBITDA adds back certain non-cash, non-operating or non-recurring charges that are deducted in calculating net income, even though these are expenses that may recur or vary greatly, are difficult to predict, and can represent the effect of long-term strategies as opposed to short-term results. In addition, certain of these expenses can represent the reduction of cash that could be used for other corporate purposes. Further, although not included in the calculation of Adjusted EBITDA below, the measure may at times (i) include estimated cost savings and operating synergies related to operational changes ranging from acquisitions to dispositions to restructurings and/or (ii) exclude one-time transition expenditures that we anticipate we will need to incur to realize cost savings before such savings have occurred. About RBC Bearings RBC Bearings Incorporated is an international manufacturer and marketer of highly engineered precision bearings, components and essential systems. Founded in 1919, the Company is primarily focused on producing highly technical or regulated bearing products and components requiring sophisticated design, testing, and manufacturing capabilities for the diversified industrial, aerospace and defense markets. The Company is headquartered in Oxford, Connecticut. Safe Harbor for Forward Looking Statements Certain statements in this press release contain 'forward-looking statements.' All statements other than statements of historical fact are 'forward-looking statements' for purposes of federal and state securities laws, including the following: the section of this press release entitled 'Outlook'; any projections of earnings, revenue or other financial items relating to the Company, any statement of the plans, strategies and objectives of management for future operations; any statements concerning proposed future growth rates in the markets we serve; any statements of belief; any characterization of and the Company's ability to control contingent liabilities; anticipated trends in the Company's businesses; and any statements of assumptions underlying any of the foregoing. Forward-looking statements may include the words 'may,' 'would,' 'estimate,' 'intend,' 'continue,' 'believe,' 'expect,' 'anticipate,' and other similar words. Although the Company believes that the expectations reflected in any forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any of our forward-looking statements. Our future financial condition and results of operations, as well as any forward-looking statements, are subject to change and to inherent risks and uncertainties beyond the control of the Company. These risks and uncertainties include, but are not limited to, risks and uncertainties relating to general economic conditions, geopolitical factors, future levels of aerospace/defense and industrial market activity, future financial performance, our use of information technology systems, our disclosure controls and procedures and internal control over financial reporting, our debt level, our level of goodwill, market acceptance of new or enhanced versions of the Company's products, the pricing of raw materials, changes in the competitive environments in which the Company's businesses operate, increases in interest rates, the Company's ability to acquire and integrate complementary businesses, and risks and uncertainties listed or disclosed in our reports filed with the Securities and Exchange Commission, including, without limitation, the risks identified under the heading 'Risk Factors' set forth in the Company's most recent Annual Report on Form 10-K filed with the SEC. The Company does not intend, and undertakes no obligation, to update or alter any forward-looking statements.
CNBC
an hour ago
- CNBC
Bank of America raises Boeing price target following aerospace giant's solid earnings print
Boeing's turnaround is gaining altitude, according to Bank of America. In a Friday note, the bank reiterated its buy rating on the aerospace and defense stock and raised its price objective to $270 per share from $260. The new forecast implies shares can rise 21% from Thursday's close. Boeing's second-quarter results , released on Tuesday, showed that the company raked in revenue of $22.75 billion, topping expectations. Its adjusted loss of $1.24 per share was also less than forecast. Boeing delivered 150 airplanes in the second quarter, its most since 2018. This was a bright spot for analysts who have been looking for signs of improvement at the aerospace giant which has been plagued by a series of crises in recent years. "Boeing reported one of its cleanest quarters in recent years, beating EPS and Free Cash Flow estimates, as well as laying out a realistic view for what's ahead. Boeing Defense (BDS) reported no negative EAC adjustments, Global Services (BGS) continues to operate smoothly, and Commercial Airplanes (BCA) is improving," Bank of America's Ronald Epstein said. Despite its solid print, Boeing ended Tuesday with a 4% decline. Epstein attributed these losses to statements made by Boeing CEO Kelly Ortberg. "We see the sell off as a reaction to CEO Kelly Ortberg's comments BA will soon request the 737 production cap be increased. In our discussions with investors, it seems many were expecting a much more aggressive 737 production rate increase by 3Q," he wrote. "Despite the noise, we appreciate the discipline and see further upside ahead." Epstein pointed to Boeing's continued progress — specifically, its production stabilization and operational performance improvement. This has been reflected by increased production of Boeing's 737 and 787 aircrafts. "BA is making progress on meeting KPI metrics set by the FAA and we see the path to lifting the 737-production rate cap becoming clearer," Epstein added. "While the market seems to have anticipated an accelerate timeline, we still believe the most likely scenario for the rate cap lift will be in the fourth quarter." The analyst also noted that Boeing has recently emerged as a preferred trade tool for President Donald Trump. Epstein predicts orders will increase as Trump "continues working through deals globally." BA YTD mountain BA YTD chart Shares of Boeing have surged 25% this year.
