Total backlog increased to $48.4 billion from $48.1 billion at the end of 2023. New contract awards during the quarter totaled $3.1 billion, including an award for the maintenance and overhaul of USS Boise (SSN 764).

The company expects capital expenditures to increase from the past few years due to investments to expand shipbuilding capacity. Discretionary capital expenditures are expected to be approximately 2.5% to 3.5% of annual revenues.

Operating income increased by $13 million, or 9%, compared to the same period in 2023. This increase indicates effective management of revenues and costs.

The Company repurchased 223,329 shares of common stock in the open market pursuant to its repurchase program, indicating management's confidence in the company's value.

The company acknowledges ongoing uncertainty in the economy, industry, and company, including challenges for customers and suppliers, labor shortages, supply chain challenges, and inflation.

The company notes that inflationary conditions continue and that cost assumptions may not be sufficient to cover all cost escalation, potentially impacting the availability of resources to execute contracts.

Final defense appropriations broadly supported shipbuilding programs, including funding for two Arleigh Burke class (DDG 51) destroyers, two Virginia class (SSN 774) attack submarines, and one Columbia class (SSBN 826) ballistic submarine.

The Company's board of directors authorized an increase in the stock repurchase program from $3.2 billion to $3.8 billion and an extension of the term of the program to December 31, 2028, indicating a commitment to returning value to shareholders.

The global geopolitical and economic environment continues to be impacted by uncertainty, heightened geopolitical tensions, and instability. Geopolitical relationships continue to change.