Aerojet Rocketdyne delivered its highest revenue quarter on record with a 2.0 book-to-bill.
Free cash flow was $574 million, driven by increased operating income and improved working capital performance.
L3Harris reported record $8.3 billion in orders for Q2 2025, resulting in a 1.5 book-to-bill ratio.
Non-GAAP EPS was $2.78, up 16% year-over-year; pension-adjusted EPS was $2.42, up 22% year-over-year.
Revenue was $5.4 billion, reflecting strong organic growth of 6%.
Segment operating margin was 15.9%, up 30 basis points, marking the seventh consecutive quarter of year-over-year margin expansion.
Segment results included CS revenue up 2% with 24.4% margin, IMS revenue up 6% organically with 13.2% margin, SAS revenue up 7% organically with 12.3% margin, and Aerojet Rocketdyne with 12% organic growth and 13.3% margin.
Adjusted gross margin was 25.5%, up 190 basis points sequentially and at the high end of guidance, despite a gross margin decline to 22.9% due to higher wholesale closings and costs.
Backlog at quarter end was 808 homes valued at $322.5 million, with 11.3% related to wholesale contracts.
Cancellation rate increased to 32.7% from 22.2% last year, influenced by slower sales pace and a large wholesale contract cancellation.
Debt outstanding was $1.7 billion with a debt-to-capital ratio of 45.8%, and liquidity totaled $322.6 million including cash and credit facility availability.
Land portfolio decreased 7.4% year-over-year to 64,756 lots, with a focus on rebalancing inventory and moderating home starts to align with sales pace.
LGI Homes delivered 1,323 homes in Q2 2025 with an average sales price of $365,000, generating revenue of $484 million, a 19.8% year-over-year decrease driven by a 20.1% decline in home closings.
Pretax net income margin was 8.7%, with earnings per share of $1.36 for the quarter.
SG&A expenses totaled $71 million or 14.7% of revenue, with selling expenses decreasing due to more efficient advertising spend.
Dafinchi