Leidos Holdings, Inc. (LDOS) Earnings Call Transcript & Summary

Okay. I think we'll go ahead and get started. Good morning. I'm Stuart Davis, I run Investor Relations here at Leidos. Welcome to everybody in the room here in Huntsville. Those joining via webcast to the Dynetics investor site visit. So today's focus is all about Dynetics, which is one of the most interesting pieces of the Leidos portfolio. So of course, we're going to be making some forward-looking statements based on conditions as we see them today. Obviously, there are some risks and uncertainties involved in that proposition. You can see them here on this slide. In addition, we'll refer to some non-GAAP metrics, give you a fuller picture of the operating performance of Leidos. The reconciliation to GAAP is included with your slide deck. Okay. So we've got a really packed agenda for you here today. Big picture, we're going to have about 90 minutes of briefings, then we will embark on a series of 3 tours that show off the diversity and complexity of what we do here at Dynetics. Diving into the briefings. Roger Krone will kick us off and put Dynetics within the context of the broader Leidos. Then we'll have Steve Cook, who runs the Dynetics group, 3 of his direct reports do a deep dive on the Dynetics business. Now I want to say that the only portion of today that is going to be webcast is the briefing portion. So those listening on the web, if you have questions, go ahead and send them to me directly, and I'll respond and answer your questions as soon as I can. Without further ado, I'd like to welcome Roger Krone, Chairman and CEO of Leidos.

Hey, good morning. Thanks, everyone, who could make dinner. We thought that was a lot of fun. I always enjoy from new leaders out and about and you all get it. Chris and I and Stuart, we're kind of used to [Technical Difficulty] kind of a dinner and ice for some of the other folks. They'll be able to interact with you and I know you will enjoy interacting with [Technical Difficulty] to see growth messaging just up down. So and it's -- by the way it's a great day in Huntsville, 1st of December, I believe, going to happen to 2022 and by that standpoint, we still have a lot of work to do in 2022 to meet our year-end. We're thinking, how do we get to [Technical Difficulty] so much has been going on and some of the wins we've had, some of the work we've done on execution. It's really been exciting. We thought you could come to Huntsville and see this part of the company. When we talk about the product portfolio, which is about a company and some of the program you've got and talking on the call with New York or Baltimore, Chicago and we try to describe like it is I just don't think [Technical Difficulty] need to look at the mid cities facility where we [Technical Difficulty]. You get it over to Chase to see this big facility that we have leased that will grow as the [Technical Difficulty] and hopefully you'll walk away and better understand our portfolio of life and thanks, and the mission, vision and values of the company [Technical Difficulty] yesterday before, we have essentially used this chart every time we're with you. By the way, we use this chart as the chart and pretty much all of our [Technical Difficulty] and it really remains almost unchanged since we rewrote it at the time of the [Technical Difficulty]. So it has to find what we're about and what [Technical Difficulty] religiously held and therefore, we hope, we've been very consistent in our messaging and our [Technical Difficulty] safer, healthier and more efficient [Technical Difficulty] find ourselves. We used to say Information Technology. We buy IS&GS, they were very IT folks. But as you'll see today, we've moved so far that we topped with information off of technology. This technology, engineering and science, and of course science for us all the way back to Bob Beyster, science applications that he founded in [Technical Difficulty]. The vision, which is usually where I get most of the questions. I help understand the statement of corporate [Technical Difficulty]. It's a different kind of portfolio than a lot of our peers, much broader than our peers. But we're like, saying, well we really have a technology company trying to solve big problems for our [Technical Difficulty] and our customers are probably government. And we do it through [Technical Difficulty] so that middle section under vision is [Technical Difficulty] speaks to [Technical Difficulty] we ask Maureen to come down. Some of you [Technical Difficulty] with Maureen. Maureen is our HRO, so I have people question ready to talk about what is going on with people, hiring has been and our ability to [Technical Difficulty] which has actually been very strong. So we'll have another really strong year [Technical Difficulty] that at dinner. Our problem is not [Technical Difficulty] Our problem is COVID, and these people job changing and things maybe a little bit on the tour love some of the M&A. Those that come [Technical Difficulty]. Sean came in the Dynetics really energized and help build our [Technical Difficulty] and that last part of the vision statement is really our role in the greater world. ESG and your words, which really fits well with us. We were [Technical Difficulty] shipyards and [Technical Difficulty] carbon footprint is great and we put ESG out on our website. I had a question last night about culture. So we talked a little bit about culture and when we met in 2016 with the Lockheed team, talking about should we have values. What does it even mean for us, leadership team to pick values? As we had all come from big companies, there are always values like when we started it [Technical Difficulty] we never quite understood and now we are in a leadership position to pick a set of values. So let's pick a set of values that define the company that we would want to [Technical Difficulty] if we had a choice. And a lot of time, we actually spend about [Technical Difficulty] picking these values. And they -- we believe this set of 6 values helps to [Technical Difficulty]. Then the other question I got, well, then how do you drive that culture? I think I know, but maybe I don't know. I mean, it really starts is that [Technical Difficulty] and it's what you value and what [Technical Difficulty] be collaborative. That's really defines who we are. Again, I think it's really served us well if you've looked ahead got sort of a scorecard at the end of my presentation on what the last 8 year look like. Anyway, that's such that's what it's all about. Our strategic focus and again, this chart, if you -- [Technical Difficulty] this chart hasn't changed much. I think we pulled essentially out of [Technical Difficulty] and we want to be differentiated in our market [Technical Difficulty]. We can apply technology FAA business [Technical Difficulty] infrastructure. If we can make experience through an airport touch list with technology, we think that's a great thing and if we can apply technology [Technical Difficulty] we think that not all of our peers have thought about that. It is interesting that some of thing more is that [Technical Difficulty] years ago. Some of our peers are now being [Technical Difficulty] made these moves [Technical Difficulty]. As many of you know, when we did the Reverse Morris Trust for IS&GS, one of the things we said is we were about $5 billion on a run rate at that time, maybe $6 billion. And we said we thought to be a leader and a survivor in our market had to have a certain size, scale, if you will. It's interesting, some of our competitors came out and said, well, we don't really need deals not that important. We kind of went wow, okay? We think it is because we just got an RFI last week. There were certain requirements to be a respondent in that RFI. This is [Technical Difficulty] because of our size and scale. You have to have past performance doing this kind of an integration above $1 billion. You can't bid. We have those other company specifics, I think it [Technical Difficulty]. So when the RFP comes out, there will only be one of the -- they're not an [Technical Difficulty] because of what we scale. And then the other part of that we've talked this when we did the IS&GS, we spend more IRAD. We have a stronger talent acquisition and talent development organization of our scale, and that gives us an advantage when we go. It gives us [Technical Difficulty] programs positioning. And we [Technical Difficulty] you're in these segments. And is there really connectiveness, but hearing what you're doing with this and we believe there is. We have defined capabilities, ground technology. And then we go after faster swimlane, the growing market base. And it allows us to better ride through the turbulence and [Technical Difficulty] when Biden got elected, we thought defense would be down and health care would be up. [Technical Difficulty] health care is up and so is defense. And as a portfolio, we were really, really positioned to grow in our 3 reporting segments and operating [Technical Difficulty]. And then people -- I mean we'll talk about. And you will see some hardware and you'll see some factories, and we're really excited about that. But there's 45, almost [Technical Difficulty] at Leidos coming to work every day and are -- we do a pulse survey, we do an employee survey. We have the highest scores we've ever had through our [Technical Difficulty] this great team. But if people love coming to work, they get to do exciting work, treated with fact and they have seated [Technical Difficulty]. And it really is a flat organization like [Technical Difficulty] and we get to work on really interest. And so we continue to attract just this aging group, senior leaders, people executing [Technical Difficulty] that you'll get to meet a lot more of today, maybe on [Technical Difficulty]. All right. We're here really to talk about Dynetics and what it was and what their journey has been like. And so for those of you who have been following us, we did a briefing in December of '19 when we announced the deal [Technical Difficulty] January. And we -- I pulled a couple of slides because we believe in commitment and [Technical Difficulty]. This is a slide we use to describe why we thought Dynetics was [Technical Difficulty], but Dynetics was at the time. And Huntsville, Alabama, long, long history here. By the way, we had done a lot of over and under [Technical Difficulty] they were team. Some of our [Technical Difficulty] we knew a lot of the people. [Technical Difficulty]. And so we had this comfort with each other and as you know, Dynetics was owned they had capitalization issues favors all to team up with industry, really to be chosen by Dynetics. And Steve is going to talk a little bit about Dynetics from the other side. I'll talk about why we were so excited about Dynetics on this chart -- in his chart. Then I've asked Steve to kind of talk about what was going on in '19 at the [Technical Difficulty] Dynetics leadership. And they looked at the landscape and why did they choose with Leidos. But at the time of the acquisition, we looked at Dynetics really in 4 areas, the hypersonic and space solutions, remember Mike Griffin, you saw that, take was really strong and hypersonics and supersonics viewed that as a really growing market and this is a great entree to have a major position in [Technical Difficulty]. The intel and electronic warfare, not a lot that we will pay in that, but still a real area. The unmanned and advanced engineering, solutions in and prototyping. And then the weapons technology, and we're not going to -- I think we're going to do okay. But this has expanded, if you will. Our portfolio actually do make some munitions, which is actually converted. And we found what our assumptions basically true when closed and actually started to interact at Dynetics. How did we organize? So we had this discussion [Technical Difficulty] so we report segments. Civil Defense Solution, health and Dynetics is under the Defense Solutions. Our parlance, it is a [Technical Difficulty] so segments in our defense segment [Technical Difficulty] which is this business, plus the San Diego, Boston all at Leidos Innovation Center or bank, then we have bought [Technical Difficulty] that does machining on action system. [Technical Difficulty]. And that set us up to win the [Technical Difficulty] which is part of our strategy and how things look. So I wanted to touch on this chart. So this is I think a promise or a commitment made to you all in December of '19. Why did we think we could create value in this transaction? We saw 3 major strategic benefits and [Technical Difficulty]. They had a significant presence, areas that we thought would grow and sometimes you have the resources and the time to spend R&D and develop the capability and [Technical Difficulty] there are some markets that are moving so fast that the best way to get [Technical Difficulty] And clearly, hypersonics, some of the work we have in space and some of the weapons [Technical Difficulty] but we saw in the product profile that we're [Technical Difficulty]. We loved their rapid manufacturing and [Technical Difficulty] and the manufacturing, if you will, a center of excellence in production, test and assembly. And you'll see a lot of that. We had -- we said we're very, very asset light. We do some assembly. We have the [Technical Difficulty] just felt needed a little bit more product mix and a little bit hardware in our portfolio. As said, we have about 10% product today. Think about a goal [Technical Difficulty] and maybe if we double that, that would help our portfolio. The products tend to be longer duration [Technical Difficulty] and to have a higher margin and to be stickier from IP standpoint. And we saw here really the ability to build a manufacturing center of excellence. And then they brought us access to customers that either deepened our access to customers. They brought new customers. So we haven't had [Technical Difficulty. So that was sort of our thesis. And so what I wanted to do is to sort of rate our paper. We're almost 2 years since we closed on the acquisition. So how we're doing in the growth markets, we really doubled down on [Technical Difficulty]. You're going to see big cities facility that when we closed was potentially aware. We put collectively put significant amount of capital in that facility to create a secure classified -- we're not going to be classified today, production facility with excess capacity to build hypersonic [Technical Difficulty]. And since then, we've also won the [Technical Difficulty]. Talk a little bit about that later on about how those 2 things go together. We enhanced our sensor design and production capabilities. We really advanced the ability to build prototypes, and we'll [Technical Difficulty] some of the work done in the electronics area. We now have a capability that we can knock out a prototype in a month. And that's really important to think about how DoD is buying and how agile they want to be. And then we're excited about some of the technologies that came with that. We're not going to stop buying and see if pick high energy laser. But we're in the process of developing and demonstrating first tactical laser system. So we think we get a checkmark there. In the agile production capability, we have made a decision to create a manufacturing center of excellence here, which means we are moving some of our production from around the country to the facility here. We have a significant gene shop. We have the ability to do classified and unclassified production here. We think, eventually, we'll move [Technical Difficulty] program here. We have -- I'm not going to see it today, have largest electron being Boulder in North America in this facility [Technical Difficulty]. We fabricate the large thrust-bearing for the big class submarine. So we have a significant Navy contract to build a bearing is almost the size of the stage. So we have a vacuum chamber. We're going to do EV welding of that main bearing housing for the Navy here in Huntsville, which has expanded our Navy presence and the discussions that we have with the Navy. And then the other capability that we've got, which maybe initially you wouldn't think about, but we have the test equipment, shock and vibe and environmental tests, some of which you'll see on the tour, which we didn't have. So not only can we design rapid prototype, but we can test the systems that will in the capability we have here at Huntsville. And then on key customers, and every day, especially when we win programs, I think about how lucky we are and we had a conversation last night, and I said, how do you win? And why are you winning at the rate that you're winning? And we were talking about even this morning. I'm not sure I know why we're successful. But whatever we're doing, we're doing it right, we keep doing it. And it's the relationship. It's the people that we have. It's the capability we bring to the market, and it's the relationship we have with customers and the confidence that they have in us to deliver on our commitment. And Dynetics brought this customer relation to us in spades in some existing customers and new customers within existing customers like something called [ Richto ] and brought new customers as well. And you can see the list there. The work that we've done with [ Richto ] on the epic programs in hypersonics, expanded our Navy presence to space development agency, and NASA, adding to the work that we did in DIA and DARPA. And Steve will go over the numbers, but you always wonder what -- how do you weigh what you've done, all right? And so we said, well, what -- how many programs, how much business have we won in the last 2 years that we would not have won had we not done the acquisition of Dynetics? And so we went through and we ended up the number, and it's $1.6 billion in our backlog today of programs that we couldn't have bid, had we not gotten together. And by the way, the other side of that from Steve's is there's $1.6 billion of business that Steve is now executing part of that Dynetics would not have won had they not merged with Leidos as well. So I think that's a great metric around the success story. And then my last chart, I just can't help myself, right, is -- so going back, if you will, to the big Leidos story. So what's the story been like? This is the last 8.5 years or so of what's been going on at Leidos. And we as a leadership team, we're pretty proud of what we have built. We have built scale and continue to grow. Now we were very, very fortunate to be able to get the IS&GS reverse mortgage trust done. And that really fueled growth. And then we have made some very strategic acquisitions, and we show Dynetics there. As you know, we've also done a couple of others, Gibson Cox. We bought the ProVision system from L3. And so we have, if you will, fueled our strategy by winning these large multibillion-dollar programs like DES and GSMO and Navy NextGen and some of the ones we're going to talk about here today. But we've also added to our growth by making very, very selective strategic acquisitions. And as such, we've run a 12% CAGR in revenue over the past 8 years at 12% CAGR on non-GAAP diluted EPS. And now our challenge is to keep that going. And we have plans to keep that going in the future. But this has been a great experience and we on our commitment, both in our overall strategy and the commitment we made relative to Dynetics when we bought. So Great. With that, I want to turn the podium over to Steve Cook and let Steve talk about the journey that he has been on and let some of his great leaders of Dynetics brief you on some of the programs. Steve, over to you. [Presentation]

Good morning. Great to have everybody here this morning. And I'll tell you, I can't imagine a better job to have than I have to lead this wonderful team taking on the challenges to help our nation being a part of a wonderful enterprise such as Leidos is an incredible blessing. And I feel that way each and every day. It doesn't get done without our incredible employees around the world. But it first takes our leadership team to put that together. I first want to introduce our leadership team. You'll hear from several of these today, and they're all here in the room, except for one. First off, Paul Engola. Paul is -- Paul, raise your hand. Paul is my deputy, and he also runs our national security space operation. Paul is a long time Leidos and before that Lockheed Martin employee, long history in national security space business. Jonathan Pettus. Jonathan, you'll hear from him in just a few minutes. Jonathan and I have actually worked together for 3 decades. He's put up with me that long. We both started in NASA Marshall Space Flight Center about 30 years ago together. And Jonathan joined us about 4 years ago. He runs our Aerospace, Defense and Civil operation. Larry Barisciano recently joined us, a long-term Leidos and Lockheed Martin employee. He was recently running the GSM-O II program, which obviously is taking care of the Defense Information Network. Obviously, a critical program for us. Prior to that, he's got a lot of background in various launcher programs. I'm really glad to have Larry just joined our team about a month ago. Dr. Artie Mabbett. Artie is not here today. Artie has a long history with the Navy, DARPA. And then with Raytheon, he ran their hypersonic programs there. And now he runs our Leidos Innovation Center, which is really where our core technologies begin in our research and our science. If you go back to the core of what was Dr. Beyster's SAIC in 1969, it really resides largely in the LInC. So without this kind of a team, the kind of things you're going to see today amongst our folks about really can't happen. And I'll tell you, as Roger said, until you get out and see it, it's kind of hard to imagine what we do. So we'll get through the charts and then we want to get you out and touring. A little bit about our people because, again, we are a people company. You'll see a lot of great again, facilities and equipment, but without the people to operate that and the passion and the dedication to the mission that our folks have it, doesn't get done. At the acquisition, we were about 2,300 employees. Today, we're 4,100 employees, right? So we've grown there. About 31% of our team has advanced degrees, that's masters and up. We've got about 10% military vets within the group. A lot of cleared employees. The nature of our work, one of our divisions is 85% special access programs, just as an example, in the electronic warfare business. And then we're also very committed to the community. We've been a part of the Huntsville community now since 1974. The Dynetics name is very well understood in this community and other communities around the United States as well. And we give a lot of our time and our employees' time and our resources to local charities. In fact, Leidos just largely was one of the core sponsors of the new cyber high school. One of the -- I think, the first cyber and engineering high school in the United States that's right here in Huntsville, Alabama, which is great. And we are a national group. So about 2,500 of that 4,100 resides here in Huntsville. Our other large sites are obviously in the National Capital Region in Boston out in San Diego. Those are the original link groups. We're getting a great presence along the front range in Colorado with Davis in Denver, Spire and Colorado Springs. That's the new companies that we purchased a year ago. Albuquerque, New Mexico, a long-time relationship with the Directed Energy Directorate there at AFRL. We have a personnel in Fort Sill because that's one of our key customers. A lot of our systems you'll see today will end up going through the school house and going through the training there at Sill. And then obviously, we've got a team down at Eglin Air Force Base and then a large group of our folks that do work for NASIC and AFRL in Dayton, Ohio. So really a great mix, and we could pull on. And we've now got network set up between these sites at classified levels. So we can -- and that's important. COVID has taught us that lesson. We need to be able to have employees at different locations, even on classified programs. And so that's one of the things that we've been able to put in place as a part of Leidos that frankly we didn't have prior to that acquisition. You think about why -- what makes us unique and why we're uniquely positioned, if you will, for great power competition. If you think about there on the right-hand side of the screen, so with this return to great power competition, when I got in this business in 1989, right after that what happened? Wall fell, we move into how we're going to work with the Russians and then the tariff hike comes. And now in the last 5 years, we've seen the resurgence of Russia, and we've seen an emergence of China. And not only is it near peer, but is a peer threat. And if we think about what's needed there, those adversary capabilities really -- this is an even larger challenge than we faced in the cold war because we've got -- now we've got competitor capabilities, how they play into this. We've got gaps in U.S. capabilities because our focus was largely on terrified for the last 20 years. And then how do we put all of that together on the left-hand side with our government and customer needs, right? They need things to be able to address those needs, they need things faster. They need innovative ideas. They need to get the cost down on these systems. They need to be able to get systems in the field fast. Ukraine is showing that, right? They're going through missiles and systems at a very, very fast rate and it requires responsiveness and collaboration across many. So what we bring is the agility that many other large OEM primes may not have that we can bring. We have the scale, but we have the agility. And then we have the ability -- the depth that small businesses don't have. So we're really kind of building here a new culture to take on these challenges that our country is facing. Now this is a chart actually that we showed to our employees the same day Roger showed you all why Leidos' purchasing Dynetics. And this is the exact words out of that chart. And this is really borne a lot of fruit. I will tell you that early on, Dave King, who was my predecessor here and Dave and I worked together for many, many years. When we sat down our first meeting with Roger and Jim Carlini, our CTO, we walked away from that and said, what a great cultural fit this would be for our company this happen. And these are really the kind of the culture of innovation that Leidos has had that fit really well with Dynetics, 50-year history of focusing on science and technology innovation, keeping that ESOP culture where the employees are the center of what we do, even though we're not an ESOP anymore, really working with closely with our customers at the tip of the spear to work on those really incredible challenges while having a good balance with our employees and our shareholders, committed to growing in the locations that we were at the time and then a long history of moving from R&D to programs of record. That's why we told employees for years ago actually, 3 years ago on the 17th of this month, that this acquisition made a lot of sense and it has borne fruit and continues to bear even more fruit as we go forward. I'll talk about that in the upcoming slides. I really like to think about this is we're grafting DNA on to each other, right? If you think about what's come together here, whether it's SAIC, Dynetics, the Lockheed Martin, IS&GS or the L3 SD&A, we're bringing the best of those cultures together, right, and grafting that DNA on to each other, whether that be our ability to do these rapid prototyping, bringing systems engineering rigor to the table, agility, the speed, the affordability that we need for these programs. You know the entrepreneurial mindset willing to take risk, willing to lean forward and bring new ideas and having a deep pool of resources. That's really key. And so those are things that we're building. So we're really creating a new aerospace and defense company by grafting these things on to each other, whether it be a subsystem such as the common hypersonic glide body, which is part of a larger conventional prop strike program or a full system such as the small glide munition, which you'll see. You'll see both of those today. And so our aim in the long term is to become a thicker integrator, add more capability across that life cycle. Now that we're partnered up, we have the Leidos Innovation Center, all the way to our ability to do operations and logistics with the defense group. We now fit within the larger Leidos spear to be able to deliver more to our customers, being able to do it in a much more rapid fashion. We can't operate in the classic 15-year weapon system cycle under this great power competition. That no longer works. And so this is the opportunity that we have, and we're at the right time with the right amount of resources to get it done. The key focus areas we'll talk about today, if we think about Dynetics as a pyramid, right, kind of the base of that pyramid Tim Barton will talk about this a little bit is our advanced technologies. These are our foundational cross-cutting innovation that really support a wide variety of programs as we go forward. And you'll see those in detail as we move into this. On top of that, we call it our force protection model, whether that be indirect virus protection with a higher energy laser or a kinetic solution called Enduring or advanced radar or wide-area surveillance programs, things of that nature, how do we protect our forces wherever they're located around the globe. So this is getting a lot of attention with what's happening in Ukraine and obviously in the INDOPACOM region. And then on top of that, hypersonics. This is a tough challenge, right? How do we put systems in the field, have both offensive and defensive systems to address the challenges our country faces today. Now there is -- I've been in this business in the hypersonics business since the mid-1990s, when I was an SI help run that portfolio. And starting in about 2003, there was a major dip because we didn't see any point. We're moving to the tariff. You didn't see this happening. What happened was the Russians researched, the Chinese took a lot of our technology and now applied it and weaponized it. And now we're behind. And so we're having to hustle to develop a missile defense solution as well as an offensive solution. And I cannot look at this as kind of akin to the 1950s where you had a missile gap. Now we're not going to meet this head on missile for missile. It won't work to do that. And we'll talk about how all that comes together. But that really is the core of what we'll talk about when we kind of bucket the work that we do. When we look at our addressable market, actually, our CAGR and our market is actually up a little bit from last year. We are projecting about a 4% growth. Now we're projecting about a 6% growth. You can see the areas that we're working in there from space systems and solutions, engineering services, tactical weapons, cyber physical systems, sensors, which includes a lot of our ground sensors and our electronic warfare and wide area surveillance systems, airborne autonomy, integrated force protection and hypersonics and its space counterpart and national security space. We see some great drivers here. We see the growth vectors really being, how do we get all of these things put together and get solutions in the field quickly. Right now, the customer is saying, I don't want the elegant solution. I need the 80% solution, and I need it in a couple of years, whether that be a wide field of view sensor, 2 years from start, whether that be the first hypersonic glide body in the field in 4 years. Those are the kind of speeds that we're having to move at. And to do that, you've got to have a lot of customer intimacy. They got to be very involved. You got to have a lot of customer transparency and trust to be able to do that, and we don't take that lightly. What sets us apart? Number one, our customer intimacy. That has been a foundation. That's been a foundation of Leidos from the very beginning as well, and it was a foundation of Dynetics since 1974, having those kind of relationships, understanding what our customers need. When I got here in 2009, our mix of programs were about 90% engineering, high-end engineering services and about 10% of what I call product. We have to put something out the door. That's flipped over today. Today, we are about 80% delivering things out the door and the rest in services. Our speed and our agility is obviously critical, particularly in the great power competition flight, and it really sets us apart when we think about the resources we have. Somebody asked me then what sets us apart? We can move fast, and we love the hard problems. So we talk about the valley of death, right? And I gave a little talk about a year ago that we like to hug the cactus in the valley of death, right? Because you got to be willing to take on those hard problems and you have to be able to embrace it. And they are trying to get the first 300-kilowatt laser mobile in the field in a couple of years is really, really hard. Having the first hypersonic defense system in space in 24 months, that's really, really hard. That's the kind of problems that we like, and we embrace it and we have a culture here within Leidos that allows us to do that. And to do that, you have to have the best employees, and we have to focus on excellence and innovation in everything we do. That's not just in the engineering side. That goes to a county HR, program management, chief engineering. All of those other functions have to all work seamlessly together to get that done, and we have to partner across the corporation and with other companies if we're going to be successful. And this is kind of the chart Roger hit on earlier, and I love this because I sat down and thought about what have we won together that separately we wouldn't have won, right? And these are just some examples of that. We won this SDA space development agency for the space force, wide field of view, tranche 1. That's going to be the first operational hypersonic missile warning track capability that the U.S. will have. We just won that. That's an exciting win, right? We are a sub to Northrop Grumman on that program. We supply the sensor and they're the integrator for that. We won the NASA human lander system round 1. Now round 1 we won. Round 2, we lost. Us and Blue Origin lost to SpaceX. But guess what? Round 3, which is NASA has continued to fund us over the last 18 months, leading up to Round 4, our proposal will go in for the next round of human landers next week, and we're incredibly excited about that. A new program that Jonathan will talk about called MACH Test Bed. This is how do I start driving the cost of hypersonic systems down so the demand signal can get back up. Either that is we have to be able to test regularly. We have to bring new capabilities, new systems, and we got to get on a faster case on the order of once a month. We embrace that. We just more recently won that program as a prime. Companion program to the common hypersonic glide body is the sheet that goes around that glide body, made of carbon, carbon. Let's talk about that when we go over to the national hypersonic glide body facility in a little bit. We won that contract. That was a big contract for us to win. That's $0.5 billion. So now tip to tail, we are responsible for that entire glide body and then obviously, the Enduring Indirect Fires Protection Capability prototype contract. And there are some other things as well. There's another hypersonic contract we'll announce later on this month. We can't talk about it in detail, but it opens up a new avenue in hypersonics that we haven't been into before. When we add those up, these are things that neither one of us could have won without each other. That's $1.6 billion since the acquisition in January of 2020. These are really exciting times. We've got an incredible team that I look forward to you spending some more time with today. I know we all are introduced that we loved our time at dinner last night. But with that, I want to turn it over to Dr. Tim Barton, who will kick us off with an overview of Advanced Technologies. [Presentation]

Good morning. What I'm going to do now is put some of our advanced technologies in the context of how they support our national security challenges like Roger and Steve talked about, but I'm also going to try to give you a flavor of how we move fast with agilities, as Steve discussed. Pretty regularly, the Defense Department and the intelligence community published their priorities, right, for what they need. One of our secrets is to stay ahead of that, right, to manage that technology and make sure we had technical -- technically discriminating capabilities in those areas that support their missions. You can see on the left there, we talked a lot about hypersonics, we talked a lot about force protection, directed energy, the types of applications you're going to hear a lot more about that, things that they need right now right, into the field. Effective adoption, things like autonomy and AI and machine learning and reinforcement learning, you're going to hear more about that on some of the demonstrations later today. And things done in the emerging areas like biotechnology that's a -- in quantum, those are big areas in our Leidos Innovation Center, where we're working on the R&D in those areas that then can move through different program phases and be applied in different mission sets. So you just heard from Heidi Shyu. She's the Under Secretary of Defense for Research and Engineering. There's another quote from her there that says, yes, we need innovation. You've heard that our business is built on innovation and technical discrimination, but they need it fast, right? In a moment, I'm going to talk a little bit more about the pace of the threat and financial limitations and things like that, all the other stressors that the country is facing. They need it faster, they need improved missions. And so us being able to operate with agility, as Steve talked about, really allows us to get in there with new capabilities and improved missions and help them succeed. You heard a little bit about hypersonics already. We have an incredible portfolio there. We've got the Army's launcher for that. We've got the common hypersonics glide body. You heard about the thermal protection system. We're working very hard at technology integrations in those areas to improve the mission sets on the offensive side. And then on the defensive side, you've heard about our sensors that are going into space to be able to detect and track these highly maneuverable, fast hot targets that you can really only do from space. On the right side of the chart there, you see the portfolio of integrated force protection capabilities, those are really sensors and detection and tracking kinds of capabilities along with effectors like the air defense launcher, high-power microwave, high energy laser, global force protection, things that can take out threats over a variety of scenarios and different mission sets. And so we'll spend a lot more time talking about that both in the demos later today and in my colleague's briefings. So as I said just a moment ago and what Steve highlighted, in the turn to the great power competition, you can't forget about the terrorism fight, but the threat is evolving so quickly, right? The standard acquisition processes that -- with the [ foreign] that the government and our customers normally operate with just don't work. So we're going to talk a little bit more about capitalizing on rapid acquisition authorities and those capabilities. So on the customer side, they're doing their part to move fast as well. So we have to pace the threat. As I said, they want new missions and capability that allows them to execute missions that they wouldn't have tried before, getting further upfront closer to the enemy and getting our war fighters out of harm's way with autonomy and those sorts of things. But with the financial limitations that the country has, they needed at a reduced cost, right, do more with less, but do it faster, do it with agility, building in security and cyber resilience, that's in our DNA. That's in everything we do. It doesn't do any good. If you have an incredible signal processing and sensor capability, you put it in the field and somebody takes it out immediately. So these things have to be protected. And then a focus on how do you remain agile, right? The digital engineering approaches, where we can demonstrate the value -- the mission value quickly upfront before you spend money all the way to demonstrating the value of a new module very quickly or those -- let me just say, modular open systems architecture, which a lot of us know a lot about allows you to integrate new capability, new mission capability very quickly, very cost effectively. It prevents the -- for the government and our customers, things like vendor lock, right? They don't want to be beholden with contractors with their hands out all the time. So they want the best of breed to be able to be integrated quickly. So how do we do this? On the next chart, I just have a couple of examples of how we take that innovation and technical discrimination, which is the basis for everything we do and how we move through various program phases from R&D, science of technology through the valley of death, where we do engineering development prototype demonstration and test. That's with our war fighters, right, working very closely with them to -- so that's in their hands. And in many times, before we get to a program of record, we're delivering prototype capability that is residual mission capability. They're really using it in the field, and it has to work, and it has to be on schedule and on cost. And so -- as you come out of that valley of death into programs of record [ protecting ] larger rates and things like that. So how do you do that in a way that where you continuously innovate through that, improving mission capability? Well, the things on the left there, in addition to leveraging the rapid acquisition authorities, where the customer is helping us go fast. Tailored engineering, we talked a little bit about digital engineering is how do you manage the risk, right, of integrating, deploying this kind of capability, but also allowing agility, right? You don't want to over process it, but you also want to manage the risk. We work very hard at doing that and having our chief engineering function, manage that. Preparing for the program phases early, right? Having the right people in the right spots. The people on the left side of that valley of death doing the R&D aren't the same people, who are delivering prototypes necessarily or doing the manufacturing production abilities and the tails of programs and the programs of record. So you have to have the right people, and you have to have the right processes and you have to maintain speed, agility and security through all of that. So just a couple of examples there. In the tactical weapons area, you can see the small glide munition. You're going to see that later today. That came about because of a very special relationship that we had with our SOCOM customer, where they had a need, a gap in capability in a few months. We designed a new capability. And within a year, we got a prototype into the field. You can see that in the middle, about to destroy a truck there. They were having problems getting the mission impact they wanted. And that has gotten through the valley of death into production and we're building many units per year. That's changed a little bit, as we've gone from the terrorism fight to the nuclear fight, but we're working on other capabilities and other extensions from that sort of weapon into the future. In the middle, you've heard a lot about counter hypersonics capability with wide field of view with a sensor on the bus and a network payloads in space. We worked very hard for a number of years to develop new sensor capability and new signal processing techniques that allow you to track and detect, characterize these kinds of threats from space, and we won Tranche 0 in the middle. We're delivering those payloads right now to be launched. And then Steve talked about in the future, the programs of record with Tranche 1 and Tranche is beyond that with the SDA. On the bottom, you see our Air Defense Launcher. We've got a long history. Again, this is another force protection technology in that portfolio being able to launch kinetic missiles at incoming threats and cruise missiles and those sorts of things. We've got a long history in that Air Defense Launcher technology, investing for technical discriminators. We're working right now on IFPC enduring program to deliver prototypes for those, and then that will hopefully evolve into low rate production and future production of lots of those units with potential foreign military sales, those sorts of things. So we're -- we're in the thick of that one right now. If we move on to the next couple of charts, what I'm going to do is just talk to you about a few enabling technologies, autonomy, reinforcement learning, machine learning, artificial intelligence are really important for us. It's how you get the war fighter out of harm's way. It's how you get capability further into the fight, where you wouldn't put war fighters. Our approach to this is nested in hierarchical. We have autonomy at the subsystem level, at the platform level, should the aircraft or ship turn left or right, how fast should they go, those sorts of things, depending on mission capabilities and at the highest level is campaign and resource management. You're going to hear a demo from Tim Peter later today that talks about how are we using AI to manage a campaign, how many airplanes, how many missiles, how many ships, those sorts of things and turning humans into super humans, right, making decisions faster, staying ahead of our threats. On the lower part of the chart, you see high-power microwave. That is a capability that puts energy on a target and essentially cooks the electronics and it knocks it out of the sky. That's a very different approach than shooting missile at a threat or a high-energy laser. And we have a portfolio of these kinds of capabilities. This gives us a very deep magazine to address multiple threats nearly simultaneously. But we have this variety to address the different mission scenarios on what you would do. On the last chart, I'm going to start at the bottom with the sensor capability. We worked very hard in the Dynetics Group on exploiting different phenomenologies in RF world, EO/IR, acoustics and being able to put sensors in the field that can detect and track. On the top, we also have the advanced computational capability and signal processing capability to include algorithms and implementations and embedded ways on processors, sometimes very low swap size, wherein power requirements are put on us. It has to look like a rock and be forward and be cyber protected and not be able to be attacked and those sorts of things. But these 2 combinations together really allow us to characterize, detect and track threats, and you'll see a variety of those kinds of capabilities throughout the day. That's it for me. What I'd like to do now is hand it over to my colleague, Larry Barisciano, who runs our Weapons Technology and Manufacturing Operation and that portfolio. Thank you. [Presentation]

I didn't want you to miss that uplifting video. So I needed to send it back. If you need a second to watch a feel good cat video before I start, just let me know. I'm Larry Barisciano. I'm happy to be here. As Steve mentioned, I am while not new to Leidos, I am new to Dynetics and new to this role, but really excited to talk to you today about some of our force protection capabilities. I'll start. If we just look at the big picture and why we're doing this, just taking a look at the overall threat environment to our key assets to our war fighters, you can see on the right side, all the threats that we see from all of our adversaries, ranging all the way from ICBMs down to small unmanned aircraft systems; and then on the left side, the layered defense approach that the government is looking to put in place. The portions that I'll talk about today are the indirect fire protection capability. They are more close-range type defense mechanisms against subsonic cruise missiles, rockets, mortars and UAS threats. The IFPC technologies are the ones that we are driving through our Dynetics Group here. So I'll take you through a few of the key programs, and Tim laid the groundwork for some of them. I'll start with IFPC Enduring, which is one of our ground defense launchers. We're currently on contract in a prototype phase to provide 16 prototype launches. IFPC Enduring is intended to combat subsonic cruise missiles, as well as medium-sized UAS and other aerial threats. The launcher that we are working to develop in prototype is based on an open system architecture, preserving the ability to integrate new missiles, as threats evolve. It's a 360-degree protection, able to engage multiple targets at once. The work that we're doing today, which you'll see more on the last stop that we'll take up at our Chase facility positions us very well for the follow-on capabilities that could come through low rate initial production, as well as full rate production. The demand signal that we see from our government partners is very strong. They have pretty much said if the system were available to be fielded today, they are ready for it to be fielded. And so we need to get through the prototypes, prove the technology all the way through and then we see a strong demand and a strong possibility of being able to move into production. Also as part of the IFPC family and also focused on cruise missile threats and rockets and other UAS and fixed-wing type threats is the high energy laser or the aptly named HEL. And so we are working today in a pre-prototype environment, working to demonstrate the technology. And one of the things that I've observed immediately in joining the Dynetics team is one of the things that Steve talked about, and I think it's one of the reasons why customers want to work with us here in Dynetics is our ability to respond to real-time changes in the need. When we began working with our customers on HEL, the focus was on 100-kilowatt laser. But as the threats have emerged and the capability needs have changed, they're looking to scale to 300 kilowatts really pushing the envelope on the tactical laser technology, and we are ready to respond, and that's what we are off. We have a lab that is up and running, working to integrate both the laser capability, as well as the thermal management capabilities needed to be able to use the laser in a tactical environment, building upon capabilities that the government has already developed and making sure that we are ready to demonstrate those capabilities. Within a couple of weeks, we should be ready to demonstrate the capability in the lab and then also take the capability out to White Sands and be able to initially show how it would perform in that environment. And that pre-prototyping phase is going to help inform the characteristics of the system, help us to continue to develop how it needs to evolve in order to be effective in combat. And the work that we're doing for the pre-prototype will position us well for a follow-on prototype phase, as well as a longer-term production capability, where we look to 70 or more potential systems in the coming years. Continuing, I'll talk a little bit about some of the sensor capabilities that go along with the IFPC family. So the multi-domain radar for a contested environment or MuDRaCE is something that we've been working with the Marine Corps to prototype capabilities really looking at a survivable air defense radar that can be part of the overall IFPC [indiscernible]. We've worked to leverage existing capabilities, starting with the army long-range persistent surveillance or ALPS and be able to integrate other sensor technologies, be able to integrate fusion capabilities to make it highly capable, highly survivable. And the work that we're doing in MuDRaCE positions us well for a program of record that we're looking forward to called MRADR for the Marine Corps. And then the last one that I'll talk about in some detail is the mobile force protection. And so this is a capability that we're developing in partnership with DARPA. It's a multi-phased demonstration of capability. It's focused on defeating smaller unmanned aircraft systems. And one of the things that we have focused on developing is a capability that has an end-to-end kill chain, all the way from identifying threats, to engaging them and defending them and embedding as much automation as possible to reduce the burden on the war fighters and deliver the capability to remove small threats and clear the air, so that we can perform our missions. And we're looking to continue the demonstrations that we're doing in the multi-phase demonstration phase that we expect to continue to work with our customers, really leveraging our sensing, autonomy and integration capabilities in what we would be providing. So if I step back, and there's one additional one on the chart that Tim already talked about, which is the high-power microwave. When we think about what we're doing in force protection in the context of the valley of death that both Steve and Tim talked about, all of these capabilities are seeing the upside of the valley. They're all in the place, where we're demonstrating the capabilities to the point that they'll come out the other side and be ready to move into production and be able to support our mission. All of them, while in various stages of prototype and demo have upcoming milestones and decision points with which we will be working with the government and positioned well for the follow-on work that we get these systems out into the field. And with that, I can turn it over to my colleague, Jonathan Pettus, who will talk about our Aerospace, Defense and Civil Operation. [Presentation]

Well, it's already been discussed several times in the presentation, and if you follow this industry, it's certainly clear that hypersonics have emerged. It would seem fairly recently, as a major priority for our national defense. But that's not because, as Steve alluded to, hypersonics technology is new. It's because of the recent progress from our strategic competitors, namely Russia and China in pursuing technology that, in fact, the United States led the world in the development of and getting to a point, where it actually fielded operational hypersonic systems, while we have not. And so from that perspective, it's become a top priority. And in part, that's because of what those systems offer from an offensive perspective. In general, Hyten's quote, you saw him in the video, by the way. He's a native Huntsvillian that we're very proud of. You see sort of the overall capability of the offensive hypersonic systems, the ability to get out long-range targets that are well defended that are time-critical threats. And so since our adversaries have made this progress, we are now in essentially an arms race, the Secretary Kendall quotes here on the slide to catch up with our competitors and to move past them in terms of our capabilities. When we talk about hypersonic systems and the fact that the hypersonic systems are not new, people focus on the speed, and I think you're probably aware of, by definition, we talk about systems that can [Technical Difficulty] in speed. And it's really not just the speed that makes the difference with hypersonic systems. It's the combination of the speed and maneuverability and then the depressed altitudes that they can fly at. And in fact, that's represented here in this chart because in reality, our long-standing ICBM capabilities fly at much greater than Mach 5, but they do so in the vacuum of space primarily. And these ballistic systems, their characteristics sort of are dominated by the fact that they have a very predictable trajectory. And so once they're detected by either ground-based systems or space-based capabilities that are in higher orbits then we can calculate, we can track, calculate a trajectory and a target, give fire control information down to a defensive system and then respond to that. And that time frame, that kill chain allows it -- in minutes for that to occur, which is actually a long period of time to defend against these kinds of threats. Now with the emergence of hypersonic systems, you see there in the chart the different trajectories they can fly. There are 2 different kinds generally of hypersonic systems. They are the boost glide systems, which leverage a propulsion system, a rocket or a booster to fly to the edge of space or interspace, and they carry a glide vehicle that has been released, enters the atmosphere and can leverage the friction in the atmosphere and aerodynamically glide to its target at a lower altitude, while maintaining those hypersonic speeds. The other type of offensive system is an air breather or cruise missile type capability that uses a unique engine called a scram jet that allows it to actually be powered in flight through the atmosphere. But these systems fly at these much lower altitudes, and the real challenge there is our traditional ground-based missile defense system that we've leveraged through the years and has offered big advantages for us against our adversaries, those systems allow to pick up those, detect early these trajectories of ballistic systems. But with hypersonic systems, it's too late because of the curvature of the earth and the line of sight that those systems have, by the time they detect these hypersonic systems, there's only a matter of seconds to respond. So that's the challenge, and it renders our current defensive capabilities fairly useless. And so that nation is responding on the defensive front, to create a space-based, a new space-based architecture that allows for an earlier detection and then tracking of these much dimmer targets that maneuver in a very different way than ballistic systems. And so offensive boost glide, offensive air breather, defensive space-based architectures, we are involved in foundation programs on all 3. I'll talk about a couple of those, and you'll see later some examples of what we're doing in this area. By the way, because of this threat, part of the response is the Defense Department is spending around $4.5 billion in '22 and upwards of $5 billion plus in '23. That doesn't account for some of the infrastructure wind tunnels and testing environments that are being invested in, as well as we respond to this threat. So now to some of our programs in this area. I think really our flagship program that's already been mentioned is the common hypersonics glide body program. And that really is a program that supports both the Army and the Navy, that's the common term that's used there. This program is essentially providing that glide body that I mentioned that rides the top of a booster in a boost glide system. We're building that glide body to be provided to the Navy for their conventional strike program, and we're also building the same common glide body to be provided to the Army for the long-range hypersonics weapon. So 2 different systems, but leveraging that same common glide body, and so it's an example of how important this is, I think, to our military that you see this, this significant collaboration between the Army and the Navy to ensure that we can get these systems fielded to respond to the threat. We have a contract, actually 2 contracts that are associated with this work. One is for the glide body itself. The Navy is the design entity. So they're doing the design using Sandia National Labs, as their partner to design the capability and the Army has the role of being the production agent. And so our 2 contracts that we have, one is for the glide body, the second is to actually integrate the thermal protection system. That's one of the more complicated portions of this problem to protect the glide body, as it experiences those challenging thermal environments in flight given the heat that's generated. And so the thermal protection system work, combined with the glide body work equates to $960 million in contract sealing to develop these capabilities. And we're on contract today for our first delivery of 14 glide bodies, 6 test systems and then 8 prototypes that will be fielded by the Army. We'll talk a little bit more about that. I think this is a really good example though of what Roger talked about, the Army because of the need to get this fielded quickly, they established an entirely new organization, RCCTO, Rapid Capabilities and Critical Technologies Organization. And RCCTO was looking for an industry partner, who could take this government design capability, work with the government in a very tightly coupled fashion and then create essentially the procedures and data definitions to make that producible stand up an infrastructure, so that, that can be manufactured. So within less than really 1,000 days, we got on contract with RCCTO. We sent 60 engineers out to Sandia. They work side-by-side with Sandia engineers to build the first system. And in doing so, we work to develop the data package then that allows us to transfer that work and that capability to over out to our facility that we also stood up in that time frame that 3 years ago was a modem factory, and you'll walk through that in just a bit. And so in 3 years, stood up the infrastructure, got the TDP done, developed the first industry produced system last April, and that will generate the next -- the first really 8 glide bodies that will be deployed, and those will represent part of the first operational hypersonic systems that the nation will have. So that rapid and intimate sort of integration with our customers, I think, is our hallmark. And when we talk about how we win, that's really key to how we win. Along with that -- and by the way, the facility you'll see is equipped to move to low rate production and then higher rate production, as we move forward. Now getting to higher rate production is all about -- how do we create more affordable manufacturing techniques and integration techniques for these systems. And key to that is being able to test more frequently. Our adversaries, China namely is testing in perhaps 20x a year, maybe more. And so for us, we typically design these large sort of exquisite test programs that only allow us to test a full system maybe once a year. And so the key for moving more quickly relative to producibility and to incrementally add technology is to be able to test systems more frequently. And so that's the MACH-TB contract that Steve mentioned that we've recently won. And so we're positioned there, as the prime contractor through a Navy led effort, but that M stands for multiservice. So the concept here is the Army, the Navy, the Air Force, all the entities, even some other maybe civilian agencies like NASA would leverage this testing capability to attack the hypersonics problem. And so the Navy is the lead. We're partnering with the Navy and a number of industry partners that we brought to this opportunity, our subcontractors that provide commercial low-cost propulsion capabilities or maybe bringing interesting materials and microelectronics, communication and software capabilities that are relevant to the hypersonics problem, and this will give us the ability to test sort of within subsegments of the hypersonics flight regime using lower-cost sounding rockets and things of that nature. And so we're really excited about this one because we get to provide the experimental glide body that will be used to modularly insert some of these technologies. And then secondly, it's going to put us at the center of the nation's hypersonic flight test program, and we're going to be able to actually have insight into those technologies that positions us to be a bigger player long-term in this hypersonics program for the nation. So that's MACH-TB. The goal there, by the way, I think I failed to mention is to get initially to 12 flights a year. And then publicly defense officials have talked about perhaps doing as many as one a week in the future. The last program that I'll talk to turning to defense, and it's already been mentioned is the wide field of view program. We, as Tim said, are engaged heavily in this program. This is the response to the hypersonics threat with a new space-based architecture that the space development agency, part of the space force now has stood up. And the concept here is to develop a lower -- in low earth orbit closer to the earth, a network of smaller satellites, lower-cost, smaller satellites that sort of that one layer provide a communications or transport capability that then actually can integrate with probably the most important part of this architecture, which is the sensors that provide you the ability to see those dimmer targets that hypersonics presents, as well as to track those targets. And that's the warning and tracking layer. SDA has really taken an innovative approach to how they do acquisitions and how they built this program around spirals, they call them tranches. So the first spiral is Tranche 0. We were 1 of 2 providers selected based on our really discriminating payload capability. This is where we're leveraging the long-standing Leidos' sensor capability in [ IR/EOL ] or as Tim talked about, and then combining it with the rapid prototyping, rapid engineering capability of Dynetics. We're on contract with our prime in that case, SpaceX, who's providing the satellite system and the satellite bus, where we're providing the payload. And we've delivered our first 2 payloads that will be ready for launch no later than early next year. And so that's Tranche 0 includes 4 payloads, 2 satellites. And when we talk about these payloads, we really believe as we look strategically these opportunities, particularly with SDA is that the real value is in those payloads because that's really the purpose and the application of the system. If you cover IT services or IT services, I was talking to some of you last night, and I have a background in that as well. Think about -- from an IT perspective, you have the computing infrastructure and the operating system, and then you have the application. The real value is the application that you're trying to enable, that's what the payload does. It's the discriminating capability. That's why we were selected as one of the first 2. And then we've also been selected, as Steve said, for Tranche 1, where we'll actually deploy 14 payloads in orbit to provide this first operational capability for at least a segment of the earth to cover and to prove out the ability to sense and track these hypersonics targets. I would point out on the right, those you can see sort of the process in our facilities out on the West Coast for actually building out the sensor, the electronics box of the sensor and then actually the thermal enclosed version or view of the sensor, all that's happening out on the West Coast in our Leidos laboratories. And with Tranche 1, we're building out our capability here at Dynetics to do this production at larger scale. So it's a great example of the combination of Leidos capability, combination of Dynetics capability that resulted in the win that Steve talked about, and we think we're well positioned now for the future tranches. One of the interesting things about this opportunity is because it's in lower earth orbit, these satellites have to be replenished 2 year to 3 year every 2 years to 3 years. So once you get a place in this business, there's a real opportunity for recurring revenue streams, as we replenish those systems and continue to improve. So that's the wide field of view program. And just a summary chart here of some of the key milestones and the programs that I've mentioned. I talked about the MACH-TB win. The real work starts early next year when we'll actually be building out the first flight test campaign. We hope to at least do 1 test in '23, perhaps more depending on funding that's available. I mentioned the glide body delivery in April, which was the first test system that we delivered. And then the real significant delivery for us is those next 8 that we will be delivering to the Army, so they can get deployed at the end of '23. And then we're working on our next order from our customer on the glide body program, where we expect to be filling a larger number of systems to do the next batteries for the Army and then later for the Navy to deploy on their destroyer ships for sea launch capability. So we're expecting and should close on that in the near future. And then finally, you see at the bottom, the wide field of view schedule, and I mentioned the fact that we are really close to the launch of those first 2 payloads for Tranche 0 -- tranche. The next 2 will follow closely behind that this year. And then in '25, we'll be deploying those Tranche 1 systems. So that's a quick preview of some of the things you're actually going to see out at our MidCity facility, and you get a chance to see some of the actual details of our hypersonics program. And now I'm going to turn it back over to Steve to close this out.

Thanks, Jonathan. I hope you got a pretty good idea there, the kind of things we like to take on. We like hard challenges. That has been a hallmark of this Company since its founding. And that is what -- that combined with our agility and our ability to scale really is what sets us apart. And it's hard to think of a better challenge than this one, right? How do we land humans on the moon for the first time since 1972 and do it successfully. And we have been a part of the NASA human landing system program since the first phase of it, actually, a pre-phase of that started back in 2019. And then, obviously, 2020, we were selected as 1 of 3 that down select happen. And then now NASA has the sustainable lunar development or SLD opportunity that we will be putting in our proposal next week for it. We're really excited about that. We think we've got a concept that is very unique. As you can see here, it's very close to lunar surface. So it's easy for crew to ingress, digress. It's very easy for cargo to being placed on the moon with the great success of the Artemis program. By the way, we had hardware on the space launch system that went, which was very exciting. On the next launch, we will have hardware on the -- not only on the space launch system, but on the Orion spacecraft that monitors the health of the astronauts, the crew cabin environment that they're in. That was another great program that we won a few years ago. And then 2 launches after that, we'll have our first launch of what's called the Block 1B of the space launch system. That's the one that can take larger payloads to the moon. So we start talking about larger things to the surface, whether that be things like lunar transfer vehicles, larger habitats, other systems in orbit, you need that Block 1, keep B capability. And we're building the top of the rocket as I like to call it, that goes between the top of the upper stage and the Orion spacecraft that will take these large cargoes. We're building that right here in the Huntsville area in our Decatur facility. We won't get a chance to get over there today. But if you're ever back in town, we'd love to take you over there. That is we are building the world's largest composite structure that it will be flown in space. It's 32 feet tall, 27.5 feet in diameter. And again, for a company that really wasn't even in the space business in 2009, it just kind of shows the mentality of our employees and our folks, and it gets folks really excited when you take these kinds of things on and make a difference for the country. Interestingly enough, after the successful Artemis mission after they went around the moon and now we've had this human spacecraft, the farthest from the earth it's ever been, closest pass at 81 kilometers or miles, I think, kilometers from the moon. Now we look at in the future the Chinese have announced today, they're going to have a sample return mission by '25, and they're going to have boots on the moon themselves by 2030. So I think we'll see a lot more interest in this program, particularly in the U.S. as we go ahead. And this is a great partnership. This is run by Marshall Space Flight Center. And so obviously, that's right down the road, where a couple of us spent a big part of our careers. So now on to the next stop, this is -- the highlight of the day is coming up. We gave you kind of an overview last night and this morning, but what we show is -- I think you really love. We'd love to show you we could spend all day walking through our facilities and showing you things, but we're going to -- we're going to highlight 3 things. So we're here in our Dynetics headquarters building. We're just going to go across the parking lot to the Stephen Gilbert Advanced Manufacturing Facility. We're going to highlight there our small glide munition, our advanced autonomy solutions both in hardware and in software at the campaign level as Tim talked about earlier. By the way, Steve Gilbert is -- was our Co-founder, and Steve passed away right at the time of the acquisition. Steve founded this company with Herschel Matheny in 1974. Steve was still sitting across the hall for me when he passed away. And I'll tell you, you walk to Steve and Steve was a radar engineer. He would have engineered, this is just the kind of Company we are. He would have young engineers coming and he was mentoring them about how to work on these advanced radar solutions. And we would sit and talk about I said, Steve, did you imagine in 1974 that we'd ever have something that we would be building things to go to the moon or hypersonic systems are now part of the larger Leidos Corporation, he said absolutely not. Never in a million years would have imagined that. And to watch the excitement on his face, where it went probably similar to the kind of things Roger from Dr. Beyster later on in life. And that -- so we named that facility after him. From there, we'll go over to what we call our MidCity Campus, that was what was the modem factory when Leidos acquired us, and literally in well, right at 3 years from start of that program, you'll see where we're at. That is a classified facility. We had special thanks to Paul Malone and our security team, Terry Phillips in headquarters that help make that happen. We're going to take you into classified facility today, which means a lot of the things are going to be covered up or out of the room, but you get an idea of what it takes to put together a hypersonic system. This facility is not just for the common hypersonic glide body, it's for things like MACH-TB and other programs that you'll hear more about the next -- in the next few weeks. Then we'll leave there, and we'll transit a little further away to the east side of town to what we call our Chase facility. That's about 0.25 million square foot manufacturing facility. That's a hard core manufacturing facility. That's our newest on -- as a part of the Dynetics family. That's where we are manufacturing our Enduring IFPC prototypes, that will then go on to low rate production and then full rate production, and we've got facility size out to do that. We're actually going to have lunch there. When we get done, we're going to have lunch on the floor. So you'll get to see what's going on right amongst new Army Launcher hardware, which is on its way to the field. We'll have a Q&A session there, and we'll wrap it up, and we'll get you on your way back to the airport. Just a few logistical announcements. So in 15 minutes right upfront, where you came in, the bus will be back out there, so you've got some time. Maybe use restroom, make phone calls, whatever you need to do. Restrooms are right outside the door here, right behind hand, if you need to do that. On the back of your badge, it says, A or B. So when we go into the Gilbert facility, you will be obvious, it is a B group and then A group, and then we'll switch partway through. Everybody gets to see the same things. We're just going to have to split in 2 just because of the facility limitations. Also, on the back of your card is your lunch table. So I happen to be table 3. So that will be there when we get there. And then we have shuttles available. We have a shuttle that will take passengers to airport; and then a separate shuttle will take if you want to go back to the hotel or come back here, you can do that. I think we made arrangements already for the bags. When we're on the tour can't take pictures. I know that's probably not a surprise. And best just leave your cell phones on the bus, they will be safe there, as we go in there. We're sure we can't have them when we go in to the hypersonic facility, you can have it at the other places, but we just can't be taking pictures, where we go. Ladies, did I miss anything from a logistics standpoint. Stuart, anything else? Okay. So we're officially now on break. We've got 13 minutes before we depart. Thank you.