everyone. And us. joining thank for morning, you Good Todd. Thanks,
release, the global driving you quarter, demand Northrop business As morning's saw up is In this segments. Grumman contributions of were exceptional sales earnings growth. solid from second from our solutions with our for X% each four
We're Our strengthening our guidance sales by and our retain sales full hire XXX ability Even range million. line. and outlook. our year-to-date to and improving increasing are top X% increase year's supplier deliveries of talent improved an
In in addition, book-to-bill robust, ratio with X.XX. was a quarter award of the volume
X.X. to As year book-to-bill a projection increasing full result, our approximately we're
our Our $XX sales continues more long to supporting be billion two backlog growth expected our XXXX term outlook. times than
share more higher full last for flow second increasing of positioning end We delivered by lower the billion a full the earnings our our of target. we're And of guidance in quarter healthy And quarter year free $X.XX. was $X.XX. than range cash well QX than dollar year solid year, per us
space The in and national the the strategy. bipartisan areas of the Turning including national to defense such the committee our domain, budget ‘XX security advanced the information environment weapons. bill portfolio, as the recent U.S. support congressional for continued administration's modernization to and encouraged by budget starting strength superiority, triad, We're prioritize with funding and implement FY
further would Global increase defense and support which spending, increased products to for spending grow also Ukraine our allies for represent continued related address to threats. our continues also We evolving demand. as emergency demand anticipate even
our backlog this [Argonne] well and IBCS key munitions. With to programs and in robust well which demand markets spend a as earnings expansion, I'd is to a to outlook. our meet are growth cash plan. like We as minutes margin EX-D positioned a and now with flow path outlining leading of multiple growth such as element few
previously Our is implies a the the XXXX half in delivered margin first the guidance range in segment a mid we've operating margin of in This XXXX. rate XX% in XX.X% provided. the rate guidance range dollar half. second of Having
key an this term. XX% We to a longer increase rate year-over-year XXXX, the is target also opportunity our margin margin Achieving in and get drivers. in on three improvement see built to
macro impacted economic First, factors have chain that and cost driven stabilization is of temporal and efficiency. higher the our supply labor
ongoing drive the affordability, the cost is performance. across helps management that Second, company programs and competitiveness, of implementation
shifting third see our business more international And mix, is to contracts. we production and which
the mature our grows, As over international of programs development and demand several current years. many next
people at factors, macro makes we're With it second have disruptions tightness, and of supply in market suppliers disruption, chain ahead labor pursuing and this placing regard cost the delivery. our the created more facilitate sources delays and material To to reduce rooted subsequent growth. schedule sense where pandemic, economic of timely buying to the programs
the progress We down growing across are to we our rates issues and had exceptional We've new attrition see chain pandemic from of headcount seeing performance are signs these fewer actions. our And emerge. since pre XXXX, half levels. supply in of second
of optimizing an important labor driver on which is profitability. now efficiency, focus Our is
months effect well industry higher have of in to programs growth But We're learning instructions. employees. especially work continue accelerate for challenge the on has curve now standardizing as inflation to has been costs, last labor. for training with as a our leaning base a begun cost others, To innovative moderate. the Inflation forward our and XX
to began backlog, look it end before year experience elevated our inflation. at price fixed XXXX largely of you levels If we was priced
factoring backlog, of expectations end new will this price help we these of year. in And our on bid However, are also into converted that the for our the to bids, particularly have been future. by sales inflation dynamics to additional discipline higher fixed approaches, types XX% into protect working contracts We're in drive against approximately contracts. of
impacts anticipate and we our these have risk Overall, that now largely factors. into macro margins been economic have stabilized incorporated
margin both benefits management, The second opportunity which key driver and competitiveness. of cost affordability is
of reduction. laser drive performance business, across will our foundational these are cost element overhead productivity. on implementation reductions is and which A help focused of digital to We our solutions
customers to partners This example, deliver seamlessly execution, accelerates programs bringing we've environment, and integration, us with across and and ecosystem helping integrated so an program For built they testing speed a that quality, design, focuses into efficiency. together can together. on digital employees, deployment work
factories. to number enterprise increasing And programs across we're systems in that this that should stakeholders. also operating We're the investing active we all are benefit over of in this that the We're advancing have drive ecosystem. scaling our are today, programs of so, doing technologies digital the and in our efficiencies XXX and
For labor example, manufacturing area high demonstrated in use whole technology on efficiencies advanced digital of thread this one this approach across to the the build build. the process. of successfully of we the in B-XX realize the June, expansion And to we've launched over XX%
procurement, supply operation company. managing broadly our into deliver We're costs. This our benefits purchasing we've our we're extending to to the further where thread includes power chain, this centralized leverage and how reduce to working digital we're across business
XX,XXX we've them into begun ecosystem. have our securely connecting suppliers digital We and over
productivity. and years, supplier several of our significantly have to Over next majority improve the supply the this integrated, expect to fully lower base expected we costs is
business The our third opportunity is key of mix. area margin
reflecting year. to plus plus years franchise increasing of had first key house XX% cost significant at XX:XX early mix Cost position contract stage transition about cost one with decade. been on throughout revenue mixes industry up development our the our which has several highest in programs, will we've Plus this the This For production from last
more revenue, fixed price XXXX. sales towards rising shifting to of this XX% see we forward, approximately Looking by
sectors in Production our margins of programs higher typically production. program number than all transition few margin. four of a development are to points As a large
rates. our mix So operating contribute segment can shift meaningfully margin to
development good moving on and production. programs through progress making we're And into
completed For completion example development next to the its nearing and volumes of This its on [Argonne quarter. ramp second phase, production in consecutive fifth year. track flight test is program ER] is
on flight B-XX, the powered on production. successfully And our we another aircraft first transition test to quarter in first flight to milestone important the achieve in campaign in
grow few global a a We international improving larger next digit also rate the percentage as our over to sales expect at our margin years, our opportunity mix. of business double become
air for IBCS international potential quarter, missile second our for customers, this eight capability. and defense we advanced solution the demonstrated In growing reflecting demand
signed to in center capacity of Europe. Rheinmetall with We memorandum for a agreement also F-XX expand fuselage production
margins. flow We three even provide the foundation When cash for expect result better free and our global combined performance affordability, with of and improved strength the future demand. These improvements increasing to strong drivers higher growth. backlog these operating should in margin
of Now of on with year. have returns strategy and we're returning free our XXX% shareholders. cash respect XXth to business to shareholders to to our dividend plan goal returned flow this cash we executing for to capital X%. In investments more are that the increased and track $X.X meet a prioritizes May consecutive than deployment, Year-to-date, we billion by support our year
with our priorities budget defense give in outlook growth trajectory. confidence us customer our alignment and global the Overall,
both converting to shareholders. We deliver to free expansion cash our flow this for and growth are focused value and on margin our customers opportunities
to it hand and I'll Dave year the that, updates with cover he'll quarter to second full So and financial of over details our results outlook.
