SECURITIES AND EXCHANGE COMMISSION

ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)

The following unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and the instructions to Form 10-Q and Regulation S-X. They do not include all information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2026 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2026.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Overview

Aevum Zenth Conglomerate reported strong first quarter 2026 results, with revenue of $24.9 billion, representing a 12.3% year-over-year increase. Net income grew to $3.3 billion, or $2.11 per diluted share, up from $1.45 in the prior year period. Growth was broadly based across our Energy, Technology, Healthcare, and Aerospace divisions, supported by strategic acquisitions and sustained investment in R&D ($2.8B in Q1 2026).

Segment Performance

• Aevum Energy & Power: Revenue of $5.8B (+14% YoY), driven by accelerated deployment of grid-scale storage and next-generation nuclear partnerships.
• Zenth Digital Systems: Revenue of $4.9B (+18% YoY), reflecting strong enterprise AI contract renewals and cloud infrastructure expansion.
• Aevum Aerospace & Defense: Revenue of $4.2B (+9% YoY), with multi-year satellite constellation contracts and commercial launch services entering peak delivery phases.
• Zenth Health Sciences: Revenue of $3.6B (+11% YoY), supported by late-stage clinical milestones and expanded global distribution agreements.

Liquidity and Capital Resources

As of March 31, 2026, we held $8.4 billion in cash and cash equivalents, plus $12.3 billion in marketable securities. Operating cash flow remained robust at $4.9 billion for the quarter. We maintain a diversified capital structure with a net debt-to-EBITDA ratio of 1.8x, well within our target range. In Q1, we returned $2.0 billion to shareholders through dividends and share repurchases, and reinvested $4.6 billion into capital expenditures and strategic acquisitions.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are exposed to market risks in the ordinary course of business, including interest rate fluctuations, foreign currency exchange rates, and commodity price volatility. We utilize derivative instruments to mitigate these risks in accordance with our Treasury Policy. Sensitivity analysis indicates that a 100 basis point increase in interest rates would increase annual net interest expense by approximately $145 million. Foreign exchange hedging covers approximately 75% of anticipated material cash flows over the next 24 months. No material changes were made to our risk management framework during Q1 2026.

ITEM 4. CONTROLS AND PROCEDURES

Our Chief Executive Officer and Chief Financial Officer have evaluated the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934) as of March 31, 2026. Based on this evaluation, they have concluded that our disclosure controls and procedures were effective. There were no changes in our internal control over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

ITEM 1. LEGAL PROCEEDINGS

We are party to various legal proceedings and claims arising in the ordinary course of business, including regulatory inquiries, intellectual property matters, and commercial disputes. While the outcome of such matters cannot be predicted with certainty, management does not believe that the final disposition of any current proceedings will have a material adverse effect on our consolidated financial position, results of operations, or cash flows.

ITEM 1A. RISK FACTORS

In addition to the other information set forth in this Quarterly Report on Form 10-Q, you should carefully consider the risk factors described in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025. No material changes have occurred to the risk factors previously disclosed. Additional risks related to cross-divisional integration, geopolitical supply chain constraints, and evolving regulatory frameworks in emerging markets are discussed in our latest investor presentation.

ITEM 6. EXHIBITS

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.