Summary
Northrop Grumman Corporation (NOC) operates as a global security company with a primary focus on government and defense contracts. In 2015, the company generated $23.5 billion in sales, with a significant majority (83%) coming from the U.S. Government. The company's business is structured across four key segments: Aerospace Systems, Electronic Systems, Information Systems, and Technical Services. Financially, NOC reported operating income of $3.1 billion and net earnings of $2.0 billion for the year. The company demonstrated a strong commitment to shareholder returns, repurchasing approximately $3.2 billion in its own stock and increasing its quarterly dividend. Despite a slight decrease in overall sales compared to the prior year, driven by lower U.S. Government contract sales, the company maintained healthy profit margins and a robust backlog of $35.9 billion at year-end. Key risks highlighted include heavy reliance on U.S. Government spending and potential delays in appropriations.
Financial Highlights
51 data points| Revenue | $23.53B |
| Cost of Revenue | $10.33B |
| Gross Profit | $13.19B |
| R&D Expenses | $712.00M |
| Operating Income | $3.08B |
| Net Income | $1.99B |
| EPS (Basic) | $10.51 |
| EPS (Diluted) | $10.39 |
| Shares Outstanding (Basic) | 189.40M |
| Shares Outstanding (Diluted) | 191.60M |
Key Highlights
- 1In 2015, Northrop Grumman generated $23.5 billion in sales, with 83% derived from the U.S. Government.
- 2Operating income was $3.1 billion and net earnings were $2.0 billion for the year ended December 31, 2015.
- 3The company significantly increased its share repurchases, totaling $3.2 billion, and raised its quarterly dividend to $0.80 per share.
- 4Total backlog stood at $35.9 billion at the end of 2015, indicating a strong pipeline of future work.
- 5The company operates through four main segments: Aerospace Systems, Electronic Systems, Information Systems, and Technical Services.
- 6A notable risk factor is the significant dependence on U.S. Government spending and budget appropriations.
- 7Company-sponsored R&D expenses increased to $712 million in 2015, reflecting continued investment in future technologies.