NORTHROP GRUMMAN CORP /DE/ Annual Report, Year Ended Dec 31, 2021

Northrop Grumman Corporation (NOC) reported total sales of $35.7 billion for the fiscal year ended December 31, 2021, a slight decrease of 3% year-over-year, primarily driven by the divestiture of its IT and mission support services business. Excluding this divestiture, organic sales grew by 3%, reaching $35.5 billion, indicating underlying business growth. The company's strategic focus remains on national security priorities, with a significant portion of its revenue (85%) derived from the U.S. government. The company demonstrated strong operational performance with a 39% increase in operating income to $5.7 billion, largely influenced by a $2.0 billion pre-tax gain from the IT services divestiture. Transaction-adjusted net earnings saw a 4% increase to $4.1 billion, reflecting improved segment operating income and lower corporate expenses. Diluted Earnings Per Share (EPS) surged by 129% to $43.54, and transaction-adjusted EPS grew by 8% to $25.63, underscoring effective financial management and operational execution. Key growth drivers included the Space Systems segment, which experienced a 24% organic sales increase, and Mission Systems, with a 6% organic sales increase. The company's backlog stood at $76.0 billion at year-end 2021, providing a solid foundation for future revenue. Management also highlighted continued capital allocation to shareholders through share repurchases and dividend increases.