10-KPeriod: FY2024

NORTHROP GRUMMAN CORP /DE/ Annual Report, Year Ended Dec 31, 2024

Filed January 30, 2025For Securities:NOC

Summary

Northrop Grumman Corporation (NOC) reported a robust financial performance for the fiscal year ended December 31, 2024. The company saw a significant increase in sales, up 4% to $41.03 billion, driven by strong demand across its key segments, particularly Aeronautics Systems. Operating income saw a substantial jump of 72% to $4.37 billion, bolstered by improved program performance and the resolution of charges from the prior year related to the B-21 program. Diluted earnings per share also increased significantly by 109% to $28.34. The company's backlog grew to $91.5 billion, indicating strong future revenue potential. Despite facing macroeconomic challenges like inflation and supply chain pressures, Northrop Grumman demonstrated resilience, with these impacts largely subsiding. The company also continued its commitment to shareholder returns through share repurchases and dividend increases. Looking ahead, Northrop Grumman remains strategically positioned within a dynamic global security environment, emphasizing its role in delivering advanced defense technology solutions.

Financial Highlights

52 data points
Beta

Revenue

$41.03B

Net Income

$4.17B

10.2% Net Margin

EPS (Diluted)

$28.34

Total Assets

$49.36B

Cash & Equivalents

$4.35B

Free Cash Flow

$2.62B

Financial Statements
Beta
Revenue$41.03B
R&D Expenses$1.10B
Operating Expenses$36.66B
Operating Income$4.37B
Net Income$4.17B
EPS (Basic)$28.39
EPS (Diluted)$28.34
Shares Outstanding (Basic)147.00M
Shares Outstanding (Diluted)147.30M

Key Highlights

  • 1Total sales increased by 4% to $41.03 billion in fiscal year 2024.
  • 2Operating income rose significantly by 72% to $4.37 billion, driven by improved segment performance and prior-year charge resolutions.
  • 3Diluted earnings per share (EPS) surged by 109% to $28.34.
  • 4Backlog increased to $91.5 billion, reflecting strong future demand.
  • 5Aeronautics Systems showed strong growth with a 12% increase in sales, supported by the B-21 Raider program's transition to production.
  • 6The company returned $3.7 billion to shareholders through share repurchases and dividends.
  • 7Mark-to-market pension benefit improved significantly, contributing positively to net earnings.

Frequently Asked Questions

In fiscal year 2024, Northrop Grumman reported total sales of $41.03 billion, a 4% increase year-over-year. Operating income more than doubled, rising 72% to $4.37 billion. This growth was driven by increased sales across segments, particularly Aeronautics Systems, and improved operational performance, including the resolution of prior year charges.

The B-21 Raider program had a significant impact on financial results. While a $1.56 billion charge was recognized in the prior year related to the program's LRIP options, the current year benefited from the transition to production, contributing to the 12% sales growth in the Aeronautics Systems segment. The prior year's charge significantly weighed on operating income, and its absence in 2024 contributed to the substantial year-over-year increase in operating income and diluted EPS.

Northrop Grumman's backlog stood at $91.5 billion as of December 31, 2024, an increase from $84.2 billion in the prior year. This growing backlog, combined with the current global security environment, indicates strong demand for the company's advanced defense technology solutions across its core segments, positioning it well for future growth.