Summary
Northrop Grumman Corporation (NOC) reported solid performance for the fiscal year ending December 31, 2025, with total sales reaching $41.95 billion, a 2% increase year-over-year. The company's backlog remained robust at $95.7 billion, indicating strong demand for its advanced aerospace and defense solutions. Net earnings were $4.18 billion, largely in line with the previous year, supported by a $231 million pre-tax gain from the divestiture of its training services business and positive mark-to-market pension adjustments. The company's strategic focus on key national security priorities, including space systems, military aircraft, missile defense, and advanced weapons, continues to drive growth across its major segments, particularly in Mission Systems and Defense Systems. Despite some program-specific challenges, such as the B-21 Raider program, Northrop Grumman's diversified portfolio and strong customer relationships with the U.S. government (representing 84% of sales) position it favorably in the evolving global security landscape.
Financial Highlights
52 data points| Revenue | $41.95B |
| R&D Expenses | $1.10B |
| Operating Expenses | $37.67B |
| Operating Income | $4.51B |
| Net Income | $4.18B |
| EPS (Basic) | $29.14 |
| EPS (Diluted) | $29.08 |
| Shares Outstanding (Basic) | 143.50M |
| Shares Outstanding (Diluted) | 143.80M |
Key Highlights
- 1Total sales reached $41.95 billion, a 2% increase from the prior year, driven by growth in Mission Systems and Defense Systems.
- 2Backlog remained strong at $95.7 billion, up 5% from the previous year, signaling continued demand for its products and services.
- 3Net earnings were $4.18 billion, reflecting stable profitability despite a significant B-21 program loss provision recognized earlier in the year.
- 4The company successfully divested its Immersive Mission Solutions (IMS) training services business for $333 million, realizing a pre-tax gain of $231 million.
- 5Segment operating income saw contributions from Mission Systems (up 14%) and Defense Systems (up 22%), while Aeronautics Systems experienced a decline due to the B-21 provision.
- 6Free cash flow increased significantly by 26% to $3.31 billion, demonstrating strong cash generation capabilities.
- 7Northrop Grumman continued its commitment to shareholder returns, with share repurchases and dividends totaling $2.9 billion in 2025.