Summary
Northrop Grumman Corporation reported its financial results for the second quarter and first half of 2022. Total sales for the second quarter were $8.8 billion, a decrease of 4% compared to the prior year, primarily driven by lower sales in Aeronautics Systems, Defense Systems, and Mission Systems, partially offset by growth in Space Systems. Net earnings for the quarter were $946 million, down 9% year-over-year, with diluted EPS at $6.06, a 6% decrease. For the first half of the year, total sales were $17.6 billion, a 4% decrease, and net earnings were $1.9 billion, a significant 41% decrease, largely influenced by the prior year's gain on the sale of the IT services business. Despite revenue headwinds and macroeconomic factors like labor shortages and supply chain challenges, the company maintained a substantial backlog of $80.0 billion as of June 30, 2022, with a significant portion expected to convert to revenue over the next two years. The company also continued its commitment to shareholder returns through share repurchases and dividend increases.
Financial Highlights
50 data points| Revenue | $8.80B |
| Operating Expenses | $7.85B |
| Operating Income | $954.00M |
| Net Income | $946.00M |
| EPS (Basic) | $6.09 |
| EPS (Diluted) | $6.06 |
| Shares Outstanding (Basic) | 155.40M |
| Shares Outstanding (Diluted) | 156.00M |
Key Highlights
- 1Total sales for Q2 2022 were $8.8 billion, down 4% year-over-year, with year-to-date sales at $17.6 billion, also down 4%.
- 2Net earnings for Q2 2022 were $946 million, a 9% decrease from Q2 2021, and year-to-date net earnings were $1.9 billion, a 41% decrease, significantly impacted by the prior year's gain on the sale of the IT services business.
- 3Diluted EPS for Q2 2022 was $6.06, a 6% decrease from $6.42 in the prior year. Year-to-date diluted EPS was $12.16, a 39% decrease.
- 4The company ended the period with a substantial backlog of $80.0 billion as of June 30, 2022, providing visibility into future revenue.
- 5Operating income for Q2 2022 was $954 million, down 9% year-over-year. The operating margin rate decreased to 10.8% from 11.4% in the prior year.
- 6Space Systems segment showed growth with an 8% increase in sales for Q2 2022 and an 11% increase year-to-date, driven by development programs and specific contracts.
- 7The company continued to return capital to shareholders, repurchasing $640 million of its stock in the first half of 2022 and increasing its quarterly dividend by 10%.