Summary
Northrop Grumman Corporation reported a solid increase in sales for the second quarter of 2025, reaching $10.35 billion, up 1% year-over-year, driven by growth in Mission Systems, Defense Systems, and Aeronautics Systems. While total sales for the six months ended June 30, 2025, saw a slight decrease of 3% to $19.82 billion, this was primarily attributed to the wind-down of certain space programs. Net earnings for the quarter showed a significant 25% increase to $1.17 billion, or $8.15 per diluted share, benefiting from a $231 million pre-tax gain on the sale of its training services business and improved operational performance across segments. However, for the first half of the year, net earnings decreased by 12% to $1.66 billion, largely impacted by a $477 million loss provision on the B-21 program in the first quarter. The company's backlog remains robust at $89.7 billion as of June 30, 2025, providing visibility into future revenues. Despite a challenging operating environment marked by geopolitical instability and economic pressures, Northrop Grumman's strategic positioning and operational execution, including a favorable EAC adjustment on the Sentinel program, demonstrate resilience.
Financial Highlights
51 data points| Revenue | $10.35B |
| Operating Expenses | $9.16B |
| Operating Income | $1.43B |
| Net Income | $1.17B |
| EPS (Basic) | $8.17 |
| EPS (Diluted) | $8.15 |
| Shares Outstanding (Basic) | 143.70M |
| Shares Outstanding (Diluted) | 144.00M |
Key Highlights
- 1Total sales for Q2 2025 increased by 1% to $10.35 billion, driven by growth in Mission Systems, Defense Systems, and Aeronautics Systems.
- 2Net earnings for Q2 2025 surged by 25% to $1.17 billion ($8.15 per diluted share), boosted by a $231 million gain from the sale of the training services business.
- 3A $477 million loss provision for the B-21 program in Q1 2025 negatively impacted the six-month net earnings, contributing to a 12% year-over-year decrease to $1.66 billion.
- 4The company reported a strong backlog of $89.7 billion as of June 30, 2025, indicating significant future revenue potential.
- 5Operating income for Q2 2025 increased by 31% to $1.425 billion, largely due to the gain on sale and improved segment performance.
- 6The company received a $76 million favorable EAC adjustment on the Sentinel program's EMD phase, reflecting improved expectations for contract incentives.
- 7Cash used in operating activities for the first six months of 2025 was $697 million, compared to $719 million provided in the prior year, primarily due to higher tax payments and increased working capital needs.