Summary
Northrop Grumman Corporation (NOC) reported solid third-quarter 2025 results, with total sales increasing by 4% to $10.42 billion, driven by growth across multiple segments, particularly Mission Systems and Defense Systems. Net earnings saw a healthy 7% increase to $1.10 billion, translating to diluted earnings per share of $7.67, up 10% year-over-year. This performance reflects effective cost management and favorable contract adjustments, though the year-to-date net earnings show a 5% decline primarily due to a significant B-21 program loss provision in Q1 2025. The company's financial position remains robust, with total assets and liabilities largely stable. Significant capital deployment activities include $1.17 billion in common stock repurchases and $964 million in dividends paid year-to-date. The company also secured a new $3.0 billion revolving credit facility. Despite ongoing geopolitical uncertainties and potential impacts from government shutdowns, Northrop Grumman's substantial backlog of $91.4 billion provides visibility for future revenue. Investors should monitor the progression of major programs like B-21 and Sentinel, as well as the broader defense spending environment.
Financial Highlights
51 data points| Revenue | $10.42B |
| Operating Expenses | $9.18B |
| Operating Income | $1.24B |
| Net Income | $1.10B |
| EPS (Basic) | $7.69 |
| EPS (Diluted) | $7.67 |
| Shares Outstanding (Basic) | 143.10M |
| Shares Outstanding (Diluted) | 143.50M |
Key Highlights
- 1Total sales for Q3 2025 increased by 4% to $10.42 billion, with year-to-date sales remaining comparable to the prior year.
- 2Net earnings for Q3 2025 rose 7% to $1.10 billion, resulting in diluted EPS of $7.67 (up 10% year-over-year).
- 3Operating income for Q3 2025 increased 11% to $1.24 billion, driven by segment performance and favorable contract adjustments.
- 4The company's backlog stood strong at $91.4 billion as of September 30, 2025, providing a significant revenue runway.
- 5Northrop Grumman completed the sale of its training services business, recording a pre-tax gain of $231 million year-to-date.
- 6Year-to-date net cash provided by operating activities decreased by 52% to $860 million, largely due to higher net cash taxes and working capital changes.
- 7Shareholder returns were evident through $1.17 billion in common stock repurchases and $964 million in dividends paid year-to-date.