Companies /Industrials

Northrop Grumman Corp

NYSE: NOC Aerospace & Defense
$545.07
▼ $4.88 (−0.89%) today
Markets closed · 5:06pm ET

Q1 2025 Earnings

Reported Apr 22, 2025, 6:45am ET · SEC source
$3.32
Miss −46.99%
EPS · est. $6.26
$9.5B
Miss −4.83%
Revenue · est. $9.9B
−8.7%
Trailing market
NOC vs S&P since report
5 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−8%−4%0+4%Apr 22Apr 23report 6:45am ETearnings+3.5%−4.0%
−8%−4%0+4%Apr 22Apr 23earnings+3.5%−4.0%
NOC −4.0%S&P 500 +3.5%
−5%0+5%Apr 22Apr 23report 6:45am ETearnings+4.3%−4.0%
−5%0+5%Apr 22Apr 23earnings+4.3%−4.0%
NOC −4.0%NASDAQ +4.3%
−5%0+5%+10%Apr 21Apr 29report 6:45am ETearnings+6.8%−1.1%
−5%0+5%+10%Apr 21Apr 29earnings+6.8%−1.1%
NOC −1.1%S&P 500 +6.8%
−5%0+5%+10%Apr 21Apr 29report 6:45am ETearnings+8.7%−1.1%
−5%0+5%+10%Apr 21Apr 29earnings+8.7%−1.1%
NOC −1.1%NASDAQ +8.7%
−12.66%
Day of report
+1.85%
Next session
+3.88%
One week
+1.90%
30 days

S&P 500 over the same 30 days: +10.59%.

Did NOC Beat Earnings? Q1 2025 Results

Northrop Grumman delivered a sharply disappointing first quarter, with diluted EPS of $3.32 falling 46.96% short of the $6.26 consensus estimate as a $477 million pre-tax loss provision on the B-21 Raider bomber's low-rate initial production program carved $2.74 per share from results. The charge, driven by higher manufacturing costs tied to a production ramp acceleration and rising procurement expenses across five LRIP options, pushed Aeronautics Systems to a negative operating margin of 6.5%, a stark reversal from 10.1% a year earlier. Revenue declined 6.6% year-over-year to $9.47 billion, reflecting two fewer working days and the ongoing wind-down of certain Space Systems programs. <a href="https://247wallst.com/investing/2025/07/22/live-northrop-grumman-up-3-after-releasing-earnings/">shares moved higher despite</a> the miss, with investors drawing some comfort from a record $92.80 billion backlog and $10.80 billion in new awards. The company reaffirmed 2025 sales guidance of $42.00–$42.50 billion but lowered its MTM-adjusted EPS outlook to $24.95–$25.35 from $27.85–$28.25, squarely reflecting the B-21 headwind.

Key Takeaways
  • B-21 LRIP $477 million pre-tax loss provision due to manufacturing process change and higher material costs
  • Space Systems wind-down of restricted space and Next Generation Interceptor programs reducing sales by $228 million
  • Two fewer working days in Q1 2025 vs. Q1 2024
  • Defense Systems Sentinel program ramp-up and higher military ammunition volumes
  • Mission Systems growth driven by SABR radar, electronic warfare, and marine systems
  • Record backlog of $92.8 billion reflecting strong global demand

“Global demand for our products remains strong, which is reflected in our record first quarter backlog, and we are making significant progress on our key programs.”

Northrop Grumman CEO, on the earnings call

Forward Guidance & Outlook

Northrop Grumman reaffirmed 2025 full-year sales guidance of $42.0–$42.5 billion and free cash flow guidance of $2.85–$3.25 billion. However, the company lowered segment operating income guidance to $4.2–$4.35 billion (from prior $4.65–$4.80 billion) and MTM-adjusted EPS guidance to $24.95–$25.35 (from prior $27.85–$28.25), reflecting the B-21 LRIP loss provision. Segment guidance: Aeronautics Systems sales expected at low $13 billion with low-to-mid 6% operating margin (prior mid-to-high 9%); Defense Systems at low $8 billion with mid-to-high 9% margin; Mission Systems at ~$12 billion with mid 14% margin; Space Systems at ~$11 billion with high 10% margin. The company's guidance does not assume impacts from any government shutdown or application of spending limits.

NOC YoY Financials

Q1 2025 vs Q1 2024 · SEC filings Q1 2024 Q1 2025
$0$3.0B$6.0B$9.0B$10.1B$9.5BRevenue$1.1B$573.0MOperating Income$944.1M$481.0MNet Income
$0$3.0B$6.0B$9.0BRevenueOperating IncomeNet Income

NOC Revenue by Segment

Aeronautics Systems$2.8B−8.0%
Mission Systems$2.8B+6.0%
Space Systems$2.6B−18.0%
Defense Systems$1.8B+4.0%

Figures from SEC filings and company reports. Not investment advice.