Industrials · NYSE: NOC
Northrop Grumman: how the business works
Northrop Grumman builds the B-21 bomber, missiles, rocket motors, radars and satellites, mostly for the US government, with sales of $42.0 billion in FY2025.
By Hardik Bhandare · Checked against filings: . Editorial policy. Corrections
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Northrop Grumman Corporation · Falls Church, Virginia · Founded 1939
Updated for Q3 FY2026 · checked
- Sales, FY2025
- $42.0B
- Net income, FY2025
- $4.2B
- Share of sales from the US government, FY2025
- 83.9%
- Backlog, Sep 30, 2026
- $109.6B
- Employees, end of FY2025
- About 95,000
The short version
Northrop Grumman in 5 points
1 · What it sells
Northrop Grumman builds the B-21 bomber, the Sentinel missile, rocket motors, radars and satellites, with sales of $41,954 million in FY2025.
2 · Who pays it
In FY2025 the US government paid 83.9% of Northrop Grumman's sales, international customers 14.3% and other customers 1.9%.
3 · What it keeps from $100
Of every $100 that came in during FY2025, Northrop Grumman kept $9.63 as net income, helped by $1,068 million of pension benefits outside operations and a one-off $231 million gain, and its operating income was $10.75 per $100 of sales.
4 · Where the operating profit comes from
In FY2025, as Northrop Grumman measures segment profit, Mission Systems earned $1,827 million, Space Systems $1,183 million, Defense Systems $871 million and Aeronautics Systems $813 million after a $477 million B-21 loss provision.
5 · The one thing to watch
B-21 loss provisions have totaled about $2.0 billion since 2023, and $1.0 billion of expected B-21 losses was still accrued on Sep 30, 2026.
Sources: From Northrop Grumman's FY2025 10-K and Q3 FY2026 10-Q · checked
See the full receipt and the management scorecard below
01Where the money goes · FY2025
Where does $100 of Northrop Grumman's money go?
Northrop Grumman · FY2025
Receipt for every $100
| Cost of products | $62.9 |
|---|---|
| Cost of services | $14.7 |
| General and administrative | $9.3 |
| Interest on debt | $1.5 |
| Income tax | $2.0 |
| Kept as net income | $9.6 |
| Total | $100 |
Each line = amount ÷ total money in × 100. Lines may not add to exactly $100 because of rounding.
How this is worked out
Of every $100 that came in during FY2025 (sales $41,954 million + other income $1,453 million = $43,407 million). Cityfort calculation from FY2025 10-K. Other income includes $1,068 million of pension benefits outside operations ($541 million FAS pension benefit and a $527 million mark-to-market gain) and a one-off $231 million gain, together $2.99 per $100. Operating income was $10.75 per $100 of sales.
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02The business in one line
What does Northrop Grumman do?
The US government and allied governments pay Northrop Grumman to design, build and support aircraft, missiles, radars and space systems under long contracts; most of the money goes on materials, suppliers and labor, and what's left is profit.
- In FY2025 the US government paid 83.9% of Northrop Grumman's $41,954 million of sales, and international customers paid 14.3%.
- Product and service costs took $77.50 of every $100 that came in during FY2025, and Northrop Grumman kept $9.63 as net income.
03Who pays it
Who pays Northrop Grumman?
US government
84%
of revenue
Mostly the Department of War (the 10-K's name for the Department of Defense) and intelligence agencies. Sales were $35,183 million in FY2025. Space Systems sold 93% of its work to the US government.
International customers
14%
of revenue
Customers outside the US government, as the 10-K reports them. Sales were $5,990 million in FY2025.
Other customers
2%
of revenue
Sales of $781 million in FY2025.
- US government84%
- International customers14%
- Other customers2%
Customer concentration
The US government is one customer for 83.9% of FY2025 sales; its share was between 84% and 87% in each year from FY2021 to FY2025. No single country outside the US was more than 10% of sales.
- Largest customer
- 84%
04Why it makes money
Why does Northrop Grumman make money?
Long contracts make sales steady, but fixed-price programs like the B-21 can bring large losses.
Northrop Grumman works through a backlog of signed contracts: $95,681 million at Dec 31, 2025, of which $43,529 million was funded. Half of FY2025 sales came from cost-type contracts, which repay allowable costs plus a fee. The other half came from fixed-price contracts, where cost overruns cut profit, as with the B-21's $1,559 million loss provision in FY2023.
Operating income per $100 of sales
$9.8$10.8
FY2022 to FY2025
- The US government funds programs and signs multi-year contracts
- Contracts add to the backlog of future sales
- Engineers, plants and suppliers build and support the systems
- Sales are recognized as the work is done
- Costs above a fixed price become losses; savings add profit
- Profit pays for research, plants, dividends and buybacks
↺ Step 6 feeds back into step 1.
05Business segments · FY2025
Which businesses make up Northrop Grumman?
Aeronautics Systems
29%Military aircraft, led by the B-21 bomber. Segment operating income, as Northrop Grumman measures it, was $813 million in FY2025, a 6.3% margin (Cityfort calculation from the FY2025 10-K), after a $477 million B-21 loss provision. Revenue shares are of the four segments' $44,271 million, before $2,317 million of sales between segments.
Revenue $13.0B · Operating profit $813M
Defense Systems
18%Sentinel missile, rocket motors, ammunition and missile defense command systems. Segment operating income was $871 million in FY2025, a 10.9% margin. Sales grew $603 million in FY2025, including $224 million more from Sentinel.
Revenue $8.0B · Operating profit $871M
Mission Systems
28%Radars, electronic warfare, communications and submarine parts. Segment operating income was $1,827 million in FY2025, a 14.6% margin, the highest of the four. Sales grew $1.1 billion, mainly on restricted airborne radar programs.
Revenue $12.5B · Operating profit $1.8B
Space Systems
24%Satellites, interceptors and rocket boosters. Segment operating income was $1,183 million in FY2025, an 11.0% margin. Sales fell $960 million, $738 million of it from a restricted space program and the end of the Next Generation Interceptor work.
Revenue $10.8B · Operating profit $1.2B
How the mix changed
- Aeronautics Systems
- Defense Systems
- Mission Systems
- Space Systems
Revenue by segment, FY2023 to FY2025.
US$
See the numbers
06The numbers · Consolidated · US$
How has Northrop Grumman done?
Revenue
$42.0BFY2025
Sales rose every year from $35,667 million in FY2021 to $41,954 million in FY2025, and Q3 FY2026 sales were $11,122 million, up from $10,423 million a year earlier.
US$
See the numbers
Net profit
$4.2BFY2025
Net income swings with one-off items: FY2021's $7,005 million included a $1,980 million gain on selling the IT services business, and FY2023's $2,056 million followed a $1,559 million B-21 loss provision.
US$
See the numbers
Profit kept per $100 of revenue
$10.0FY2025
Net margin was 10.0% in FY2025, against 5.2% in FY2023 and 19.6% in FY2021, and pension gains or losses booked each fourth quarter move it every year.
$ of profit per $100 of revenue (net margin)
See the numbers
Free cash flow
$3.3BFY2025
Free cash flow (operating cash flow minus capital spending) rose from $1,466 million in FY2022 to $3,307 million in FY2025, and operating cash flow was negative in Q1 FY2025 and Q1 FY2026.
US$ · cash from operations minus spending on plants and equipment
See the numbers
See all yearly numbers
EBITDA here = operating income plus depreciation and amortization (from the cash flow statement). Fiscal years are the company's own (Fiscal year ends on December 31; quarters end on Mar 31, Jun 30 and Sep 30). Net profit is the share belonging to the company's owners.
Download Northrop Grumman's yearly and quarterly numbers (CSV, with source ids)
Learn: Stock-based compensation and dilution: pay that becomes shares
Sources (14)
- Form 10-K for fiscal 2023 (year ended Dec 31, 2023)
- Form 10-K for fiscal 2025 (year ended Dec 31, 2025)
- Q4 2024 earnings release (8-K Exhibit 99)
- Q4 2025 earnings release (8-K Exhibit 99)
- XBRL company facts (data.sec.gov API), CIK 0001133421
- Q1 2025 earnings release (8-K Exhibit 99)
- Q2 2025 earnings release (8-K Exhibit 99)
- Q3 2025 earnings release (8-K Exhibit 99)
- Q1 2026 earnings release (8-K Exhibit 99)
- Form 10-Q for Q1 2026 (quarter ended Mar 31, 2026)
- Q2 2026 earnings release (8-K Exhibit 99)
- Form 10-Q for Q2 2026 (quarter ended Jun 30, 2026)
- Q3 2026 earnings release (8-K Exhibit 99)
- Form 10-Q for Q3 2026 (quarter ended Sep 30, 2026)
07Who runs it
Who runs Northrop Grumman, and did they deliver?
Kathy J. Warden
Chair, Chief Executive Officer and President · since 2019
CEO and President since January 2019 and Chair since August 2019. Her 2025 total pay was $25,357,443, 224 times the median employee's. In August 2026 the board gave her a one-time grant of 35,910 target market stock units that pay 0–150% depending on the share-price change through Dec 31, 2031.
John Greene
Chief Financial Officer · since 2026
Became CFO on Jan 7, 2026, succeeding Kenneth Crews. He was previously CFO of Discover Financial.
Admiral Christopher W. Grady
Director · since 2026
Joined the board on Feb 12, 2026.
What they said, and what happened
2 missed · 1 delivered · 2 too early to tell
Said on Jan 30, 2025
Northrop Grumman said on Jan 30, 2025 that it expected FY2025 sales of $42.0–42.5 billion.
MissedWhat happened
FY2025 sales were $41,954 million, just below the range, in a year with a $477 million B-21 loss provision in Q1.
Said on Jan 30, 2025
Northrop Grumman said on Jan 30, 2025 that it expected FY2025 MTM-adjusted EPS, its own measure, of $27.85–28.25.
MissedWhat happened
MTM-adjusted EPS was $26.34; GAAP diluted EPS was $29.08.
Said on Jan 30, 2025
Northrop Grumman said on Jan 30, 2025 that it expected FY2025 free cash flowCash from operations minus spending on buildings and equipment. Learn more, its own measure, of $2,850–3,250 million.
DeliveredWhat happened
Free cash flow was $3,307 million, above the range.
Said on Jan 27, 2026
Northrop Grumman said on Jan 27, 2026 that it expected FY2026 sales of $43.5–44.0 billion.
Too early to tellWhat happened
It raised the range to $43.75–44.25 billion on Jul 21, 2026 and kept it on Oct 20. Sales in Q1 to Q3 FY2026 were $9,881 million, $10,876 million and $11,122 million.
Said on Oct 20, 2026
Northrop Grumman said it expects to invest about $2.5 billion over multiple years to expand B-21 production capacity, under a Q1 2026 agreement with the US Air Force.
Too early to tellWhat happened
A multi-year plan; the Q3 FY2026 10-Q gives no completion date.
Sources (10)
- 2026 proxy statement (DEF 14A)
- 8-K Item 5.02: one-time performance equity grant to CEO Kathy Warden
- 8-K Item 5.02: CFO transition (John Greene succeeds Kenneth Crews from Jan 7, 2026)
- 8-K Item 5.02: Admiral Christopher W. Grady elected to the board
- Q4 2024 earnings release (8-K Exhibit 99)
- Q4 2025 earnings release (8-K Exhibit 99)
- Q2 2026 earnings release (8-K Exhibit 99)
- Q3 2026 earnings release (8-K Exhibit 99)
- Q1 2026 earnings release (8-K Exhibit 99)
- Form 10-Q for Q3 2026 (quarter ended Sep 30, 2026)
08What could go wrong
What could go wrong for Northrop Grumman?
- Concentration
One customer pays most of the bills
The US government paid 83.9% of Northrop Grumman's FY2025 sales. The 10-K names changes in US government strategy, priorities and spending as its first risk factor.
Watch US defense budget decisions and the US government share of sales in the FY2026 10-K.
- Demand
Budget delays and shutdowns
The 10-K says delayed or reduced appropriations, continuing resolutions, government shutdowns or a breach of the debt ceiling could delay or cut payments and new contracts.
Watch Whether US defense appropriations pass on time.
- Execution
Losses on fixed-price programs
Half of FY2025 sales came from fixed-price contracts, where Northrop Grumman bears cost overruns. The B-21 brought loss provisions of $1,559 million in Q4 2023 and $477 million in Q1 2025, and $1.0 billion of expected B-21 losses was still accrued on Sep 30, 2026.
Watch B-21 estimate changes and program charges in each quarterly release.
- Other
Pension accounting moves profit
Northrop Grumman books pension gains or losses each fourth quarter: a $527 million gain in FY2025, after a $422 million loss in FY2023. A non-operating pension benefit added another $541 million in FY2025.
Watch The mark-to-market pension result in the Q4 FY2026 release.
- Legal
Environmental cleanup at Bethpage
The environmental accrual was $554 million on Sep 30, 2026, with a reasonably possible $403 million more, and the company faces lawsuits and a putative class action over Bethpage, New York contamination. Of the accrual, $511 million is recorded as recoverable through government overhead costs.
Watch Changes in the environmental accrual and the Bethpage lawsuits in the 10-Q legal notes.
- Regulation
Procurement rules and executive orders
The 10-K lists changes in procurement laws and executive orders as a risk, including an order that seeks to limit share repurchases and dividends by government defense contractors.
Watch New executive orders or contract terms for defense contractors.
09Both sides
What do supporters and critics point to?
What supporters point to
- Backlog was $109,597 million on Sep 30, 2026, up from $95,681 million on Dec 31, 2025.
- Net awards were 1.5 times sales in Q3 FY2026, including $2.0 billion for Sentinel.
- Free cash flow was $3,307 million in FY2025, above the company's January 2025 range of $2,850–3,250 million.
- The quarterly dividend was raised 7% to $2.47 in May 2026, and dividends declared per share rose every year from FY2021 to FY2025.
What critics point to
- B-21 loss provisions totaled about $2.0 billion, and $1.0 billion of expected losses was still accrued on Sep 30, 2026.
- The US government paid 83.9% of FY2025 sales.
- Space Systems sales fell from $11,731 million in FY2024 to $10,771 million in FY2025.
- FY2025 sales of $41,954 million came in below the company's January 2025 range of $42.0–42.5 billion.
- Net income includes large pension items: $1,068 million of pension benefits outside operations in FY2025.
10What to watch next
What should you watch next at Northrop Grumman?
Next event
Q4 FY2026 results
Date not announced yet.
B-21 production expansion
Northrop Grumman expects to invest about $2.5 billion over multiple years; $1.0 billion of expected B-21 losses was accrued on Sep 30, 2026.
FY2026 results against the company's range
On Oct 20, 2026 Northrop Grumman said it expects FY2026 sales of $43.75–44.25 billion; sales were $9,881 million, $10,876 million and $11,122 million in Q1 to Q3.
Share repurchases
Northrop Grumman repurchased no shares in Q2 or Q3 2026, and $2.5 billion of its authorization was unused on Sep 30, 2026.
11Key facts
Key facts about Northrop Grumman
- What does Northrop Grumman do?
- Northrop Grumman designs and builds military aircraft such as the B-21 Raider bomber, missiles and rocket motors, radars and electronic warfare systems, and satellites, mainly for the US military and intelligence agencies. Its sales were $41,954 million in FY2025.
- How does Northrop Grumman make money?
- Northrop Grumman makes money on long contracts to develop, build and support defense and space systems. In FY2025, 83.9% of its $41,954 million of sales came from the US government. Half of FY2025 sales came from cost-type contracts, which repay allowable costs plus a fee, and half from fixed-price contracts.
- Is Northrop Grumman profitable?
- Yes. Northrop Grumman's net income was $4,182 million in FY2025 and $4,174 million in FY2024, after $2,056 million in FY2023, when it booked a $1,559 million loss provision on the B-21 bomber. Its net income was $1,124 million in Q3 FY2026.
- What is Northrop Grumman's revenue by segment?
- Northrop Grumman had $41,954 million of sales in FY2025. Aeronautics Systems brought in $12,992 million, Mission Systems $12,506 million, Space Systems $10,771 million and Defense Systems $8,002 million, before $2,317 million of sales between segments.
- Who are Northrop Grumman's customers?
- The US government paid 83.9% of Northrop Grumman's FY2025 sales, $35,183 million, mainly through the Department of War (the 10-K's name for the Department of Defense) and intelligence agencies. International customers paid $5,990 million, or 14.3%, and other customers $781 million.
- Who owns Northrop Grumman?
- Northrop Grumman has one class of common stock with one vote per share. Its 2026 proxy lists State Street with 9.8% as of Dec 31, 2023 and BlackRock with 7.5% as of Sep 30, 2024. Vanguard Capital Management reported 7.22% at Mar 31, 2026. Directors and executive officers held about 0.21% on Mar 20, 2026.
- What does Northrop Grumman's Aeronautics Systems segment sell?
- Northrop Grumman's Aeronautics Systems segment builds military aircraft: the B-21 Raider bomber, fuselage sections for the F-35, the E-130J TACAMO, the E-2, and the Triton and Global Hawk drones, plus B-2 support. Its sales were $12,992 million in FY2025.
- What does Northrop Grumman's Defense Systems segment sell?
- Northrop Grumman's Defense Systems segment works on the Sentinel intercontinental ballistic missile, the IBCS air and missile defense command system, ammunition, tactical rocket motors and missiles such as AARGM-ER. Its sales were $8,002 million in FY2025, up from $7,185 million in FY2023.
- What does Northrop Grumman's Mission Systems segment sell?
- Northrop Grumman's Mission Systems segment makes radars, including the F-35's fire control radar, electronic warfare and communications systems, and power and propulsion parts for Virginia-class and Columbia-class submarines. Its sales were $12,506 million in FY2025, up from $11,399 million in FY2024.
- What does Northrop Grumman's Space Systems segment sell?
- Northrop Grumman's Space Systems segment builds satellites and payloads, missile-defense interceptors, solid rocket boosters for launch vehicles and Trident II missiles, and the Cygnus cargo spacecraft. Its sales were $10,771 million in FY2025, down from $11,731 million in FY2024.
Terms on this page
- Backlog
- Capital expenditures (capex)
- Customer concentration
- Debt-to-equity
- Earnings per share (EPS)
- EBITDA
- Free cash flow
- Interest coverage
- Market cap
- Net debt
Each explains the term in plain English, with the same number from other companies on Cityfort.
Go deeper
More detail from the same filings. Open any section.
12What it sells
12What it sells
What does Northrop Grumman sell?
Military aircraft (Aeronautics Systems)
The B-21 Raider long-range bomber, fuselage sections for the F-35, the E-130J TACAMO, the E-2, the Triton and Global Hawk drones, and B-2 support. About 40% of the segment's work is classified. Sales were $12,992 million in FY2025.
Missiles and rocket motors (Defense Systems)
The Sentinel intercontinental ballistic missile, the IBCS air and missile defense command system, ammunition, tactical rocket motors, and missiles such as AARGM-ER. Sales were $8,002 million in FY2025.
Radars and electronics (Mission Systems)
Radars for the F-35 and other aircraft, electronic warfare, communications, and power and propulsion parts for Navy submarines. About 30% of the work is classified. Sales were $12,506 million in FY2025.
Satellites and launch (Space Systems)
Satellites and payloads, missile-defense interceptors, solid rocket boosters for launch vehicles and Trident II missiles, and the Cygnus cargo spacecraft. About 45% of the work is classified. Sales were $10,771 million in FY2025.
What it does
- Does: Builds and supports military aircraft, missiles, radars and space systems, mainly for the US government.
- Does: Works on classified (restricted) US programs in Aeronautics, Mission and Space Systems.
- Does: Makes solid rocket motors for missiles and space launch vehicles.
What it does not do
- Does not: Build ships: it spun off its shipbuilding business, Huntington Ingalls Industries, in 2011.
- Does not: Sell IT services: it sold that business to Veritas Capital in 2021 for $3.4 billion.
- Does not: Sell much to businesses or consumers: other customers were $781 million of FY2025 sales.
13How the money flows
13How the money flows · FY2025
How does money flow through Northrop Grumman?
Money in
- Product sales (aircraft, missiles, radars, satellites)$33.7B
- Service sales (support, upgrades, training)$8.2B
- Pension benefits outside operations ($1,068 million), a one-off business-sale gain ($231 million) and other income ($154 million)$1.5B
The company
Northrop Grumman
$43.4B came in
Money out
- Cost of products (materials, suppliers, labor and overhead)$27.3B
- Cost of services$6.4B
- General and administrative costs$4.0B
- Interest on debt$665M
- Income tax$886M
- Net income$4.2B
- In FY2025 customers paid Northrop Grumman $33.7 billion for products and $8.2 billion for services.
- Doing the work took $33.6 billion, and general and administrative costs $4.0 billion.
- After a $231 million gain on selling its training-services business, operating income was $4.5 billion, or $10.75 per $100 of sales.
- Pension benefits outside operations added $1.1 billion; interest took $0.7 billion and tax $0.9 billion.
- Northrop Grumman was left with $4.2 billion of net income.
14What it needs to run
14What it needs to run
What does Northrop Grumman need to run?
Engineers and cleared workers
About 95,000 employees at the end of FY2025, after about 7,500 hires that year. About 4,300 are covered by 15 union agreements. The 10-K names hiring people with security clearances as a risk.
Plants and sites
About 53 million square feet at 446 locations, mainly in the US, at Dec 31, 2025. Capital spending was $1,450 million in FY2025.
Suppliers
Purchase obligations to suppliers were $23.9 billion at Dec 31, 2025. The 10-K lists supplier performance as a risk factor.
B-21 production capacity
In Q1 2026 Northrop Grumman agreed with the US Air Force to expand B-21 production capacity and raise the production rate. It said it expects to invest about $2.5 billion over multiple years.
15Where it sells
15Where it sells · FY2025
Where does Northrop Grumman sell?
- United States86%
- Europe8%
- Asia/Pacific5%
- Other (mainly the Middle East)2%
16Competitors and what protects it
16Competitors and what protects it
Who does Northrop Grumman compete with?
Lockheed Martin
NYSE: LMT
Named in Northrop Grumman's FY2025 10-K as a competitor in defense, intelligence and federal civil markets.
Boeing
NYSE: BA
Named in Northrop Grumman's FY2025 10-K as a competitor in defense, intelligence and federal civil markets.
RTX Corporation
NYSE: RTX
Named in Northrop Grumman's FY2025 10-K as a competitor in defense, intelligence and federal civil markets.
General Dynamics
Named in Northrop Grumman's FY2025 10-K as a competitor in defense, intelligence and federal civil markets.
L3Harris Technologies
Named in Northrop Grumman's FY2025 10-K as a competitor in defense, intelligence and federal civil markets.
What protects the business
Each strength is scored 1 (weak) to 5 (strong) for the business, with the reason. It is not a rating of the share.
- Signed backlog4 of 5
Backlog was $109,597 million on Sep 30, 2026, up from $95,681 million on Dec 31, 2025; $50,095 million of it was funded.
- Programs that run for decades4 of 5
The B-21 contract dates from 2015 and the Sentinel development contract, worth $13.3 billion, from 2020. Both are long development and production programs.
- Classified work3 of 5
About 40% of Aeronautics, 30% of Mission Systems and 45% of Space Systems business is restricted (classified) programs, which need cleared staff and secure sites.
- Solid rocket motors3 of 5
Northrop Grumman makes solid rocket motors for Trident II missiles, the GMLRS rocket, tactical missiles and launch vehicles, and boosters for NASA's SLS rocket.
Weak spot
Fixed-price cost overruns
Half of FY2025 sales came from fixed-price contracts. B-21 loss provisions were $1,559 million in Q4 2023 and $477 million in Q1 2025, and Q1 and Q2 FY2026 brought unfavorable estimate changes of $71 million and $91 million on the GEM 63XL rocket booster.
17Where growth could come from
17Where growth could come from
Where could Northrop Grumman's growth come from?
Northrop Grumman said on Oct 20, 2026 that it expects FY2026 sales of $43.75–44.25 billion, up from its Jan 27, 2026 range of $43.5–44.0 billion. It also expects segment operating income of $4,940–5,040 million, MTM-adjusted EPS of $29.35–29.75 and adjusted free cash flow of $3.1–3.5 billion, all its own measures.
Sentinel missile program
Working+$180M Sentinel sales, Q3 FY2026
Defense Systems sales were $2,307 million in Q3 FY2026, up from $2,059 million a year earlier, with Sentinel adding $180 million. Q3 awards included $2.0 billion for Sentinel.
Status: Working, on track against what the company said.
B-21 Raider bomber
Mixed$1.0B loss accrual left, Sep 30, 2026
B-21 loss provisions totaled about $2.0 billion through Q1 2025. In Q1 2026 Northrop Grumman agreed with the US Air Force to raise production capacity and rate, and expects to invest about $2.5 billion over multiple years.
Status: Mixed, partly on track.
Radars (Mission Systems)
Working+$1.1B Mission sales, FY2025
Mission Systems sales rose from $11,399 million in FY2024 to $12,506 million in FY2025, mainly on restricted airborne radar programs.
Status: Working, on track against what the company said.
Space Systems
Mixed-$960M Space sales, FY2025
Space Systems sales fell from $11,731 million in FY2024 to $10,771 million in FY2025, mainly on a restricted program and the end of Next Generation Interceptor work. Q3 FY2026 Space sales were $2,749 million, against $2,698 million a year earlier.
Status: Mixed, partly on track.
New awards
Working1.5x book-to-bill, Q3 FY2026
Net awards were $16.4 billion in Q3 FY2026, 1.5 times sales, including $4.6 billion of restricted awards, $1.4 billion for Virginia-class submarines and $1.3 billion for the F-35.
Status: Working, on track against what the company said.
Status compares progress with what the company itself said it would do: Working = on track against what the company said; Mixed = partly on track; Behind = behind the company's own plan; New = recently announced; Early = too early to judge.
18The company's own measures (non-GAAP)
18The company's own measures · FY2025
What do Northrop Grumman's own measures show?
Official (GAAP): Operating income
$4.5B
Company's own measure: Segment operating income
$4.4B
The four segments' operating income less sales between segments, as Northrop Grumman reports it. It leaves out the FAS/CAS pension adjustment (+$258 million: the gap between pension cost under GAAP and pension cost the government reimburses under its cost accounting standards) and unallocated corporate items (−$124 million, including the $231 million business-sale gain).
Official (GAAP): Diluted EPS
$29.08
Company's own measure: MTM-adjusted EPS
$26.34
Diluted EPS without the mark-to-market (MTM) pension and retiree benefit gain or loss, which Northrop Grumman books each fourth quarter, and its tax effect. FY2024: $26.08 against GAAP EPS of $28.34.
Official (GAAP): Net cash from operating activities
$4.8B
Company's own measure: Free cash flow
$3.3B
Cash from operations minus capital expenditures ($1,450 million), the company's definition through FY2025, the same as this page's.
Official (GAAP): Net cash from operating activities, Q3 FY2026
$1.7B
Company's own measure: Adjusted free cash flow, Q3 FY2026
$1.8B
From Q2 FY2026 Northrop Grumman reports adjusted free cash flow: cash from operations minus capital spending, plus proceeds from selling equipment to a customer ($371 million in Q3 FY2026) and after-tax discretionary pension contributions. Plain free cash flow was $1,439 million in Q3 FY2026.
Official (GAAP): Remaining performance obligations (the same figure)
$95.7B
Company's own measure: Backlog
$95.7B
Signed work not yet recognized as sales, which Northrop Grumman reports as its remaining performance obligationsSigned contracts with customers that have not been billed yet.; $43,529 million was funded. It leaves out unexercised options and orders not yet placed under IDIQ contracts. Net awards were $46.3 billion in FY2025. Backlog was $109,597 million on Sep 30, 2026.
These are the company's own measures, defined by the company. They are not comparable across companies, and they are not added together. Each sits beside the nearest official (GAAP) figure.
Learn: Non-GAAP measures: what a company's "adjusted" numbers leave out
19Financial strength and debt
19Financial strength · Sep 30, 2026
How much debt does Northrop Grumman have?
- Total debt$15.2B
- Cash and investments$3.7B
- Net debt (debt minus cash)$11.5B
- Net worth (shareholders' money)$18.7B
- Debt to equity
- 0.81×
- $ of debt for every $1 of shareholders' money
- Interest cover
- 6.8×
- how many times operating profit covers interest
- Debt on Sep 30, 2026 was $15,197 million of long-term notes, including $764 million due within a year. At Dec 31, 2025 it was mostly fixed-rate notes and debentures, maturing between 2026 and 2054.
- Net debt = $15,197 million − $3,744 million of cash = $11,453 million (Cityfort calculation from Q3 FY2026 10-Q).
- Debt to equity = $15,197 million ÷ shareholders' equity of $18,683 million = 0.81 (Cityfort calculation from Q3 FY2026 10-Q).
- Interest cover = FY2025 operating income of $4,511 million ÷ interest expense of $665 million = 6.8 (Cityfort calculation from FY2025 10-K).
- Northrop Grumman paid $527 million of long-term debt in the first nine months of FY2026, the same amount as the notes the FY2025 10-K lists as maturing in 2026.
- A $3.0 billion revolving credit facility was undrawn and no commercial paper was outstanding at Dec 31, 2025. The facility requires debt of no more than 65% of total capitalization.
20Who owns it
20Who owns it · ownership as of Mar 20, 2026
Who owns Northrop Grumman?
- Officers and directors (as a group), shares
- 0.2%
Share classes
Holders of 5% or more
From the company's proxy statement (DEF 14A), later Schedule 13G filings and the share counts on its latest annual or quarterly report. Each holder row shows the date of its own filing.
Insider trades · Form 4 data as of Nov 6, 2026
What did Northrop Grumman's insiders report trading?
Northrop Grumman's insiders made 51 Form 4A filing an insider must make within two business days of buying or selling the company's shares. Learn more filings in the 12 months to Nov 6, 2026.
They reported no purchases and 66 sales (38,829.56 shares) in the open market or privately (codes P and S).
54 of the 66 sales were on forms with the Rule 10b5-1 plan box checked.
The same filings report 51 other share transactions (A: 19, F: 16, M: 16).
They also report 33 transactions in options, stock units or other derivatives.
Insiders are a company's officers, directors and owners of more than 10% of a class of its shares. Most changes in their holdings must be reported to the SEC on a Form 4 within two business days. Source: SEC Form 4 filings on EDGAR.
- P
- a purchase in the open market or privately
- S
- a sale in the open market or privately
- A
- a grant, award or other acquisition from the company under Rule 16b-3
- F
- shares withheld or handed over to pay an exercise price or tax when an award is received, exercised or vests
- M
- exercise or conversion of an option or other derivative, exempt under Rule 16b-3
Code meanings: General Instruction 8 of Form 4 (SEC).
The latest 25 of 117 transactions
Shares: A = acquired, D = disposed of. A price the filing gives only in a footnote shows as “See filing”. The 10b5-1 box is checked when at least one trade on the form was made under a Rule 10b5-1 plan. A Form 4/A replaces the form it amends. See all of Northrop Grumman's Form 4 filings on EDGAR.
Learn: How to read a proxy statement (DEF 14A): Nvidia's 2026 proxy · Form 4 insider filings: who files, the codes and the footnotes · Rule 10b5-1 trading plans: how insiders pre-schedule their trades
Sources (6)
- Form 10-Q for Q3 2026 (quarter ended Sep 30, 2026)
- 2026 proxy statement (DEF 14A)
- Schedule 13G by Vanguard Capital Management (as of Mar 31, 2026)
- Schedule 13G/A by The Vanguard Group (event Mar 13, 2026)
- Schedule 13G/A by Capital International Investors (as of Jun 30, 2026)
- Schedule 13G/A by Capital International Investors (as of Mar 31, 2026)
21What it does with profit
21What it does with profit
What does Northrop Grumman do with its profit?
Dividend per share
$8.99FY2025
Dividend paid for each share, by financial year.
$ per share
See the numbers
Buyback · Dec 31, 2021
Share repurchases in FY2021
$3.7B
Buyback · Dec 31, 2022
Share repurchases in FY2022
$1.5B
Buyback · Dec 31, 2023
Share repurchases in FY2023
$1.5B
Buyback · Dec 31, 2024
Share repurchases in FY2024
$2.5B
Buyback · Dec 31, 2025
Share repurchases in FY2025
$1.6B
22Governance signals
22Governance signals
What do Northrop Grumman's governance filings show?
- Auditor
- Deloitte & Touche LLP, since 1975
- Auditor changes
- None in the period covered
- Audit qualifications
- None reported
- Related-party dealings
- The 2026 proxy reports that in 2025 Northrop Grumman's benefit plan trusts paid State Street subsidiaries about $5.3 million and a BlackRock subsidiary about $255,000 for investment management. Both are large shareholders. Total fees to Deloitte were $22.40 million in 2025, $21.92 million of it audit fees.
- Credit rating
- Moody's / S&P / Fitch (expected ratings in the May 28, 2025 note term sheet) Baa1 / BBB+ / BBB+ (Positive / Stable / Stable), May 28, 2025
A credit rating describes the company's ability to repay debt. It is not a rating of the share.
Flags to know about
regulatory · Oct 20, 2026
Pension cost accounting inquiry
In 2019 the Defense Contract Management Agency (DCMA) raised questions about an interest-rate assumption Northrop Grumman used to set its pension expense under government Cost Accounting Standards for 2013–2019. On Feb 15, 2024 the DCMA sent an interim, non-final determination of noncompliance. The Justice Department, which sent a criminal subpoena on Dec 9, 2022 and a civil investigative demand on Feb 2, 2023, confirmed on May 20, 2026 that its Criminal Division had closed its inquiry. The company says it continues to engage with the government on the civil investigative demand and the DCMA inquiry.
other · Oct 20, 2026
Bethpage, New York contamination
Northrop Grumman is cleaning up legacy contamination near former Navy and Grumman sites in Bethpage, New York, and faces individual lawsuits and a putative class action. Its environmental accrual was $554 million on Sep 30, 2026, and it estimates a reasonably possible $403 million more.
other · Jan 27, 2026
Executive order on defense contractors
Northrop Grumman's FY2025 10-K risk factors cite an executive order applicable to government defense contractors which, the company says, seeks among other things to limit their share repurchases and dividends.
shares as collateral · Apr 3, 2026
Insiders' shares as collateral or hedged
The 2026 proxy says none of the shares held by directors are used as collateral. Company policy bars directors, officers and certain employees from hedging company stock or using it as collateral.
disclosure
Classified programs limit what is disclosed
About 40% of Aeronautics, 30% of Mission Systems and 45% of Space Systems business is restricted (classified). The filings give no sales by program, including the B-21 and Sentinel.
23What the market paid
23What the market paid · price as of Nov 5, 2026
What did the market pay for Northrop Grumman on Nov 5, 2026?
Price as of Nov 5, 2026 (shown for education; prices change daily).
Closing price of $525.25 on Nov 5, 2026, from Nasdaq's historical price table for NOC. Northrop Grumman's shares are listed on the NYSE. Market value (Cityfort calculation from the Nov 5, 2026 closing price and the Q3 FY2026 10-Q) = $525.25 × 142,064,489 shares on the Q3 FY2026 10-Q cover (Oct 15, 2026) = $74,619 million. P/E = $525.25 ÷ FY2025 diluted EPS of $29.08 = 18.1: what buyers paid for each dollar of FY2025 profit per share. P/B = market value ÷ shareholders' equity of $18,683 million on Sep 30, 2026 = 4.0.
- Share price
- $525.25
- Market value (market cap)
- $74.6B
- P/E
- 18.1×
- P/B
- 4×
More price-based ratios · as of Nov 5, 2026
Each ratio divides a number from the company's filings by the market value or share price on Nov 5, 2026. Prices change daily, so these ratios do too.
Price to sales (P/S)
1.7×
$74.6B market value ÷ $43.6B revenue (four quarters to Sep 30, 2026) = 1.7×
Cityfort calculation from the Nov 5, 2026 closing price and the Q4 FY2025 to Q3 FY2026 10-Qs and earnings releases. Source: NOC historical prices, Oct 29 to Nov 5, 2026; Form 10-Q for Q3 2026 (quarter ended Sep 30, 2026); Form 10-K for fiscal 2025 (year ended Dec 31, 2025) and 8 more
How price ratios workDividend yield
1.71%
$8.99 dividends per share (FY2025) ÷ $525.25 share price = 1.71%
Cityfort calculation from the FY2025 filing and the Nov 5, 2026 closing price. Source: NOC historical prices, Oct 29 to Nov 5, 2026; Form 10-Q for Q3 2026 (quarter ended Sep 30, 2026); Form 10-K for fiscal 2025 (year ended Dec 31, 2025) and 2 more
What dividend yield meansFree cash flow yield
4.4%
$3.3B free cash flow (FY2025) ÷ $74.6B market value = 4.4%
Cityfort calculation from the FY2025 10-K and the Nov 5, 2026 closing price. Source: NOC historical prices, Oct 29 to Nov 5, 2026; Form 10-Q for Q3 2026 (quarter ended Sep 30, 2026); Form 10-K for fiscal 2025 (year ended Dec 31, 2025) and 1 more
What free cash flow means
Shares used for the market value: 142.06 million ($525.25 × 142.06 million shares ≈ $74.6B). Source: Form 10-Q for Q3 2026 (quarter ended Sep 30, 2026); 2026 proxy statement (DEF 14A)
Source: NOC historical prices, Oct 29 to Nov 5, 2026; Form 10-Q for Q3 2026 (quarter ended Sep 30, 2026); Form 10-K for fiscal 2025 (year ended Dec 31, 2025) and 1 more
Sources (12)
- NOC historical prices, Oct 29 to Nov 5, 2026
- Form 10-Q for Q3 2026 (quarter ended Sep 30, 2026)
- Form 10-K for fiscal 2025 (year ended Dec 31, 2025)
- EDGAR submissions record, CIK 0001133421 (name, ticker, exchange, SIC, fiscal year end, filing list)
- Q4 2025 earnings release (8-K Exhibit 99)
- XBRL company facts (data.sec.gov API), CIK 0001133421
- Q1 2026 earnings release (8-K Exhibit 99)
- Form 10-Q for Q1 2026 (quarter ended Mar 31, 2026)
- Q2 2026 earnings release (8-K Exhibit 99)
- Form 10-Q for Q2 2026 (quarter ended Jun 30, 2026)
- Q3 2026 earnings release (8-K Exhibit 99)
- 2026 proxy statement (DEF 14A)
24How it got here
24How it got here
How did Northrop Grumman get here?
1939
Milestone
Northrop Aircraft founded
The company began in 1939 in Hawthorne, California, as Northrop Aircraft Incorporated.
1994
Business-model change
Grumman acquired
Northrop bought Grumman in 1994, forming Northrop Grumman.
2002
Business-model change
Litton, Newport News and TRW
Northrop Grumman acquired Litton Industries and Newport News Shipbuilding in 2001 and TRW in 2002.
2011
Business-model change
Shipbuilding spun off
Northrop Grumman spun off Huntington Ingalls Industries, its former shipbuilding business, in 2011.
2015
Milestone
B-21 bomber contract
The US Air Force awarded Northrop Grumman the B-21 contract: a development contract plus five largely fixed-price options for early production aircraft.
2018
Business-model change
Orbital ATK acquired
Northrop Grumman bought Orbital ATK in 2018, adding solid rocket motors and space launch work.
2021
Business-model change
IT services business sold
Northrop Grumman sold its IT services business to Veritas Capital for $3.4 billion in cash, booking a $1,980 million gain in FY2021.
2023
Crisis
B-21 loss provision
A $1,559 million loss provision on B-21 early production lots in Q4 2023 cut FY2023 net income to $2,056 million.
2026
Milestone
B-21 production expansion
In Q1 2026 Northrop Grumman agreed with the US Air Force to expand B-21 production capacity and raise the production rate, with about $2.5 billion of its own investment expected over multiple years.
25Sources and changes
Where every number on this page comes from
Sources (25 documents)
- S1Form 10-K for fiscal 2025 (year ended Dec 31, 2025) · Northrop Grumman Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Jan 27, 2026
- S2Form 10-K for fiscal 2023 (year ended Dec 31, 2023) · Northrop Grumman Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Jan 25, 2024
- S3Form 10-Q for Q3 2026 (quarter ended Sep 30, 2026) · Northrop Grumman Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Oct 20, 2026
- S4Form 10-Q for Q2 2026 (quarter ended Jun 30, 2026) · Northrop Grumman Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Jul 21, 2026
- S5Form 10-Q for Q1 2026 (quarter ended Mar 31, 2026) · Northrop Grumman Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Apr 21, 2026
- S6Q4 2024 earnings release (8-K Exhibit 99) · Northrop Grumman Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Jan 30, 2025
- S7Q1 2025 earnings release (8-K Exhibit 99) · Northrop Grumman Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Apr 22, 2025
- S8Q2 2025 earnings release (8-K Exhibit 99) · Northrop Grumman Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Jul 22, 2025
- S9Q3 2025 earnings release (8-K Exhibit 99) · Northrop Grumman Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Oct 21, 2025
- S10Q4 2025 earnings release (8-K Exhibit 99) · Northrop Grumman Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Jan 27, 2026
- S11Q1 2026 earnings release (8-K Exhibit 99) · Northrop Grumman Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Apr 21, 2026
- S12Q2 2026 earnings release (8-K Exhibit 99) · Northrop Grumman Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Jul 21, 2026
- S13Q3 2026 earnings release (8-K Exhibit 99) · Northrop Grumman Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Oct 20, 2026
- S142026 proxy statement (DEF 14A) · Northrop Grumman Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Apr 3, 2026
- S15Schedule 13G/A by The Vanguard Group (event Mar 13, 2026) · The Vanguard Group (SEC EDGAR) · Tier 1: company or exchange filing · Mar 27, 2026
- S16Schedule 13G by Vanguard Capital Management (as of Mar 31, 2026) · Vanguard Capital Management (SEC EDGAR) · Tier 1: company or exchange filing · Apr 30, 2026
- S17Schedule 13G/A by Capital International Investors (as of Mar 31, 2026) · Capital International Investors (SEC EDGAR) · Tier 1: company or exchange filing · May 14, 2026
- S18Schedule 13G/A by Capital International Investors (as of Jun 30, 2026) · Capital International Investors (SEC EDGAR) · Tier 1: company or exchange filing · Aug 12, 2026
- S198-K Item 5.02: CFO transition (John Greene succeeds Kenneth Crews from Jan 7, 2026) · Northrop Grumman Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Nov 6, 2025
- S208-K Item 5.02: Admiral Christopher W. Grady elected to the board · Northrop Grumman Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Feb 13, 2026
- S218-K Item 5.02: one-time performance equity grant to CEO Kathy Warden · Northrop Grumman Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Aug 21, 2026
- S22Free writing prospectus: pricing term sheet for 4.65% notes due 2030 and 5.25% notes due 2035 · Northrop Grumman Corporation (SEC EDGAR) · Tier 1: company or exchange filing · May 28, 2025
- S23XBRL company facts (data.sec.gov API), CIK 0001133421 · SEC EDGAR · Tier 1: company or exchange filing · Nov 7, 2026
- S24NOC historical prices, Oct 29 to Nov 5, 2026 · Nasdaq · Tier 1: company or exchange filing · Nov 5, 2026
- S25EDGAR submissions record, CIK 0001133421 (name, ticker, exchange, SIC, fiscal year end, filing list) · SEC EDGAR · Tier 1: company or exchange filing · Nov 7, 2026
Changes to this page (v1 · Nov 7, 2026)
- v1 · Nov 7, 2026First version. (first version)
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