Northrop Grumman Q2 Earnings: Revenue, EPS Top Estimates As Global Demand Increases

Northrop Grumman Corp NOC reported second-quarter financial results ahead of the market open on Tuesday. Here’s a look at the key metrics from the quarter.

Q2 Earnings: Defense contractor Northrop Grumman reported second-quarter revenue of $10.35 billion, beating analyst estimates of $10.11 billion, according to Benzinga Pro. The company reported second-quarter adjusted earnings of $7.11 per share, beating analyst estimates of $6.76 per share.

Total sales were up 1% on a year-over-year basis and 9% sequentially in the second quarter. Here’s a breakdown of revenue by category:

• Aeronautics Systems: $3.11 billion, up 2% year-over-year

• Defense Systems: $1.99 billion, up 7% year-over-year

• Mission Systems: $3.16 billion, up 14% year-over-year

• Space Systems: $2.65 billion, down 12% year-over-year

Northrop Grumman said operating cash flows decreased $567 million year-over-year and free cash flow declined $468 million, or 42%. The company reported total net awards of $7.4 billion in the quarter. Northrop Grumman ended the period with a total backlog of $89.7 billion.

"We are working with our customers to accelerate capability delivery to enable their vision of peace through strength. We continue to see growing demand globally for our broad range of product offerings, which resulted in 18% international sales growth in the quarter,” said Kathy Warden, chair, president and CEO of Northrop Grumman.

Outlook: Northrop Grumman narrowed its 2025 revenue guidance from a range of $42 billion to $42.5 billion to a new range of $42.05 billion to $42.25 billion. The company also raised its 2025 adjusted earnings guidance from a range of $24.95 to $25.35 per share to a new range of $25 to $25.40 per share. Analysts are forecasting full-year revenue of $42.11 billion and earnings of $25.21 per share, according to Benzinga Pro estimates.

Northrop Grumman’s management team will further discuss the quarter on a call with investors and analysts at 9:30 a.m. ET.

NOC Price Action: Northrop Grumman shares were up 3.44% at $531.01 at the time of publication Tuesday, according to Benzinga Pro.

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