Northrop Grumman reported strong third quarter 2025 results with increased sales, operating income, and EPS, leading to a raise in full-year EPS guidance. The company highlighted continued strong demand and its ability to innovate and deliver quality products.
Sales increased 4% to $10.4 billion, driven by strong demand.
positiveDiluted EPS increased 10% to $7.67.
positiveOperating margin rate improved to 11.9% from 11.2%.
positiveSegment operating margin rate increased to 12.3% from 11.5%.
positiveNet awards increased to $12.2 billion, with a book-to-bill ratio of 1.17.
positiveFree cash flow increased 72% to $1.26 billion.
positiveSpace Systems sales decreased 6% due to wind-down of certain programs.
attentionSpace Systems operating income decreased 14% due to lower margin rates.
attentionAeronautics Systems operating income decreased 1% due to a lower operating margin rate.
attentionEffective tax rate increased to 16.9% from 13.6% due to tax law changes and reduced credits.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
The momentum we are building in our business drove strong third quarter performance to achieve our financial objectives for mid-single-digit growth, expanding segment margins, and growing cash flows year over year.
As a result of this performance and our positive outlook for the remainder of the year, we are once again increasing our 2025 EPS guidance.
I am excited about our continued progress in responding with urgency to our customers’ needs.
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