Northrop Grumman Corporation reported a total sales increase of 4% for the third quarter of 2025, reaching $10.4 billion compared to $10.0 billion in the same period last year. The growth was primarily driven by higher sales in the Mission Systems, Defense Systems, and Aeronautics Systems segments, which offset a decline in the Space Systems segment. Operating income for the quarter rose to $1.24 billion, an 11% increase from $1.12 billion in the prior year, resulting in an operating margin of 11.9%, up from 11.2%. Net earnings also increased by 7% to $1.1 billion, translating to diluted earnings per share of $7.67, a 10% rise from $7.00 in the previous year.
In comparison to the previous fiscal period, Northrop Grumman's year-to-date sales remained relatively stable at $30.2 billion, slightly down from $30.3 billion in 2024. However, operating income for the nine months decreased by 1% to $3.24 billion, reflecting challenges such as a $477 million loss provision related to the B-21 program. The company also recorded a pre-tax gain of $231 million from the divestiture of its training services business, which was completed in May 2025 for $333 million. This divestiture contributed to a reduction in backlog by $150 million.
Operationally, Northrop Grumman's total backlog as of September 30, 2025, stood at $91.4 billion, with approximately 40% expected to be recognized as revenue over the next 12 months. The company reported a significant increase in net awards, totaling $12.2 billion for the third quarter, driven by new contracts in various sectors, including military ammunition and advanced microelectronics. The workforce remained stable, with no significant changes in employee headcount reported.
The filing also highlighted strategic realignments within the company, including the transfer of the Strategic Deterrent Systems division to the Defense Systems sector and the reorganization of the Strike and Surveillance Aircraft Solutions business unit to Aeronautics Systems. These changes are aimed at enhancing operational efficiency and aligning resources with market demands. Looking ahead, Northrop Grumman anticipates continued growth driven by increased defense spending and ongoing demand for advanced technologies, although it remains cautious about potential impacts from macroeconomic factors and geopolitical tensions.
About NORTHROP GRUMMAN CORP /DE/
Northrop Grumman is a leading aerospace and defense technology company providing space systems, military aircraft, missile defense, mission systems, and advanced electronics. Serving primarily the U.S. government and international customers, it offers integrated solutions for national security, including stealth aircraft, satellites, missile interceptors, and cyber capabilities. Its business model focuses on long-term government contracts, innovation, and technological leadership in defense and space markets.
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