Northrop Grumman on Tuesday posted higher sales and net income in its third quarter driven by top-line gains across its businesses and bottom-line increases in three of them.
Net income rose 2% to just over $1.12 billion, $7.89 earnings per share (EPS), from $1.1 billion (7.67 EPS) a year ago, handily beating consensus estimates of $7.20 EPS. Sales increased 7% to $11.1 billion from $10.4 billion.
The company didn’t report any charges that dampened results in the first half of the year, namely on the Stand-in Attack Weapon.
Sales drivers included the F-35 fighter, B-21 and B-2 stealth bombers, the Sentinel intercontinental ballistic missile, solid rocket motors, including for the Extended Range Guided Multiple Launch Rocket System, classified radar and space programs, and marine systems.
The B-21 program is “performing very well” and is reducing risk development risk as testing milestones are achieved, Kathy Warden, Northrop Grumman’s chairwoman, president and CEO, said during the company’s earnings call.
Higher earnings were driven by improved segment operating performance and lower tax rate. Segment operating margin fell 20 basis points to 12.1%.
So far this year, sales are up 5% to $31.9 billion and net income is up 12% to $3.1 billion (21.72 EPS).
Sales and free cash flow guidance for 2026 were left unchanged while the outlook for segment operating income is higher as is adjusted earnings, now forecast to be between $29.35 and $29.75 EPS versus the prior outlook of $28.60 to $29.10 due to improved operating performance at the Aeronautics and Mission Systems segments.
Exchange Monitor affiliate Defense Daily first published a version of this story.
