Jun 30, 2020

Northrop Grumman Q2 2020 Earnings Report

Northrop Grumman's Q2 2020 financial performance showed sales and EPS growth, driven by strong demand and effective adaptation to challenging conditions.

Key Takeaways

Northrop Grumman reported a 5% increase in sales, reaching $8.9 billion, and a 17% increase in net earnings, amounting to $1.0 billion, or $6.01 per diluted share. The company also raised its 2020 guidance, expecting sales between $35.3 and $35.6 billion and free cash flow between $3.15 and $3.55 billion.

Net awards totaled $14.8 billion, resulting in a 1.7 book-to-bill ratio.

Total backlog increased to $70.0 billion.

Sales increased by 5 percent to $8.9 billion.

EPS increased by 19 percent to $6.01.

Total Revenue
$8.88B
Previous year: $8.46B
+5.1%
EPS
$6.01
Previous year: $5.06
+18.8%
Total Backlog
$70B
Gross Profit
$1.83B
Previous year: $1.73B
+5.5%
Cash and Equivalents
$4.18B
Previous year: $1.09B
+284.0%
Free Cash Flow
$2.07B
Previous year: $1.36B
+52.6%
Total Assets
$43.5B
Previous year: $39.6B
+9.8%

Northrop Grumman

Northrop Grumman

Northrop Grumman Revenue by Segment

Forward Guidance

The company is increasing its 2020 financial guidance based on year-to-date performance and its most current outlook for the remainder of the year. The company’s 2020 financial guidance reflects the impacts experienced to date from the global COVID-19 pandemic.

Revenue & Expenses

Visualization of income flow from segment revenue to net income