Loading...
•
Jun 30
Northrop Grumman Q2 2025 Earnings Report
Northrop Grumman reported solid Q2 2025 results with strong segment performance and EPS growth boosted by a divestiture gain.
Key Takeaways
Northrop Grumman delivered strong Q2 2025 results with revenue growth, higher operating income, and a significant EPS increase driven by the Training Services divestiture and solid performance across most segments.
Revenue grew to $10.35 billion, up from $10.22 billion last year
Diluted EPS rose to $8.15, boosted by divestiture gain
Operating income increased 31% to $1.43 billion
Free cash flow fell to $637 million from $1.1 billion last year
Northrop Grumman
Northrop Grumman
Northrop Grumman Revenue by Segment
Revenue by Segment
Aeronautics Systems Revenue
CapyFin.comDefense Systems Revenue
CapyFin.comMission Systems Revenue
CapyFin.comSpace Systems Revenue
CapyFin.com Forward Guidance
The company increased guidance for segment operating income, MTM-adjusted EPS, and free cash flow for FY25 while narrowing sales guidance.
Positive Outlook
- Increased guidance for segment operating income to $4.275-$4.375 billion
- MTM-adjusted EPS raised to $25.00-$25.40
- Free cash flow guidance increased to $3.05-$3.35 billion
- Global defense demand remains strong
- Balanced capital deployment with high shareholder returns expected
Challenges Ahead
- Free cash flow declined significantly in Q2
- Space Systems revenue decreased 12% year-over-year
- High dependence on U.S. government contracts
- Inflationary pressures and supply chain challenges remain risks
- Potential geopolitical and regulatory uncertainties could impact performance