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Jun 30, 2025
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
Revenue by Segment
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
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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