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Sep 30, 2024
Northrop Grumman Q3 2024 Earnings Report
Northrop Grumman's Q3 2024 financial results were reported, featuring increased sales and earnings per share.
Key Takeaways
Northrop Grumman reported a 2% increase in sales to $10.0 billion for Q3 2024 compared to $9.8 billion in Q3 2023. Net earnings increased to $1.0 billion, or $7.00 per diluted share, from $937 million, or $6.18 per diluted share, in the same period last year. The company also raised its 2024 segment operating income and MTM-adjusted EPS guidance.
Net awards totaled $11.7 billion, leading to a record backlog of $85 billion.
Q3 sales reached $10.0 billion, with year-to-date sales up by 6 percent.
Operating margin rate was 11.2 percent, and the segment operating margin rate was 11.5 percent.
Diluted earnings per share increased by 13 percent to $7.00.
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
Northrop Grumman raised the lower end of its 2024 segment operating income guidance and increased MTM-adjusted EPS guidance by 75 cents to $25.65 - $26.05.
Positive Outlook
- Sales are expected to be between $41.0 billion and $41.4 billion.
- Segment operating income is projected to be between $4.525 billion and $4.575 billion.
- MTM-adjusted EPS is guided to be in the range of $25.65 to $26.05.
- Free cash flow is estimated to be between $2.25 billion and $2.65 billion.
- Aeronautics Systems sales are expected to be around $12 billion with an operating margin rate of approximately 10%.
Challenges Ahead
- Defense Systems sales are expected to be high $8 billion with an operating margin rate of approximately 10%.
- Mission Systems sales are expected to be mid $11 billion with a high 13% operating margin rate.
- Space Systems sales are expected to be mid to high $11 billion with a mid to high 10% operating margin rate.
- Intersegment Eliminations are expected to be around ~$2.7 billion with a low 13% operating margin rate.
- Guidance does not reflect impacts from any potential continuing resolution, government shutdown, or application of spending limits or other spending cuts.
Revenue & Expenses
Visualization of income flow from segment revenue to net income