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Sep 30, 2025
Northrop Grumman Q3 2025 Earnings Report
Northrop Grumman reported solid results in Q3 2025 with revenue and EPS growth supported by strong segment performance and a key defense contract win.
Key Takeaways
Northrop Grumman delivered a strong Q3 2025, with $10.42B in revenue and $7.67 EPS. The company showed robust operational performance, expanded margins, and secured a $1.8B missile defense contract, contributing to a book-to-bill ratio of 1.17x.
Revenue reached $10.42B, with 5% organic sales growth year-over-year.
EPS grew to $7.67, driven by segment performance and marketable securities gains.
Segment operating margin expanded to 12.3%, up 80 bps from last year.
Secured $1.8B missile defense contract, contributing to 1.17x book-to-bill ratio.
Revenue by Segment
Forward Guidance
Northrop Grumman increased its full-year adjusted EPS guidance and expects continued margin strength and strong free cash flow, despite slightly lowering sales outlook.
Positive Outlook
- Increased full-year adjusted EPS guidance to $25.65–$26.05.
- Expected Q4 sales growth of ~8%.
- Free cash flow forecast raised to $3.05B–$3.35B.
- Higher margin expectations in Defense Systems segment.
- Improved pension income estimates for 2026.
Challenges Ahead
- Full-year sales guidance slightly lowered to $41.7B–$41.9B.
- Space Systems Q3 revenue declined YoY.
- Aeronautics Systems Q3 segment income slightly down YoY.
- High interest expense projected at ~$675M.
- Continued cost pressures from macroeconomic trends.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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