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Sep 30
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.
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 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.