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Dec 31, 2023
Northrop Grumman Q4 2023 Earnings Report
Northrop Grumman reported a sales increase of 6% to $10.6 billion, but recorded a net loss of $535 million due to a pre-tax charge associated with the B-21 program. The company's total backlog rose to a record $84.2 billion.
Key Takeaways
Northrop Grumman's Q4 2023 sales increased by 6% to $10.6 billion, driven by strong demand across its sectors. However, the company reported a net loss of $535 million, or $3.54 per diluted share, due to a $1.56 billion pre-tax charge related to the B-21 program. Despite the net loss, the total backlog reached a record $84.2 billion.
Q4 sales increased 6 percent to $10.6 billion.
The company recorded a $1.56 billion pre-tax charge for the B-21 program.
Net loss totaled $535 million, or $3.54 per diluted share.
Total backlog rose to a record $84.2 billion.
Revenue by Segment
Forward Guidance
Northrop Grumman introduced strong 2024 sales and margin guidance inline with prior outlook. The company reaffirms 2024 and 2025 free cash flow outlook and projects solid growth in 2026.
Positive Outlook
- Sales between $40.8 billion and $41.2 billion.
- Segment operating income between $4.475 billion and $4.550 billion.
- Total net FAS/CAS pension adjustment of approximately $700 million.
- MTM-adjusted EPS between $24.45 and $24.85.
- Free cash flow between $2.250 billion and $2.650 billion.
Challenges Ahead
- Interest expense of approximately $660 million.
- Effective tax rate of approximately 17%.
- Capital expenditures of approximately $1.8 billion.
- Unallocated corporate expense for Intangible asset amortization & PP&E step-up depreciation of ~$100 million
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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