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Dec 31, 2024
Northrop Grumman Q4 2024 Earnings Report
Northrop Grumman's Q4 2024 financial results were reported, showing sales comparable to the prior year and a new record backlog.
Key Takeaways
Northrop Grumman reported fourth-quarter sales of $10.7 billion, comparable to the prior year. Net earnings totaled $1.3 billion, or $8.66 per diluted share. The company's backlog reached a new record of $91.5 billion.
Book to bill ratio was 1.23, with backlog rising to a new record of $91.5 billion.
Sales increased 4.4 percent to $41.0 billion.
Diluted EPS was $28.34, and MTM-adjusted EPS was $26.08.
Free cash flow was $2.6 billion.
Revenue by Segment
Forward Guidance
Northrop Grumman provided its 2025 financial guidance, anticipating continued organic sales growth, margin expansion, and double-digit free cash flow growth. The guidance includes the divestiture of the Training Services business, expected to close mid-year.
Positive Outlook
- Sales between $42.0 billion and $42.5 billion
- Segment operating income between $4.65 billion and $4.80 billion
- MTM-adjusted EPS between $27.85 and $28.25
- Free cash flow between $2.85 billion and $3.25 billion
- Aeronautics Systems: Low $13B Sales and Mid to High 9% OM Rate
Challenges Ahead
- Defense Systems: Low $8B Sales and Mid to High 9% OM Rate
- Mission Systems: ~$12B Sales and Mid 14% OM Rate
- Space Systems: ~$11B Sales and High 10% OM Rate
- Intersegment Eliminations: ~($2.1)B Sales and High 13% OM Rate
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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