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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.
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 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
- Includes divestiture of Training Services business, expected to close mid-year
Revenue & Expenses
Visualization of income flow from segment revenue to net income