Overview
Northrop Grumman, headquartered in Falls Church, Virginia, announced first-quarter revenue of $9.88 billion, up 4.4% from $9.47 billion in the same quarter a year earlier. The company attributed the rise to stronger demand in its aeronautics business and growth in defense systems, amid increased procurement activity tied to global conflicts and Pentagon efforts to replenish weapons stockpiles.
Business segment results
The aeronautics segment led the gains, with sales rising 17% to $3.28 billion in the quarter. The company cited robust demand for its aeronautics systems, which include the B-21 Raider aircraft.
In the defense systems segment, organic sales increased by 10% to $1.9 billion. Northrop said this growth was supported by a ramp-up in the Sentinel program - the land-based leg of the U.S. nuclear triad which will replace Boeing's Minuteman III - and by stronger demand for tactical solid rocket motors.
Program milestones and costs
In February, Northrop and the U.S. Air Force agreed to expand production capacity for the nuclear-capable B-21 Raider by 25% and to accelerate deliveries. The first B-21 aircraft is scheduled for delivery in 2027. Prior to that production expansion, the Air Force had committed to purchasing at least 100 aircraft. The per-aircraft price, inclusive of support equipment, training and engineering change orders, was estimated at $692 million in 2022 dollars.
Northrop also reported progress on the Sentinel program, noting it was achieving "substantial progress" with a first flight expected in 2027 and initial operational capability targeted for the early 2030s. Sentinel will replace the aging Minuteman III, which was first deployed in 1970; as of 2019 the United States maintained an active force of 400 Minuteman III missiles.
The company said last year's results were weighed down by a $477 million charge tied to higher manufacturing costs on the B-21 program, a factor that contrasted with this quarter's stronger per-share performance. First-quarter per-share profit rose to $6.14, up sharply from $3.32 a year earlier.
Outlook
Northrop Grumman maintained its sales forecast for 2026 at $43.5 billion to $44 billion, reflecting management's continued expectations for revenue growth across its portfolio as demand from the Department of Defense persists.