Northrop Grumman Q1 EPS $6.14, Revenue Up 4% on B-21 Deal
Northrop Grumman’s Q1 adjusted EPS of $6.14 beat consensus by $0.09, while revenue climbed 4% year-over-year to $9.88 billion, topping analyst forecasts by $120 million. Aeronautics Systems sales jumped 17% on a U.S. Air Force B-21 expansion deal, lifting operating income 73% to $989 million and margin to 10.0%.
1. Q1 Financial Results
Northrop Grumman reported adjusted EPS of $6.14, surpassing the consensus by $0.09, and delivered revenue of $9.88 billion, a 4% increase from the prior year and $120 million above projected levels.
2. Aeronautics Systems Performance
Sales in the Aeronautics Systems segment rose 17% driven by an agreement with the U.S. Air Force to expand B-21 production capacity and accelerate Sentinel program capabilities, propelling segment operating income up 89% to $1.07 billion and margin to 10.8%.
3. Operating Income and Margins
Total operating income jumped 73% to $989 million, lifting operating margin to 10.0% from 6.1%, primarily due to the absence of a $477 million B-21 loss provision recorded in the prior-year period.
4. Backlog and Full-Year Guidance
Net awards reached $9.8 billion and backlog stood at $95.6 billion, while full-year 2026 projections remain unchanged with sales of $43.5 billion–$44.0 billion, segment income of $4.85 billion–$5.0 billion, EPS of $27.40–$27.90 and free cash flow of $3.1 billion–$3.5 billion.