Northrop Grumman Q4 Profit Rises on Strong Aeronautics Sales
Northrop Grumman posted higher fourth-quarter profit and revenue, driven by strong sales in its aeronautics unit as defense spending increases. The company also released its full-year 2025 financial results in the same filing.
1. Q4 Profit and Revenue Growth
Northrop Grumman reported a fourth-quarter net profit of $1.32 billion, up 20% from $1.10 billion in the year-ago period, driven by higher volume in key programs. Quarterly revenue rose 7% to $10.5 billion, compared with $9.8 billion a year earlier, reflecting increased deliveries across missile defense and space systems. The company’s adjusted diluted earnings per share climbed to $5.10, exceeding the high end of its prior guidance range by $0.15.
2. Aeronautics Segment Performance
The Aeronautics Systems division delivered sales of $3.2 billion in the quarter, a 15% increase over the prior-year period, fueled by production ramp-up on the B-21 Raider program and sustained deliveries of E-2D Advanced Hawkeye aircraft. Operating margin in the segment expanded by 180 basis points to 11.5%, supported by favorable mix and improved manufacturing efficiencies at the Palmdale, California, facility.
3. Full-Year 2025 Highlights and Outlook
For full-year 2025, Northrop Grumman generated revenue of $41.7 billion, up 8% from 2024, and reported net earnings of $4.75 billion, a 12% increase versus the prior year. The company ended the period with a funded backlog of $82.3 billion, underpinned by recent awards for space launch vehicles and integrated air defense systems. Management reiterated its 2026 guidance for mid-single-digit revenue growth and adjusted EPS in the range of $20.50 to $21.00, supported by strong program schedules and continued demand driven by geopolitical tensions.