Northrop Grumman releases transcript of Q2 2026 earnings call
NOC•Orders and backlog set records
Q2 awards totaled USD 20 billion, book-to-bill reached 1.84, and backlog set a record USD 105 billion. Full-year book-to-bill is seen at least 1.25.
PAC-3 solid rocket motor progress
PAC-3 solid rocket motor qualification was completed. Northrop Grumman signed a USD 2 billion framework agreement, and a production award is expected later this year, starting at smaller scale.
Program charges and operational updates
Two negative EAC adjustments hit margins: GEM 63XL in Space and SiAW in Defense Systems. The redesigned GEM 63XL component passed a static-fire test, with deliveries targeted by year-end.
Q2 2026 earnings call and raised outlook
Northrop Grumman discussed Q2 2026 results on its earnings call attended by CEO Kathy Warden, CFO John Greene, IR head Adam Barr, analysts.
- Raised 2026 sales outlook to USD 43.75-44.25 billion
- Lifted adjusted EPS view to USD 28.60-29.10
- Reaffirmed adjusted free cash flow of USD 3.1-3.5 billion
