Northrop Grumman
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Northrop Grumman (NOC) investor relations material

Northrop Grumman Q4 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q4 2025 earnings summary27 Jan, 2026

Executive summary

  • Achieved record backlog of $95.7 billion, driven by $46.3 billion in net awards in 2025 and robust global demand.

  • 2025 sales reached $42.0 billion, up 3% organically, with international sales growth of 20%.

  • Free cash flow for 2025 was $3.3 billion, up 26% year-over-year.

  • 2025 financial results met or exceeded guidance, positioning for sustainable growth.

  • Portfolio aligned with U.S. and international defense priorities, focusing on rapid fielding and scalable solutions.

Financial highlights

  • Q4 2025 sales were $11.7 billion, up 10% year-over-year; full-year sales reached $42.0 billion, up 3% organically.

  • Q4 segment operating income rose 10% to $1.3 billion; segment margin rate at 11.2%.

  • Q4 adjusted/MTM-adjusted EPS was $7.23, up 13% year-over-year.

  • 2025 diluted EPS was $29.08; MTM-adjusted EPS was $26.34.

  • Operating cash flow for 2025 was $4.8 billion, up 8% year-over-year.

Outlook and guidance

  • 2026 sales expected between $43.5–$44.0 billion, representing mid-single-digit growth.

  • 2026 segment operating income projected at $4.85–$5.0 billion; operating margin in the low to mid 11% range.

  • 2026 adjusted/MTM-adjusted EPS expected between $27.40–$27.90, up mid-single digits.

  • Free cash flow guidance for 2026 is $3.1–$3.5 billion; capital expenditures projected at $1.65 billion.

  • Growth expected to accelerate through 2026, with further upside in 2027 as backlog converts to revenue.

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Frequently asked questions

Northrop Grumman Corporation provides innovative systems, products and solutions in unmanned systems; aerospace systems; C4ISR and logistics and modernization; cyber security; strike, surveillance and mobility; command, control, communications, computers and intelligence solutions, and naval systems to government and commercial customers. It's aerospace products include long-range strike bombers, combat avionics, surveillance aircrafts and related software, training services and other mission support services. The company was founded in 1939 and is based in Falls Church, Virginia.

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