Northrop Grumman boosts profit outlook after steady third-quarter growth 

Northrop Grumman reported higher sales and profits in the third quarter of 2025 and raised its full-year earnings forecast, aided by strong demand for defense programs and improved efficiency across most of its divisions. 

The Falls Church, Virginia-based company said it brought in $10.42 billion in revenue for the quarter ending September 30, a 4% increase from the same period last year. Net profit rose to $1.1 billion, or $7.67 per share, up from $1 billion, or $7 per share, a year earlier. Northrop said it made slightly more money on each dollar of sales than it did last year, reflecting improved cost control. 

The company booked $12.2 billion in new contracts during the quarter, lifting its order backlog to $91.4 billion. Free cash flow — essentially the cash left after paying for capital projects — jumped 72% to $1.26 billion, aided by improved working-capital management and the timing of payments from customers. 

Chief Executive Officer Kathy Warden said the company is on track to meet its goals for growth and profitability in 2025. “The momentum we are building in our business drove strong third-quarter performance to achieve our financial objectives for mid-single-digit growth, expanding margins, and growing cash flows year over year,” she said. “As a result of this performance and our positive outlook for the remainder of the year, we are once again increasing our 2025 EPS guidance.” 

Sales rose in three of Northrop’s four main business areas. The Mission Systems division, which builds advanced electronics, sensors, and radar systems, saw revenue climb 10% to $3.09 billion. Profit from that unit jumped 32% thanks to higher production and efficiency gains in its microelectronics and marine programs. 

The Defense Systems segment, which handles missiles, ammunition, and battle-management programs, grew 14% to $2.06 billion. Profit there rose by nearly half, helped by strong demand for the Sentinel nuclear-missile program and the Integrated Battle Command System. 

The Aeronautics Systems division, which produces aircraft including the F-35 and the E-130J TACAMO, posted a 6% sales increase to $3.14 billion. Profit slipped slightly as some long-term contracts delivered slimmer margins. 

The only decline came from Space Systems, where revenue fell 6% to $2.70 billion. The company said some older space and missile programs are winding down, though that was partly offset by new work on NASA’s cargo-resupply missions. 

For the full year, Northrop raised its earnings outlook to between $25.65 and $26.05 per share, up from its previous target of $25.00 to $25.40. The company now expects total 2025 revenue between $41.7 billion and $41.9 billion, a bit below its earlier forecast but still reflecting steady growth. It also expects to generate up to $3.35 billion in free cash flow this year. 

Warden said global defense spending remains strong, driven by heightened security concerns and modernization efforts by the US and its allies. “We’re demonstrating our team can rapidly innovate the way we work and the products we deliver, while also providing the quality and performance customers expect,” she said. 

Northrop’s large backlog includes key US programs such as the Ground-Based Midcourse Defense Weapon System, components for the F-35 fighter jet, and contracts supporting the Virginia-class submarine. Classified “restricted” programs — work that’s not publicly detailed — also made up a significant share of new awards. 

Northrop said it expects each of its four major business areas to grow again next year as it continues to invest in technology for aircraft, space, and missile-defense systems. The post Northrop Grumman boosts profit outlook after steady third-quarter growth  appeared first on AeroTime.

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