Core Viewpoint - Northrop Grumman delivered stronger-than-expected fourth-quarter results, but a softer outlook for 2026 negatively impacted shares, which fell over 2% in pre-market trading [1] Financial Performance - The company reported earnings of $7.23 per share, exceeding the consensus estimate of $6.99, while revenue reached $11.7 billion, slightly ahead of expectations [2] - Aeronautics Systems led growth with sales climbing 18% year over year to $3.92 billion, Mission Systems revenue rose 9.7% to $3.45 billion, Space Systems sales increased 5.5% to $2.86 billion, and Defense Systems revenue advanced 7.2% to $2.15 billion [2] - Free cash flow surged 84% year over year to $3.24 billion, modestly above forecasts, while capital expenditures declined to $662 million [3] - Backlog stood at $95.68 billion at the end of the quarter [3] Future Outlook - For fiscal 2026, Northrop Grumman projected earnings of $27.40 to $27.90 per share, below the consensus estimate of $28.85 [4] - Revenue was forecast at $43.5 billion to $44.0 billion, also trailing expectations [4] - Free cash flow was guided to $3.10 billion to $3.50 billion, with capital spending expected to total about $1.65 billion [4]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission file number 1-16411 NORTHROP GRUMMAN CORPORATION (Exact name of registrant as specified in its charter) Delaware 80-0640649 Falls Church, Virginia 2 ...

Core Insights - Northrop Grumman Corporation (NOC) triggered a significant Power Inflow alert, indicating a bullish trend in trading activity, particularly from institutional and retail investors [2][3] Group 1: Power Inflow Signal - The Power Inflow alert is a proprietary signal from TradePulse, issued within the first two hours of trading, highlighting a strong trend toward buying activity [4] - This alert suggests a high probability of bullish price movement for the remainder of the trading day, making it a strategic entry point for active traders [4] Group 2: Stock Performance - At the time of the Power Inflow signal, NOC was priced at $655.32, and following the alert, the stock reached an intraday high of $683.01, reflecting a gain of 4.23% [6] - The Power Inflow alert demonstrated the effectiveness of real-time order flow analytics in revealing bullish momentum, especially during a price decline [6] Group 3: Order Flow Analytics - Order flow analytics provide insights into real-time buying and selling trends by examining volume, timing, and order size among retail and institutional traders [5] - These analytics enhance understanding of price behavior and market sentiment, enabling informed decision-making for traders and institutions [5]

Financial giants have made a conspicuous bullish move on Northrop Grumman. Our analysis of options history for Northrop Grumman (NYSE:NOC) revealed 21 unusual trades.Delving into the details, we found 52% of traders were bullish, while 23% showed bearish tendencies. Out of all the trades we spotted, 5 were puts, with a value of $375,593, and 16 were calls, valued at $731,950.Expected Price MovementsAnalyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a pr ...

Core Insights - Northrop Grumman Corporation (NOC) reported fourth-quarter 2025 adjusted earnings of $7.23 per share, exceeding the Zacks Consensus Estimate by 3.3% and reflecting a 13.1% increase from the prior-year quarter [1] - The company achieved total sales of $11.71 billion in the fourth quarter, surpassing the Zacks Consensus Estimate by 0.8% and marking a 9.6% year-over-year increase [3] - NOC's total backlog reached $95.68 billion at the end of the fourth quarter, up from $91.45 billion in the previous quarter, indicating strong program demand [5][8] Financial Performance - Adjusted earnings for 2025 were reported at $26.34 per share, a 1% increase from $26.08 in 2024 [2] - GAAP earnings for the fourth quarter were $9.99 per share, a 15.4% improvement from $8.66 in the same quarter last year [1] - Total operating income for the fourth quarter was $1.27 billion, reflecting a 17% rise from $1.09 billion in the prior-year quarter [11] Sales Breakdown - Aeronautics Systems segment sales rose 17.7% year over year to $3.92 billion, driven by increased volumes in various programs [6] - Mission Systems segment sales increased 9.7% to $3.45 billion, supported by ramp-up in airborne radar programs and higher volumes on F-35 [7] - Defense Systems segment sales climbed 7.2% to $2.15 billion, attributed to higher volumes in multiple programs [8] - Space Systems segment sales rose 5.5% to $2.86 billion, driven by production ramp-up in key programs [9] Operational Metrics - Organic sales for 2025 increased by 3% to $41.8 billion compared to $40.7 billion in 2024 [4] - The company’s cash and cash equivalents totaled $4.40 billion as of December 31, 2025, slightly up from $4.35 billion a year earlier [12] - Long-term debt increased to $15.16 billion from $14.69 billion as of December 31, 2024 [12] Future Guidance - For 2026, NOC expects revenues in the range of $43.5-$44 billion, with the Zacks Consensus Estimate at $43.98 billion [13] - The company anticipates adjusted earnings between $27.40-$27.90 per share, while the Zacks Consensus Estimate stands at $28.78 per share [13] - NOC projects adjusted free cash flow in the range of $3.1-$3.5 billion [14]

This strong performance provides momentum for our company in an increased demand environment and gives us continued confidence in our outlook. This confidence is rooted in our conviction that we have a talented engineering and operations team and a portfolio uniquely designed to deliver the capabilities needed by our US and international customers. In the US, we are aligned with the administration's and Congress's focus on expanding American manufacturing capabilities and capacity on critical programs, ensu ...

Financial Data and Key Metrics Changes - Northrop Grumman ended 2025 with over $95 billion in backlog, a new company record, driven by over $46 billion in net awards in 2025 [4] - Free cash flow for the year was $3.3 billion, representing a 26% increase compared to 2024, marking the third consecutive year of at least 25% growth [4][21] - Fourth quarter sales were $11.7 billion, up 10% compared to the prior year, with Q4 sales accelerating 12% sequentially [16][17] Business Line Data and Key Metrics Changes - Aeronautics Systems segment sales were $3.9 billion, up 18% year-over-year, driven by the F-35 program and B-21 program ramp-up [17] - Defense Systems (DS) saw Q4 sales grow by 7% on a GAAP basis and 12% organically, with higher volume in solid rocket motors and missile defense [18] - Mission Systems achieved double-digit growth in Q4, driven by strong production volume on restricted programs and international radar systems [19] Market Data and Key Metrics Changes - International sales grew by 20% in 2025, with strong momentum as allied nations invest in enhancing their national security capabilities [12] - The company received formal requests to acquire IBCS from over 20 countries, indicating robust global demand for its technology [13] - The U.S. defense budget recommendation of $1.5 trillion for FY 2027 indicates potential for historic growth in defense spending [11] Company Strategy and Development Direction - Northrop Grumman's strategy focuses on technology leadership and capital deployment in value-creating growth opportunities [3] - The company is transforming to meet customer demands for faster delivery of capabilities, balancing performance with affordability [34] - Investments are being made to expand production capacity, particularly in munitions and solid rocket motors, to meet increasing demand [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued solid growth, supported by a strong backlog and favorable market conditions [4][12] - The company anticipates broad-based growth across all business segments in 2026, with sales expected between $43.5 billion and $44 billion [22] - Management highlighted the importance of aligning with U.S. government priorities and the need for speed and capacity in defense capabilities [11][12] Other Important Information - The company plans to increase capital expenditures in 2026 to $1.65 billion, approximately 4% of total sales, to support growth initiatives [26] - Northrop Grumman's pension funding status improved to 106% due to asset returns of 11.3% [26] - The transition to a new CFO, John Green, was noted, with appreciation for the contributions of former CFO Ken Crews [15] Q&A Session Summary Question: How is Northrop Grumman transforming to meet customer needs? - Management emphasized the need for speed and affordability in delivering capabilities, directing engineering talent to design products that can be fielded quickly [34][35] Question: What are the biggest opportunities for acceleration in 2026? - Management indicated that opportunities exist in programs like B-21 and APEX, but current guidance reflects only what is expected to be contracted [39][40] Question: What is driving the conservatism in the 2026 revenue outlook? - Management described a balanced approach, incorporating clear funding and backlog into guidance while acknowledging the dynamic environment [46] Question: What is the outlook for international growth in 2026? - Management expects strong international awards in 2026, particularly for IBCS, with several countries anticipated to announce contracts [68]

Financial Data and Key Metrics Changes - The company ended 2025 with over $95 billion in backlog, a new record, driven by over $46 billion in net awards in 2025, with a five-year average book-to-bill ratio of 1.1 times [6] - 2025 sales were $42 billion, up 3% organically compared to the prior year, exceeding the high end of the guidance range [20] - Free cash flow for the year was $3.3 billion, representing a 26% increase compared to 2024, marking the third consecutive year of at least 25% growth [6][22] Business Line Data and Key Metrics Changes - Aeronautics Systems segment sales were $3.9 billion in Q4, up 18% year-over-year, driven by the F-35 program and B-21 program ramp-up [19] - Defense Systems (DS) Q4 sales grew by 7% on a GAAP basis, 12% organically, with broad-based growth including solid rocket motors and missile defense [19] - Mission Systems achieved double-digit growth in Q4, driven by strong production volume on restricted programs and international radar systems [20] Market Data and Key Metrics Changes - International sales grew by 20% in 2025, with strong momentum as allied nations invest in enhancing their national security capabilities [14] - The company received formal requests to acquire IBCS from over 20 countries, indicating robust global demand for its technology [15] - The U.S. defense budget recommendation of $1.5 trillion for FY 2027 suggests potential historic growth in defense spending [13] Company Strategy and Development Direction - The company is focused on capital deployment to prioritize investments in value-creating growth opportunities, aligning its portfolio with customer demand signals [4] - The strategy includes transforming Northrop Grumman to meet customer needs more quickly, balancing performance with affordability and speed to market [35] - Investments are being made to expand production capacity, particularly in munitions and solid rocket motors, to meet increasing demand [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued solid growth, supported by a talented engineering team and a portfolio aligned with customer needs [6] - The company anticipates sales growth in 2026 to be between $43.5 billion and $44 billion, representing mid-single-digit growth [23] - Management highlighted the importance of maintaining operational excellence and margin expansion through cost efficiencies and operational leverage [24] Other Important Information - The company plans to increase capital expenditures in 2026 to $1.65 billion, approximately 4% of total sales, to enhance production capacity [28] - The new CFO, John Green, is expected to drive growth and operational excellence, succeeding Ken Crews [17] Q&A Session Summary Question: Transformation of Northrop Grumman - Management discussed the transformation strategy to meet customer needs more quickly, emphasizing the balance between performance and affordability [35] Question: Opportunities for Acceleration in 2026 - Management indicated that while there are significant opportunities for growth, the guidance reflects a balanced approach based on clear funding and backlog [39][40] Question: Backlog and Revenue Conversion - Management acknowledged the strong backlog but noted that translating it into revenue depends on the timing of contract awards [46][47] Question: Dividend and Buyback Plans - The company plans to keep the share count flat and focus on capital investments rather than executing additional buybacks beyond January [59] Question: Supply Chain Investments - Management confirmed that they are partnering with the supply chain for capacity expansion and addressing shortages in raw materials [60] Question: International Growth Expectations - Management expects 2026 to be a strong year for international awards, particularly for IBCS, with several contracts anticipated [95]

For the quarter ended December 2025, Northrop Grumman (NOC) reported revenue of $11.71 billion, up 9.6% over the same period last year. EPS came in at $7.23, compared to $6.39 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $11.62 billion, representing a surprise of +0.83%. The company delivered an EPS surprise of +3.27%, with the consensus EPS estimate being $7.00.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and ...

Financial Data and Key Metrics Changes - Northrop Grumman achieved fourth quarter sales of $11.7 billion, representing a 10% increase year-over-year and a 12% sequential growth, with Q4 accounting for 28% of the full-year sales volume [18][19] - For the full year 2025, total sales reached $42 billion, up 3% organically compared to the prior year, exceeding the high end of the guidance range [20] - Free cash flow for 2025 was $3.3 billion, a 26% increase from 2024, marking the third consecutive year of at least 25% growth [5][23] Business Line Data and Key Metrics Changes - Aeronautics Systems segment sales grew by 18% in Q4 to $3.9 billion, driven by the F-35 program and B-21 program ramp-up [19] - Defense Systems (DS) saw Q4 sales grow by 7% on a GAAP basis and 12% organically, with solid growth in solid rocket motors and missile defense [19] - Mission Systems achieved double-digit growth in Q4, supported by strong production volume on restricted programs and international radar systems [20] Market Data and Key Metrics Changes - International sales grew by 20% in 2025, with strong demand for air and missile defense systems and advanced munitions [15] - The company received formal requests for IBCS from over 20 countries, indicating robust global demand [16] - The U.S. defense budget recommendation of $1.5 trillion for FY27 suggests potential historic growth in defense spending [13] Company Strategy and Development Direction - Northrop Grumman's strategy focuses on technology leadership and capital deployment in value-creating growth opportunities, aligning with U.S. and international customer needs [4][5] - The company is investing in expanding production capacity for tactical solid rocket motors and other critical areas to meet increasing demand [10][11] - The focus on developing both cost-effective solutions and advanced strategic deterrence assets positions the company well for future growth [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued solid growth, supported by a record backlog of over $95 billion and a favorable demand environment [5][14] - The company anticipates broad-based growth across all segments in 2026, with sales expected between $43.5 billion and $44 billion [24][25] - Management highlighted the importance of transforming to meet customer needs quickly and effectively, particularly in the context of the current administration's focus on defense capabilities [30][31] Other Important Information - The company plans to increase capital expenditures in 2026 to $1.65 billion, approximately 4% of total sales, to enhance production capacity [28] - Northrop Grumman's pension funding status improved to 106% due to strong asset returns [28] Q&A Session Summary Question: How is Northrop Grumman transforming to meet customer needs? - Management emphasized the need for speed and affordability in product development, leveraging existing capacity to meet urgent customer demands [30][31] Question: What are the biggest opportunities for acceleration in 2026? - Management indicated that clear funding and accumulated backlog are incorporated into guidance, with specific programs like B-21 and APEX representing potential growth areas [32][33] Question: What is the outlook for international growth in 2026? - Management expects strong international awards in 2026, particularly for IBCS, with several countries anticipated to announce contracts [54] Question: How does the company view its capital allocation strategy? - The company plans to focus on growth investments rather than share buybacks, with dividends to be discussed in May [40][41] Question: What impact did the government shutdown have on financial results? - Management reported no material impact from the shutdown, as the company exceeded sales guidance and generated strong cash flow [51]