How Many Drones Can the U.S. Navy Buy From Northrop Grumman for $267.2 Million?

Core Insights - Northrop Grumman is experiencing significant cost overruns in its MQ-4C Triton drone program, with the per-unit cost rising from an initial estimate of over $30 million to more than $133 million, and projections suggesting it could reach $618 million per unit by the program's end [4][5][6] - The U.S. Navy has drastically reduced its orders for Tritons, with the last order placed nearly 18 months ago, indicating a shift in defense procurement priorities towards cheaper and more expendable drone systems [2][3][8] - The company is expected to wind down Triton production by October 2028, with the program's future appearing bleak as the market shifts away from complex systems like Triton [8][10] Company Performance - Northrop Grumman's stock performance is under scrutiny due to disappointing free cash flow relative to reported earnings and a low long-term earnings growth rate of 3% [10] - Despite challenges in the drone segment, Northrop has other projects, including the B-21 stealth bomber and a $3.5 billion contract for E-130J Doomsday Planes, indicating diversification in its defense portfolio [9]