Northrop Grumman(US:NOC) ZACKS·2025-10-21 16:46Core Insights - Northrop Grumman Corporation (NOC) reported third-quarter 2025 adjusted earnings of $7.67 per share, exceeding the Zacks Consensus Estimate of $6.49 by 18.2% and increasing 9.6% from $7 in the prior-year quarter [1] - Total sales for the third quarter were $10.42 billion, missing the Zacks Consensus Estimate of $10.72 billion by 2.8%, but rising 4.3% from $10 billion reported in the year-ago quarter [2] - The company's total backlog reached $91.45 billion at the end of the third quarter, up from $89.74 billion at the end of the second quarter of 2025 [3] Segment Performance - Aeronautics Systems: Sales increased 6.1% year over year to $3.14 billion, driven by a $110 million increase from the E-130J TACAMO program and a $105 million rise in the F-35 program. Operating income was $305 million, down from $309 million in the prior year, with a margin decline of 70 basis points to 9.7% [4] - Mission Systems: Sales jumped 9.6% to $3.09 billion, driven by increased sales from advanced microelectronics programs and international radar programs. Operating income rose 32.1% to $515 million, with an operating margin expansion of 290 basis points to 16.7% [5] - Defense Systems: Sales increased 14.4% year over year to $2.06 billion, supported by higher volumes in armament programs and new awards. Operating income improved 46.3% to $234 million, with a margin expansion of 250 basis points to 11.4% [6] - Space Systems: Sales declined 6% to $2.7 billion due to winding down of certain programs. Operating income decreased 13.6% to $298 million, with a margin decline of 100 basis points to 11% [7] Financial Overview - Total operating income for the quarter was $1.24 billion, up from $1.12 billion in the prior-year quarter, attributed to higher income in Mission and Defense Systems [9] - Cash and cash equivalents as of September 30, 2025, totaled $1.96 billion, down from $4.35 billion at the end of 2024. Long-term debt increased to $15.16 billion from $14.69 billion [10] - Net cash provided by operating activities was $0.86 billion for the first nine months of 2025, compared to $1.81 billion in the same period last year [10] Guidance - Northrop Grumman revised its revenue guidance for 2025 to a range of $41.70-$41.90 billion, lower than the previous range of $42.05-$42.25 billion. The Zacks Consensus Estimate for sales is $42.17 billion, above the new guidance [11] - The company raised its adjusted earnings guidance to a range of $25.65-$26.05 per share, higher than the previous range of $25.00-$25.40. The Zacks Consensus Estimate for earnings is $25.38 per share, below the new guidance [12]