Northrop Grumman Reports Strong Q4 & Full-Year 2025 Results, Record Backlog, and Positive 2026 Guidance
NOC sits 55% above its 52-week low of $426.24.
Summary
Northrop Grumman announced strong Q4 and full-year 2025 financial results, including increased sales, record backlog, and robust free cash flow, alongside positive guidance for 2026.
Key Events · Earnings and Guidance · NOC
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Strong Q4 and Full-Year 2025 Financial Performance
Fourth quarter 2025 sales increased 10% to $11.7 billion, while full-year sales grew 2% to $42.0 billion. Diluted EPS for Q4 was $9.99 and for the full year was $29.08, with MTM-adjusted EPS at $7.23 and $26.34 respectively.
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Record Backlog and Strong Book-to-Bill
The company achieved a new record backlog of $95.7 billion, driven by a full-year book-to-bill ratio of 1.10, signaling strong future contract awards and revenue potential.
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Robust Free Cash Flow Generation
Northrop Grumman reported strong operating cash flow of $4.8 billion and free cash flow of $3.3 billion for the full year 2025, representing a 26% increase in free cash flow year-over-year.
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Positive 2026 Financial Guidance
The company provided 2026 guidance projecting mid-single digit sales growth, with anticipated sales between $43.5 billion and $44.0 billion, and MTM-adjusted EPS between $27.40 and $27.90, consistent with prior outlook.
Analysis · NOC · Manufacturing
Northrop Grumman delivered robust financial results for the fourth quarter and full-year 2025, exceeding expectations with significant sales growth and strong free cash flow. The company achieved a new record backlog of $95.7 billion, supported by a healthy book-to-bill ratio of 1.10, indicating strong future revenue visibility. The positive momentum is projected to continue into 2026, with guidance forecasting mid-single digit sales growth and sustained strong performance, reinforcing investor confidence in the company's operational strength and market position.
At the time of this filing, NOC was trading at $661.04 on NYSE in the Manufacturing sector, with a market capitalization of approximately $94.3B. The 52-week trading range was $426.24 to $677.30. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.