Northrop Grumman Reports Strong Q4 & Full-Year 2025 Results, Record Backlog, and Positive 2026 Guidance

summarizeSummary

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.

check_boxKey Events

• 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.

• 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.

• 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.

• 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.

auto_awesomeAnalysis

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.