Company: NOC
Filing Date: 2025-10-21
Form Type: 10-Q
Source: 0001133421-25-000053
Chunk: 51

Company: NORTHROP GRUMMAN CORP /DE/
Filing Date: 2025-10-21
Form: 10-Q
Item: Part I, Item 1
Chunk 51
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Third quarter 2025 operating income decreased $4 million, or 1 percent, due to a lower operating margin rate, partially offset by higher sales. Operating margin rate decreased to 9.7 percent from 10.4 percent, primarily due to lower net contract margin adjustments.

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Table of ContentsNORTHROP GRUMMAN CORPORATION                        

Year to Date

Year to date 2025 operating income decreased $484 million and operating margin rate decreased to 4.9 percent primarily due to the previously described $477 million loss provision recorded on the LRIP phase of the B-21 program in the first quarter of 2025.

DEFENSE SYSTEMSThree Months Ended September 30%Nine Months Ended September 30%$ in millions20252024Change20252024ChangeSales$2,059 $1,800 14 %$5,855 $5,396 9 %Less: Training services sales— (70)(112)(226)Organic sales$2,059 $1,730 19 %$5,743 $5,170 11 %Operating income$234 $160 46 %$666 $507 31 %Operating margin rate11.4 %8.9 %11.4 %9.4 %

Sales 

Current Quarter

Third quarter 2025 sales increased $259 million, or 14 percent, primarily due to higher volume on armament programs, including military ammunition programs, increased volume from new awards across the Integrated Battle Command System (IBCS) program portfolio and higher sales on Sentinel. These increases were partially offset by a $70 million reduction in sales related to the training services divestiture.

Year to Date

Year to date 2025 sales increased $459 million, or 9 percent, primarily due to a $195 million increase in sales on Sentinel, higher volume on armament programs, including a $135 million increase on military ammunition programs, and increased volume from new awards across the IBCS program portfolio. These increases were partially offset by a $114 million reduction in sales related to the training services divestiture.

Operating Income 

Current Quarter

Third quarter 2025 operating income increased $74 million, or 46 percent, primarily due to a higher operating margin rate and higher sales. Operating margin rate increased to 11.4 percent from 8.9 percent principally due to higher net EAC adjustments and changes in mix toward