Company: NOC
Filing Date: 2025-07-22
Form Type: 10-Q
Source: 0001133421-25-000049
Chunk: 43

Company: NORTHROP GRUMMAN CORP /DE/
Filing Date: 2025-07-22
Form: 10-Q
Item: Part I, Item 1
Chunk 43
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 the table below:

Three Months Ended June 30%Six Months Ended June 30%$ in millions, except per share amounts20252024Change20252024ChangeSales$10,351 $10,218 1 %$19,819 $20,351 (3)%Operating costs and expenses9,157 9,128 — %18,052 18,190 (1)%Operating costs and expenses as a % of sales88.5 %89.3 %91.1 %89.4 %Gain on sale of business231 — NM231 — NMOperating income1,425 1,090 31 %1,998 2,161 (8)%Operating margin rate13.8 %10.7 %10.1 %10.6 %Federal and foreign income tax expense253 206 23 %350 393 (11)%Effective income tax rate17.7 %18.0 %17.5 %17.3 %Net earnings1,174 940 25 %1,655 1,884 (12)%Diluted earnings per share$8.15 $6.36 28 %$11.45 $12.69 (10)%

Sales

The table below reconciles sales to organic sales:

Three Months Ended June 30%Six Months Ended June 30%$ in millions20252024Change20252024ChangeSales$10,351 $10,218 1 %$19,819 $20,351 (3)%Less: Training services sales(40)(72)(112)(156)Organic sales$10,311 $10,146 2 %$19,707 $20,195 (2)%

Current Quarter

Second quarter 2025 sales increased $133 million, or 1 percent, primarily driven by higher sales at Mission Systems, Defense Systems and Aeronautics Systems, partially offset by lower sales at Space Systems due, in part, to the wind-down of work on certain Space programs, as discussed in our segment operating results below.

Year to Date

Year to date 2025 sales decreased $532 million, or 3 percent, primarily driven by lower sales at Space Systems due, in part, to the wind-down of work on certain Space programs, and lower sales at Aeronautics Systems, partially offset