Company: NOC
Filing Date: 2025-10-21
Form Type: 10-Q
Source: 0001133421-25-000053
Chunk: 95

Company: NORTHROP GRUMMAN CORP /DE/
Filing Date: 2025-10-21
Form: 10-Q
Item: Part I, Item 2
Chunk 95
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 billion, or 12 percent, primarily due to wind-down of work on the restricted space and NGI programs, which reduced sales by $635 million, as well as a $195 million decrease for SDA satellite programs. The decrease was also driven by lower volume on other restricted space programs and the Space Launch System (SLS) Booster, Next Gen Polar (NGP) and Ground-Based Midcourse Defense (GMD) programs, partially offset by higher volume on GEM 63 as that program ramps.

Operating Income 

Current Quarter

Third quarter 2025 operating income decreased $47 million, or 14 percent, primarily due to a lower operating margin rate and lower sales. Operating margin rate decreased to 11.0 percent from 12.0 percent principally due to lower net EAC adjustments, including a prior year $39 million favorable EAC adjustment on the Habitation and Logistics Outpost program, partially offset by sales growth on programs with accretive margin rates.

Year to Date

Year to date 2025 operating income decreased $118 million, or 12 percent, due to lower sales. Operating margin rate of 10.9 percent was comparable with the prior year period.

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Table of ContentsNORTHROP GRUMMAN CORPORATION                        

PRODUCT AND SERVICE ANALYSIS

The following table presents product and service sales and operating costs and expenses by segment:Three Months Ended September 30Nine Months Ended September 30$ in millions2025202420252024Segment Information:SalesOperating Costs and ExpensesSalesOperating Costs and ExpensesSalesOperating Costs and ExpensesSalesOperating Costs and ExpensesAeronautics SystemsProduct$2,296 $2,108 $2,170 $1,956 $6,715 $6,575 $6,676 $6,043 Service804 690 758 666 2,234 1,940 2,290 2,007 Intersegment eliminations42 39 33 30 121 112 99 88 Total Aeronautics Systems3,142 2,837 2,961 2,652 9,070 8,627 9,065 8,138 Defense SystemsProduct1,657 1,483 1,392 1,269 4,639 4,117 4,128 3,764 Service351 297 365 333 1,067 940 1,138 1,011