Company: NOC
Filing Date: 2025-07-22
Form Type: 10-Q
Source: 0001133421-25-000049
Chunk: 54

Company: NORTHROP GRUMMAN CORP /DE/
Filing Date: 2025-07-22
Form: 10-Q
Item: Part I, Item 1
Chunk 54
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 offset by higher net EAC adjustments at Defense Systems largely driven by the Sentinel program.

Service Sales and Costs

Current Quarter

Second quarter 2025 service sales decreased $49 million, or 2 percent, primarily due to lower restricted sales at Aeronautics Systems and the training services divestiture at Defense Systems. Second quarter 2025 sales from the training services business, which were largely included in service sales, were $40 million as compared to $72 million in the prior year period.

Second quarter 2025 service costs decreased $42 million, or 2 percent, consistent with the lower service sales described above.

Year to Date

Year to date 2025 service sales decreased $133 million, or 3 percent, primarily due to lower restricted sales at Aeronautics Systems and the training services divestiture at Defense Systems. Year to date 2025 sales from the training services business, which were largely included in service sales, were $112 million as compared to $156 million in the prior year period.

Year to date 2025 service costs decreased $111 million, or 3 percent, consistent with the lower service sales described above.

BACKLOG

Backlog consisted of the following as of June 30, 2025 and December 31, 2024:

 June 30, 2025December 31, 2024$ in millionsFundedUnfundedTotalBacklogTotalBacklog% Change in 2025Aeronautics Systems$10,556 $12,988 $23,544 $25,202 (7)%Defense Systems8,205 18,824 27,029 26,614 2 %Mission Systems11,899 5,645 17,544 16,443 7 %Space Systems6,800 14,820 21,620 23,209 (7)%Total backlog$37,460 $52,277 $89,737 $91,468 (2)%

Second quarter and year to date 2025 net awards totaled $7.4 billion and $18.2 billion, respectively. Backlog totaled $89.7 billion and reflects a $150 million reduction of backlog in connection with the training services divestiture. Significant second quarter new awards include $1.8 billion for restricted programs (primarily at Mission Systems, Aeronautics Systems and Space Systems), $0.5 billion for F-35 (primarily at