Company: NOC
Filing Date: 2025-04-22
Form Type: 10-Q
Source: 0001133421-25-000023
Chunk: 75

Company: NORTHROP GRUMMAN CORP /DE/
Filing Date: 2025-04-22
Form: 10-Q
Item: Part I, Item 2
Chunk 75
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 $226 million unfavorable EAC adjustment on the first and second LRIP lots.

DEFENSE SYSTEMSThree Months Ended March 31%$ in millions20252024ChangeSales$1,805 $1,737 4 %Operating income179 156 15 %Operating margin rate9.9 %9.0 %

Sales 

First quarter 2025 sales increased $68 million, or 4 percent, primarily due to continued ramp-up on the Sentinel program and higher volume on certain military ammunition programs, partially offset by lower sales on the Stand-in Attack Weapon (SiAW) program.

Operating Income 

First quarter 2025 operating income increased $23 million, or 15 percent, due to a higher operating margin rate and higher sales. Operating margin rate increased to 9.9 percent from 9.0 percent primarily due to higher net EAC adjustments.

MISSION SYSTEMSThree Months Ended March 31%$ in millions20252024ChangeSales$2,807 $2,659 6 %Operating income361 378 (4)%Operating margin rate12.9 %14.2 %

Sales 

First quarter 2025 sales increased $148 million, or 6 percent, primarily due to higher sales on the Scalable Agile Beam Radar (SABR) program, ramp-up on electronic warfare self-protection and international ground-based radar 

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Table of ContentsNORTHROP GRUMMAN CORPORATION                        

programs, and higher volume on marine systems programs. These increases were partially offset by lower volume on restricted advanced microelectronics programs.

Operating Income 

First quarter 2025 operating income decreased $17 million, or 4 percent, due to a lower operating margin rate, which more than offset higher sales. Operating margin rate decreased to 12.9 percent from 14.2 percent, primarily due to investments made by the sector in connection with restricted business opportunities and lower volume on restricted advanced microelectronics programs, which more than offset higher net EAC adjustments.

SPACE SYSTEMSThree Months Ended March 31%$ in millions20252024ChangeSales$2,568 $3,149 (18)%Operating income283 330 (14)%Operating margin rate11.0 %10.5 %

Sales 

First quarter 2025 sales decreased $581 million, or 18 percent, primarily due to wind-down of work on the restricted space and Next Generation Interceptor (NGI) programs, which reduced sales by