Company: NOC
Filing Date: 2025-10-21
Form Type: 10-Q
Source: 0001133421-25-000053
Chunk: 86

Company: NORTHROP GRUMMAN CORP /DE/
Filing Date: 2025-10-21
Form: 10-Q
Item: Part I, Item 2
Chunk 86
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 future sales trends by presenting the company’s sales adjusted for the impact of the divestiture.

We reconcile this non-GAAP financial measure to its most directly comparable GAAP financial measure below. This non-GAAP measure may not be defined and calculated by other companies in the same manner and should not be considered in isolation or as an alternative to operating results presented in accordance with GAAP.

Selected financial highlights are presented in the table below:

Three Months Ended September 30%Nine Months Ended September 30%$ in millions, except per share amounts20252024Change20252024ChangeSales$10,423 $9,996 4 %$30,242 $30,347 — %Operating costs and expenses9,181 8,876 3 %27,233 27,066 1 %Operating costs and expenses as a % of sales88.1%88.8%90.1%89.2%Gain on sale of business— — NM231 — NMOperating income1,242 1,120 11 %3,240 3,281 (1)%Operating margin rate11.9%11.2%10.7%10.8%Federal and foreign income tax expense223 162 38 %573 555 3 %Effective income tax rate16.9%13.6%17.2%16.0%Net earnings1,100 1,026 7 %2,755 2,910 (5)%Diluted earnings per share$7.67 $7.00 10 %$19.12 $19.69 (3)%

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Table of ContentsNORTHROP GRUMMAN CORPORATION                        

Sales

The table below reconciles sales to organic sales:

Three Months Ended September 30%Nine Months Ended September 30%$ in millions20252024Change20252024ChangeSales$10,423 $9,996 4 %$30,242 $30,347 — %Less: Training services sales— (70)(112)(226)Organic sales$10,423 $9,926 5 %$30,130 $30,121 — %

Current Quarter

Third quarter 2025 sales increased $427 million, or 4 percent, primarily driven by higher sales at Mission Systems, Defense Systems and Aeronautics Systems, partially