Company: NOC
Filing Date: 2025-10-21
Form Type: 10-Q
Source: 0001133421-25-000053
Chunk: 90

Company: NORTHROP GRUMMAN CORP /DE/
Filing Date: 2025-10-21
Form: 10-Q
Item: Part I, Item 2
Chunk 90
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 other users of our financial statements as supplemental measures in evaluating the financial performance and operational trends of our sectors. These measures may not be defined and calculated by other companies in the same manner and should not be considered in isolation or as alternatives to operating results presented in accordance with GAAP. 

Three Months Ended September 30%Nine Months Ended September 30%$ in millions20252024Change20252024ChangeOperating income$1,242 $1,120 11 %$3,240 $3,281 (1)%Operating margin rate11.9 %11.2 %10.7 %10.8 %Reconciliation to segment operating income:CAS pension expense(122)(80)53 %(356)(211)69 %FAS pension service expense55 60 (8)%163 179 (9)%FAS/CAS operating adjustment(67)(20)235 %(193)(32)503 %Gain on sale of business— — NM(231)— NMTraining services divestiture - unallowable state taxes and transaction costs— 2 NM20 2 NMIntangible asset amortization and PP&E step-up depreciation21 23 (9)%63 72 (13)%Other unallocated corporate expense81 21 286 %165 28 489 %Unallocated corporate expense102 46 122 %17 102 (83)%Segment operating income$1,277 $1,146 11 %$3,064 $3,351 (9)%Segment operating margin rate12.3 %11.5 %10.1 %11.0 %

Current Quarter

Third quarter 2025 segment operating income increased $131 million, or 11 percent, primarily due to higher operating income at Mission Systems and Defense Systems, partially offset by lower operating income at Space Systems. Segment operating margin rate increased to 12.3 percent from 11.5 percent due to higher operating margin rates at Mission Systems and Defense Systems, partially offset by lower operating margin rates at Space Systems and Aeronautics Systems.

Year to Date

Year to date 2025 segment operating income decreased $287 million, or 9 percent, due to lower operating income at Aeronautics Systems, primarily driven by a $477 million B-21 loss provision in the first quarter of 2025, and lower operating income at Space Systems, partially offset by higher