Company: NOC
Filing Date: 2025-10-21
Form Type: 10-Q
Source: 0001133421-25-000053
Chunk: 93

Company: NORTHROP GRUMMAN CORP /DE/
Filing Date: 2025-10-21
Form: 10-Q
Item: Part I, Item 2
Chunk 93
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Organic sales$2,059 $1,730 19 %$5,743 $5,170 11 %Operating income$234 $160 46 %$666 $507 31 %Operating margin rate11.4 %8.9 %11.4 %9.4 %

Sales 

Current Quarter

Third quarter 2025 sales increased $259 million, or 14 percent, primarily due to higher volume on armament programs, including military ammunition programs, increased volume from new awards across the Integrated Battle Command System (IBCS) program portfolio and higher sales on Sentinel. These increases were partially offset by a $70 million reduction in sales related to the training services divestiture.

Year to Date

Year to date 2025 sales increased $459 million, or 9 percent, primarily due to a $195 million increase in sales on Sentinel, higher volume on armament programs, including a $135 million increase on military ammunition programs, and increased volume from new awards across the IBCS program portfolio. These increases were partially offset by a $114 million reduction in sales related to the training services divestiture.

Operating Income 

Current Quarter

Third quarter 2025 operating income increased $74 million, or 46 percent, primarily due to a higher operating margin rate and higher sales. Operating margin rate increased to 11.4 percent from 8.9 percent principally due to higher net EAC adjustments and changes in mix toward more fixed-price contracts.

Year to Date

Year to date 2025 operating income increased $159 million, or 31 percent, primarily due to a higher operating margin rate and higher sales. Operating margin rate increased to 11.4 percent from 9.4 percent principally due to higher net EAC adjustments, including a $76 million favorable EAC adjustment on the Sentinel program during the second quarter of 2025.

MISSION SYSTEMSThree Months Ended September 30%Nine Months Ended September 30%$ in millions20252024Change20252024ChangeSales$3,093 $2,823 10 %$9,057 $8,255 10 %Operating income515 390 32 %1,317 1,129 17 %Operating margin rate16.7 %13.8 %14.5 %13.7 %

Sales 

Current Quarter

Third quarter 2025 sales increased $270 million, or 10