Company: NOC
Filing Date: 2025-07-22
Form Type: 10-Q
Source: 0001133421-25-000049
Chunk: 91

Company: NORTHROP GRUMMAN CORP /DE/
Filing Date: 2025-07-22
Form: 10-Q
Item: Part I, Item 2
Chunk 91
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 to higher net EAC adjustments, including the $76 million favorable EAC adjustment on the Sentinel program described above.

MISSION SYSTEMSThree Months Ended June 30%Six Months Ended June 30%$ in millions20252024Change20252024ChangeSales$3,157 $2,773 14 %$5,964 $5,432 10 %Operating income441 361 22 %802 739 9 %Operating margin rate14.0 %13.0 %13.4 %13.6 %

Sales 

Current Quarter

Second quarter 2025 sales increased $384 million, or 14 percent, primarily due to the timing of a restricted award, which liquidated inventory purchased in advance of the award to support customer schedule, as well as higher volume on marine systems, international ground-based radar, advanced technologies and navigation systems programs.

Year to Date

Year to date 2025 sales increased $532 million, or 10 percent, primarily due to the restricted award timing described above, higher volume on the Scalable Agile Beam Radar (SABR) program and marine systems programs, and ramp-up on international ground-based radar programs. These increases were partially offset by lower volume on restricted advanced microelectronics programs.

Operating Income 

Current Quarter

Second quarter 2025 operating income increased $80 million, or 22 percent, due to higher sales and a higher operating margin rate. Operating margin rate increased to 14.0 percent from 13.0 percent, primarily due to higher net EAC adjustments driven by improved production efficiencies and program performance largely on airborne radar programs.

Year to Date

Year to date 2025 operating income increased $63 million, or 9 percent, primarily due to higher sales. Operating margin rate decreased to 13.4 percent from 13.6 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.

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Table of ContentsNORTHROP GRUMMAN CORPORATION                        

SPACE SYSTEMSThree Months Ended June 30%Six Months Ended June 30%$ in millions20252024Change20252024ChangeSales$2,646 $3,002 (12)%$5,214 $6,151 (15)%Operating income280 304 (8)%563 634 (11)%Operating margin rate10.6 %10