Jane Edwards
Northrop Grumman reported $10.4 billion in fiscal year 2025 second-quarter sales, up 1 percent from the prior-year period, and posted $7.4 billion in Q2 net awards with a total backlog of $89.7 billion.
In an earnings release published Tuesday, the Falls Church, Virginia-based aerospace and defense contractor said its Q2 net earnings rose 25 percent to $1.2 billion and its diluted earnings per share increased 28 percent to $8.15 during the quarter.
The company’s Q2 operating income climbed 31 percent to $1.4 billion. Segment operating income during the quarter was $1.2 billion, up 11 percent from the same period the previous year.
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Northrop CEO Kathy Warden on Golden Dome
At Tuesday’s earnings call, Kathy Warden, chairman, CEO and president of Northrop, said she expects the company to play a key role in advancing the development of the Trump administration’s next-generation missile defense shield, known as Golden Dome for America.
Warden, a nine-time Wash100 awardee, cited some of the company’s current capabilities that could support the Golden Dome project, including the Integrated Battle Command System, Ground/Air Task-Oriented Radar, Triton unmanned aerial vehicle and other programs in Northrop’s restricted portfolio.
“It will also include new innovations like space-based interceptors, which we’re testing now. We have the ability to work across the entire architecture, and we bring the scale, innovation and research and development expertise that we can apply to each layer of this critical homeland defense initiative,” she noted.
“Golden Dome is just one example of how the administration is pushing for differentiating capabilities at speed and scale to achieve peace through strength,” she added.
The Northrop chief executive also mentioned the potential funding opportunities associated with the Golden Dome project.
“And we expect Golden Dome for America to be a significant driver of increased budget that would be available to our space sector and everything from space-based interceptors to the broader support to a Golden Dome for America architecture,” Warden told analysts.
“I’m equally excited about Golden Dome for America, which is a new set of opportunities, very significant funding there, as you know, in the reconciliation bill and our opportunity to pursue some of that work,” she added.
Q2 2025 Financial Performance of Northrop’s Defense Business & 3 Other Segments
Northrop’s defense systems business reported $1.99 billion in Q2 sales, up 7 percent from the same period the previous year due to higher sales on the company’s Sentinel and military ammunition programs.
The aeronautics systems segment saw its Q2 sales rise 2 percent to $3.1 billion, driven by a ramp-up on the E-130J TACAMO program and higher volume on the B-21 program.
The contractor’s mission systems business reported $3.1 billion in Q2 sales, up 14 percent from the prior-year period. The increase was attributed to higher volume on marine systems, international ground-based radar, advanced tech and navigation systems programs.
The space systems segment ended the second quarter with $2.6 billion in revenue, a 12 percent drop due to the wind-down of work on the Next Generation Interceptor and restricted space programs.
