NORTHROP GRUMMAN CORP DE
For the period ended Dec 31, 2024. Filed Jan 30, 2025.
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FY2024 · Filed Jan 30, 2025
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Product and Service Analysis
The following table presents product and service sales and operating costs and expenses by segment:
| $ in millions | 2024 | 2023 | 2022 | |||
|---|---|---|---|---|---|---|
| Segment Information: | Sales | Operating Costs and Expenses | Sales | Operating Costs and Expenses | Sales | Operating Costs and Expenses |
| Aeronautics Systems | ||||||
| Product | $9,064 | $8,248 | $8,157 | $8,942 | $7,981 | $7,161 |
| Service | 2,723 | 2,382 | 2,389 | 2,099 | 2,311 | 2,042 |
| Intersegment eliminations | 243 | 218 | 240 | 218 | 239 | 212 |
| Total Aeronautics Systems | 12,030 | 10,848 | 10,786 | 11,259 | 10,531 | 9,415 |
| Defense Systems | ||||||
| Product | 5,843 | 5,304 | 5,282 | 4,819 | 4,604 | 4,163 |
| Service | 1,862 | 1,641 | 2,231 | 1,959 | 2,231 | 1,985 |
| Intersegment eliminations | 855 | 749 | 776 | 682 | 794 | 700 |
| Total Defense Systems | 8,560 | 7,694 | 8,289 | 7,460 | 7,629 | 6,848 |
| Mission Systems | ||||||
| Product | 8,076 | 7,000 | 7,749 | 6,669 | 7,376 | 6,291 |
| Service | 2,146 | 1,805 | 2,092 | 1,730 | 2,005 | 1,639 |
| Intersegment eliminations | 1,177 | 996 | 1,054 | 887 | 1,015 | 848 |
| Total Mission Systems | 11,399 | 9,801 | 10,895 | 9,286 | 10,396 | 8,778 |
| Space Systems | ||||||
| Product | 9,743 | 8,711 | 9,709 | 8,844 | 8,561 | 7,664 |
| Service | 1,576 | 1,398 | 1,681 | 1,468 | 1,533 | 1,404 |
| Intersegment eliminations | 412 | 368 | 483 | 431 | 476 | 424 |
| Total Space Systems | 11,731 | 10,477 | 11,873 | 10,743 | 10,570 | 9,492 |
| Total Product | $32,726 | $29,263 | $30,897 | $29,274 | $28,522 | $25,279 |
| Total Service | 8,307 | 7,226 | 8,393 | 7,256 | 8,080 | 7,070 |
| Total Segment(1) | $41,033 | $36,489 | $39,290 | $36,530 | $36,602 | $32,349 |
(1)A reconciliation of segment operating income to total operating income is included in “Segment Operating Results.”
Product Sales and Costs
2024 product sales increased $1.8 billion, or 6 percent, due to an increase in product sales at all four sectors. The increase was principally driven by higher volume on restricted programs, F-35, Triton and E-2 at Aeronautics Systems, higher volume on Sentinel, certain military ammunition programs, SiAW and GMLRS at Defense Systems, higher restricted sales, partially offset by lower SABR volume, at Mission Systems and sales growth on SDA satellite programs and HALO, partially offset by wind-down of work on the restricted space and NGI programs, at Space Systems.
2023 product sales increased $2.4 billion, or 8 percent, due to an increase in product sales at all four sectors. The increase was principally driven by higher volume on restricted programs and NGI at Space Systems, higher volume on Sentinel, ammunition programs, GMLRS, HACM, and the Integrated Battle Command System (IBCS) program at Defense Systems, and higher restricted sales at Mission Systems and Aeronautics Systems.
2024 product costs were comparable to the prior year, reflecting a higher operating margin rate principally due to the prior year $1.56 billion charge on the B-21 program at Aeronautics Systems and higher EAC adjustments at Space Systems, largely driven by the HALO program.
2023 product costs increased $4.0 billion, or 16 percent, consistent with the higher product sales described above and reflect a lower operating margin rate principally due to the previously described $1.56 billion charge on the B-21 program at Aeronautics Systems and lower net EAC adjustments on Space Systems production programs.
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Service Sales and Costs
2024 service sales decreased $86 million, or 1 percent, primarily due to a decrease in service sales at Defense Systems principally due to the completion of an international training program and lower volume on SEMA, partially offset by an increase in service sales at Aeronautics Systems driven by higher volume on restricted programs and Global Hawk.
2023 service sales increased $313 million, or 4 percent, due to an increase in service sales at Space Systems, Mission Systems, and Aeronautics Systems. The increase was principally driven by higher restricted sales at Space Systems and Aeronautics Systems, and higher volume on restricted programs and F-35 sustainment at Mission Systems.
2024 service costs were comparable to the prior year, consistent with the change in services sales described above.
2023 service costs increased $186 million, or 3 percent, consistent with the higher service sales described above and reflects a higher operating margin rate on Space Systems service programs.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.