NORTHROP GRUMMAN CORP /DE/

For the period ended Jun 30, 2025. Filed Jul 22, 2025.

About this filing

A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Jun 30, 2025 · Filed Jul 22, 2025

NOC$525.01-0.0%Stored close · as of Nov 6, 2026

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Contents

10. Segment Information

SEGMENT INFORMATION

The following table presents sales, operating costs and expenses, and operating income by segment:

	Three Months Ended June 30		Six Months Ended June 30
$ in millions	2025	2024	2025	2024
Aeronautics Systems
Sales	$3,114	$3,060	$5,928	$6,104
Operating costs and expenses:
Product	2,109	2,028	4,467	4,087
Service	649	692	1,250	1,341
Intersegment	35	28	73	58
Aeronautics Systems operating income	321	312	138	618
Defense Systems
Sales	1,991	1,859	3,796	3,596
Operating costs and expenses:
Product	1,372	1,295	2,634	2,495
Service	319	333	643	678
Intersegment	47	40	87	76
Defense Systems operating income	253	191	432	347
Mission Systems
Sales	3,157	2,773	5,964	5,432
Operating costs and expenses:
Product	1,945	1,685	3,675	3,290
Service	483	475	917	921
Intersegment	288	252	570	482
Mission Systems operating income	441	361	802	739
Space Systems
Sales	2,646	3,002	5,214	6,151
Operating costs and expenses:
Product	1,893	2,254	3,722	4,629
Service	362	355	724	705
Intersegment	111	89	205	183
Space Systems operating income	280	304	563	634
Intersegment profit eliminations	(76)	(67)	(148)	(133)
Total segment operating income	1,219	1,101	1,787	2,205
FAS/CAS operating adjustment	63	6	126	12
Unallocated corporate income (expense)	143	(17)	85	(56)
Total operating income	1,425	1,090	1,998	2,161
Other (expense) income
Interest expense	(173)	(154)	(329)	(300)
Non-operating FAS pension benefit	137	167	267	335
Other, net	38	43	69	81
Earnings before income taxes	$1,427	$1,146	$2,005	$2,277

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FAS/CAS Operating Adjustment

For financial statement purposes, we account for our employee pension plans in accordance with FAS. However, the cost of these plans is charged to our contracts in accordance with applicable Federal Acquisition Regulation (FAR) and CAS requirements. The FAS/CAS operating adjustment reflects the difference between CAS pension expense included as cost in segment operating income and the service cost component of FAS expense included in total operating income.

Unallocated Corporate Expense

Unallocated corporate expense includes the portion of corporate costs not considered allowable or allocable under applicable FAR and CAS requirements, and therefore not allocated to the segments, such as changes in deferred state income taxes and a portion of management and administration, legal, environmental, compensation, retiree benefits, advertising and other corporate unallowable costs. Unallocated corporate expense also includes costs not considered part of management’s evaluation of segment operating performance, such as amortization of purchased intangible assets and the additional depreciation expense related to the step-up in fair value of property, plant and equipment acquired through business combinations, as well as certain compensation and other costs.

During the second quarter of 2025, the $231 million pre-tax gain on the sale of our training services business and $19 million of unallowable state taxes and transaction costs associated with the divestiture were recorded in Unallocated corporate income (expense).

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Disaggregation of Revenue

Sales by Customer Type · Three Months Ended June 30 · Six Months Ended June 30
2025 · 2024 · 2025 · 2024
$ in millions	$%(3)	$%(3)	$%(3)	$%(3)
Aeronautics Systems
U.S. government(1)	$2,526	82%	$2,606	86%	$4,816	82%	$5,190	86%
International(2)	544	18%	415	14%	1,022	18%	839	14%
Other customers	6	—%	5	—%	11	—%	9	—%
Intersegment sales	38		34		79		66
Aeronautics Systems sales	3,114		3,060		5,928		6,104
Defense Systems
U.S. government(1)	1,611	83%	1,508	83%	3,062	83%	2,963	85%
International(2)	305	16%	287	16%	594	16%	506	14%
Other customers	22	1%	19	1%	42	1%	40	1%
Intersegment sales	53		45		98		87
Defense Systems sales	1,991		1,859		3,796		3,596
Mission Systems
U.S. government(1)	2,282	81%	2,028	82%	4,255	80%	3,940	81%
International(2)	505	18%	427	17%	980	19%	881	18%
Other customers	29	1%	21	1%	53	1%	37	1%
Intersegment sales	341		297		676		574
Mission Systems sales	3,157		2,773		5,964		5,432
Space Systems
U.S. government(1)	2,349	93%	2,746	95%	4,658	93%	5,639	95%
International(2)	47	2%	56	2%	91	2%	121	2%
Other customers	125	5%	100	3%	235	5%	186	3%
Intersegment sales	125		100		230		205
Space Systems sales	2,646		3,002		5,214		6,151
Total
U.S. government(1)	8,768	85%	8,888	87%	16,791	85%	17,732	87%
International(2)	1,401	13%	1,185	12%	2,687	13%	2,347	12%
Other customers	182	2%	145	1%	341	2%	272	1%
Total Sales	$10,351		$10,218		$19,819		$20,351

(1)Sales to the U.S. government include sales from contracts for which we are the prime contractor, as well as those for which we are a subcontractor and the ultimate customer is the U.S. government. Each of the company’s segments derives a substantial percentage of its revenue from the U.S. government.

(2) International sales include sales from contracts for which we are the prime contractor, as well as those for which we are a subcontractor and the ultimate customer is an international customer. These sales include foreign military sales contracted through the U.S. government.

(3) Percentages calculated based on external customer sales.

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Sales by Contract Type · Three Months Ended June 30 · Six Months Ended June 30
2025 · 2024 · 2025 · 2024
$ in millions	$%(1)	$%(1)	$%(1)	$%(1)
Aeronautics Systems
Cost-type	$1,461	47%	$1,415	47%	$2,800	48%	$2,759	46%
Fixed-price	1,615	53%	1,611	53%	3,049	52%	3,279	54%
Intersegment sales	38		34		79		66
Aeronautics Systems sales	3,114		3,060		5,928		6,104
Defense Systems
Cost-type	1,084	56%	967	53%	2,049	55%	1,878	54%
Fixed-price	854	44%	847	47%	1,649	45%	1,631	46%
Intersegment sales	53		45		98		87
Defense Systems sales	1,991		1,859		3,796		3,596
Mission Systems
Cost-type	1,406	50%	1,107	45%	2,569	49%	2,174	45%
Fixed-price	1,410	50%	1,369	55%	2,719	51%	2,684	55%
Intersegment sales	341		297		676		574
Mission Systems sales	3,157		2,773		5,964		5,432
Space Systems
Cost-type	1,562	62%	1,804	62%	3,102	62%	3,679	62%
Fixed-price	959	38%	1,098	38%	1,882	38%	2,267	38%
Intersegment sales	125		100		230		205
Space Systems sales	2,646		3,002		5,214		6,151
Total
Cost-type	5,513	53%	5,293	52%	10,520	53%	10,490	52%
Fixed-price	4,838	47%	4,925	48%	9,299	47%	9,861	48%
Total Sales	$10,351		$10,218		$19,819		$20,351

(1)Percentages calculated based on external customer sales.

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Sales by Geographic Region · Three Months Ended June 30 · Six Months Ended June 30
2025 · 2024 · 2025 · 2024
$ in millions	$%(3)	$%(3)	$%(3)	$%(3)
Aeronautics Systems
United States(1)	$2,532	82%	$2,611	86%	$4,827	82%	$5,199	86%
Asia/Pacific	226	8%	164	5%	426	8%	334	6%
Europe	301	10%	243	9%	570	10%	490	8%
Other geographic regions(2)	17	—%	8	—%	26	—%	15	—%
Intersegment sales	38		34		79		66
Aeronautics Systems sales	3,114		3,060		5,928		6,104
Defense Systems
United States(1)	1,633	84%	1,527	84%	3,104	84%	3,003	86%
Asia/Pacific	79	4%	80	4%	160	4%	130	4%
Europe	168	9%	164	10%	338	9%	296	8%
Other geographic regions(2)	58	3%	43	2%	96	3%	80	2%
Intersegment sales	53		45		98		87
Defense Systems sales	1,991		1,859		3,796		3,596
Mission Systems
United States(1)	2,311	82%	2,049	83%	4,308	81%	3,977	82%
Asia/Pacific	132	5%	122	5%	260	5%	248	5%
Europe	263	9%	226	9%	502	10%	481	10%
Other geographic regions(2)	110	4%	79	3%	218	4%	152	3%
Intersegment sales	341		297		676		574
Mission Systems sales	3,157		2,773		5,964		5,432
Space Systems
United States(1)	2,474	98%	2,846	98%	4,893	98%	5,825	98%
Asia/Pacific	15	1%	11	—%	23	—%	24	—%
Europe	20	1%	34	2%	46	2%	76	2%
Other geographic regions(2)	12	—%	11	—%	22	—%	21	—%
Intersegment sales	125		100		230		205
Space Systems sales	2,646		3,002		5,214		6,151
Total
United States(1)	8,950	87%	9,033	88%	17,132	87%	18,004	88%
Asia/Pacific	452	4%	377	4%	869	4%	736	4%
Europe	752	7%	667	7%	1,456	7%	1,343	7%
Other geographic regions(2)	197	2%	141	1%	362	2%	268	1%
Total Sales	$10,351		$10,218		$19,819		$20,351

(1)No country other than the United States represents greater than 10% of total company sales.

(2)Other geographic regions are principally comprised of the Middle East.

(3)Percentages calculated based on external customer sales.

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Capital Expenditures and Depreciation and Amortization

The following table presents capital expenditures and depreciation and amortization for each of our reportable segments and for Corporate:

	Three Months Ended June 30		Six Months Ended June 30
$ in millions	2025	2024	2025	2024
Capital Expenditures
Aeronautics Systems	$69	$116	$148	$200
Defense Systems	11	14	23	22
Mission Systems	47	38	86	81
Space Systems	71	146	181	273
Corporate (1)	33	6	49	14
Total	$231	$320	$487	$590
Depreciation and Amortization
Aeronautics Systems	$92	$99	$181	$174
Defense Systems	42	43	85	85
Mission Systems	68	62	135	124
Space Systems	84	81	163	160
Corporate (1)	64	41	123	82
Total	$350	$326	$687	$625

(1)Corporate amounts include the amortization of purchased intangible assets and the additional depreciation expense related to the step-up in fair value of PP&E acquired through business combinations as they are not considered part of management’s evaluation of segment operating performance.

Assets

Our chief operating decision maker (“CODM”) does not use assets by segment to evaluate segment performance or allocate resources. Therefore, we do not disclose assets by segment.

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ContentsView on SEC.gov

The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.