NORTHROP GRUMMAN CORP /DE/
For the period ended Jun 30, 2025. Filed Jul 22, 2025.
View on SEC.govAbout 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
Extracted filing text, with the paragraph anchors used by the comparison.
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Product and Service Analysis
The following table presents product and service sales and operating costs and expenses by segment:
| Three Months Ended June 30 · Six Months Ended June 30 | ||||||||
|---|---|---|---|---|---|---|---|---|
| $ in millions | 2025 | 2024 | 2025 | 2024 | ||||
| Segment Information: | Sales | Operating Costs and Expenses | Sales | Operating Costs and Expenses | Sales | Operating Costs and Expenses | Sales | Operating Costs and Expenses |
| Aeronautics Systems | ||||||||
| Product | $2,328 | $2,109 | $2,221 | $2,028 | $4,419 | $4,467 | $4,506 | $4,087 |
| Service | 748 | 649 | 805 | 692 | 1,430 | 1,250 | 1,532 | 1,341 |
| Intersegment eliminations | 38 | 35 | 34 | 28 | 79 | 73 | 66 | 58 |
| Total Aeronautics Systems | 3,114 | 2,793 | 3,060 | 2,748 | 5,928 | 5,790 | 6,104 | 5,486 |
| Defense Systems | ||||||||
| Product | 1,577 | 1,372 | 1,433 | 1,295 | 2,982 | 2,634 | 2,736 | 2,495 |
| Service | 361 | 319 | 381 | 333 | 716 | 643 | 773 | 678 |
| Intersegment eliminations | 53 | 47 | 45 | 40 | 98 | 87 | 87 | 76 |
| Total Defense Systems | 1,991 | 1,738 | 1,859 | 1,668 | 3,796 | 3,364 | 3,596 | 3,249 |
| Mission Systems | ||||||||
| Product | 2,234 | 1,945 | 1,918 | 1,685 | 4,195 | 3,675 | 3,779 | 3,290 |
| Service | 582 | 483 | 558 | 475 | 1,093 | 917 | 1,079 | 921 |
| Intersegment eliminations | 341 | 288 | 297 | 252 | 676 | 570 | 574 | 482 |
| Total Mission Systems | 3,157 | 2,716 | 2,773 | 2,412 | 5,964 | 5,162 | 5,432 | 4,693 |
| Space Systems | ||||||||
| Product | 2,119 | 1,893 | 2,504 | 2,254 | 4,183 | 3,722 | 5,157 | 4,629 |
| Service | 402 | 362 | 398 | 355 | 801 | 724 | 789 | 705 |
| Intersegment eliminations | 125 | 111 | 100 | 89 | 230 | 205 | 205 | 183 |
| Total Space Systems | 2,646 | 2,366 | 3,002 | 2,698 | 5,214 | 4,651 | 6,151 | 5,517 |
| Segment Totals | ||||||||
| Total Product | $8,258 | $7,319 | $8,076 | $7,262 | $15,779 | $14,498 | $16,178 | $14,501 |
| Total Service | 2,093 | 1,813 | 2,142 | 1,855 | 4,040 | 3,534 | 4,173 | 3,645 |
| Total Segment(1) | $10,351 | $9,132 | $10,218 | $9,117 | $19,819 | $18,032 | $20,351 | $18,146 |
(1) A reconciliation of segment operating income to total operating income is included in “Segment Operating Results.”
Product Sales and Costs
Second quarter 2025 product sales increased $182 million, or 2 percent, primarily due to restricted award timing and higher volume on marine systems and international ground based radar programs at Mission Systems, higher sales on Sentinel and military ammunition programs at Defense Systems, and higher volume on the B-21 and TACAMO programs at Aeronautics Systems. These increases were partially offset by the wind-down of work on the restricted space and NGI programs at Space Systems.
Second quarter 2025 product costs increased $57 million, or 1 percent, consistent with the higher product sales described above and reflects a higher operating margin rate on product sales at all four sectors.
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Year to date 2025 product sales decreased $399 million, or 2 percent, primarily due to wind-down of work on the restricted space and NGI programs and lower sales for CRS missions and other restricted programs at Space Systems, as well as lower volume on restricted programs at Aeronautics Systems. These decreases were partially offset by restricted award timing and higher volume on the SABR program at Mission Systems, as well as higher sales on Sentinel and military ammunition programs at Defense Systems.
Year to date 2025 product costs were comparable to the prior year, reflecting a lower operating margin rate principally due to the $477 million loss provision recorded on the B-21 program at Aeronautics Systems in the first quarter of 2025, partially offset by higher net EAC adjustments at Defense Systems largely driven by the Sentinel program.
Service Sales and Costs
Second quarter 2025 service sales decreased $49 million, or 2 percent, primarily due to lower restricted sales at Aeronautics Systems and the training services divestiture at Defense Systems. Second quarter 2025 sales from the training services business, which were largely included in service sales, were $40 million as compared to $72 million in the prior year period.
Second quarter 2025 service costs decreased $42 million, or 2 percent, consistent with the lower service sales described above.
Year to date 2025 service sales decreased $133 million, or 3 percent, primarily due to lower restricted sales at Aeronautics Systems and the training services divestiture at Defense Systems. Year to date 2025 sales from the training services business, which were largely included in service sales, were $112 million as compared to $156 million in the prior year period.
Year to date 2025 service costs decreased $111 million, or 3 percent, consistent with the lower service sales described above.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.