NORTHROP GRUMMAN CORP /DE/
For the period ended Sep 30, 2025. Filed Oct 21, 2025.
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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.
Sep 30, 2025 · Filed Oct 21, 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 September 30 · Nine Months Ended September 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 | $2,296 | $2,108 | $2,170 | $1,956 | $6,715 | $6,575 | $6,676 | $6,043 |
| Service | 804 | 690 | 758 | 666 | 2,234 | 1,940 | 2,290 | 2,007 |
| Intersegment eliminations | 42 | 39 | 33 | 30 | 121 | 112 | 99 | 88 |
| Total Aeronautics Systems | 3,142 | 2,837 | 2,961 | 2,652 | 9,070 | 8,627 | 9,065 | 8,138 |
| Defense Systems | ||||||||
| Product | 1,657 | 1,483 | 1,392 | 1,269 | 4,639 | 4,117 | 4,128 | 3,764 |
| Service | 351 | 297 | 365 | 333 | 1,067 | 940 | 1,138 | 1,011 |
| Intersegment eliminations | 51 | 45 | 43 | 38 | 149 | 132 | 130 | 114 |
| Total Defense Systems | 2,059 | 1,825 | 1,800 | 1,640 | 5,855 | 5,189 | 5,396 | 4,889 |
| Mission Systems | ||||||||
| Product | 2,203 | 1,825 | 2,014 | 1,747 | 6,398 | 5,500 | 5,793 | 5,037 |
| Service | 551 | 466 | 534 | 451 | 1,644 | 1,383 | 1,613 | 1,372 |
| Intersegment eliminations | 339 | 287 | 275 | 235 | 1,015 | 857 | 849 | 717 |
| Total Mission Systems | 3,093 | 2,578 | 2,823 | 2,433 | 9,057 | 7,740 | 8,255 | 7,126 |
| Space Systems | ||||||||
| Product | 2,213 | 1,980 | 2,363 | 2,077 | 6,396 | 5,702 | 7,520 | 6,706 |
| Service | 348 | 297 | 400 | 351 | 1,149 | 1,021 | 1,189 | 1,056 |
| Intersegment eliminations | 137 | 123 | 107 | 97 | 367 | 328 | 312 | 280 |
| Total Space Systems | 2,698 | 2,400 | 2,870 | 2,525 | 7,912 | 7,051 | 9,021 | 8,042 |
| Segment Totals | ||||||||
| Total Product | $8,369 | $7,396 | $7,939 | $7,049 | $24,148 | $21,894 | $24,117 | $21,550 |
| Total Service | 2,054 | 1,750 | 2,057 | 1,801 | 6,094 | 5,284 | 6,230 | 5,446 |
| Total Segment(1) | $10,423 | $9,146 | $9,996 | $8,850 | $30,242 | $27,178 | $30,347 | $26,996 |
(1) A reconciliation of segment operating income to total operating income is included in “Segment Operating Results.”
Product Sales and Costs
Third quarter 2025 product sales increased $430 million, or 5 percent, primarily due to higher volume on military ammunition programs, the IBCS program portfolio and Sentinel at Defense Systems, higher sales on restricted advanced microelectronics, marine systems and international ground-based radar programs at Mission Systems, and higher volume on TACAMO and F-35 at Aeronautics Systems. These increases were partially offset by wind-down of work on the restricted space and NGI programs and lower volume on SDA satellite programs at Space Systems.
Third quarter 2025 product costs increased $347 million, or 5 percent, consistent with the higher product sales described above.
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Year to date 2025 product sales were comparable to the prior year and reflect higher sales on restricted airborne radar, marine systems and international ground-based radar programs at Mission Systems and higher volume on Sentinel, military ammunition programs and the IBCS program portfolio at Defense Systems, partially offset by wind-down of work on the restricted space and NGI programs and lower volume on SDA satellite programs at Space Systems.
Year to date 2025 product costs increased $344 million, or 2 percent, 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 Sentinel.
Service Sales and Costs
Third quarter 2025 service sales were comparable to the prior year and reflect lower restricted sales at Space Systems, partially offset by higher volume on aircraft sustainment services at Aeronautics Systems.
Third quarter 2025 service costs decreased $51 million, or 3 percent, reflecting a higher operating margin rate principally driven by higher net EAC adjustments across Defense Systems and Aeronautics Systems service programs.
Year to date 2025 service sales decreased $136 million, or 2 percent, primarily due to lower service volume at Defense Systems due to the training services divestiture and lower restricted sales at Aeronautics Systems.
Year to date 2025 service costs decreased $162 million, or 3 percent, reflecting a higher operating margin rate principally driven by higher net EAC adjustments across Aeronautics Systems, Mission Systems and Defense Systems service programs.
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