Q1 25 EPS
$3.32
MISS 46.96%
Est. $6.26
Q1 25 Revenue
$9.47B
vs S&P Since Q1 25
-14.3%
TRAILING MARKET
NOC +22.4% vs S&P +36.7%
Market Reaction
Did NOC Beat Earnings? Q1 2025 Results
Northrop Grumman delivered a sharply disappointing first quarter, with diluted EPS of $3.32 falling 46.96% short of the $6.26 consensus estimate as a $477 million pre-tax loss provision on the B-21 Raider bomber's low-rate initial production program … Read more Northrop Grumman delivered a sharply disappointing first quarter, with diluted EPS of $3.32 falling 46.96% short of the $6.26 consensus estimate as a $477 million pre-tax loss provision on the B-21 Raider bomber's low-rate initial production program carved $2.74 per share from results. The charge, driven by higher manufacturing costs tied to a production ramp acceleration and rising procurement expenses across five LRIP options, pushed Aeronautics Systems to a negative operating margin of 6.5%, a stark reversal from 10.1% a year earlier. Revenue declined 6.6% year-over-year to $9.47 billion, reflecting two fewer working days and the ongoing wind-down of certain Space Systems programs. Shares moved higher despite the miss, with investors drawing some comfort from a record $92.80 billion backlog and $10.80 billion in new awards. The company reaffirmed 2025 sales guidance of $42.00–$42.50 billion but lowered its MTM-adjusted EPS outlook to $24.95–$25.35 from $27.85–$28.25, squarely reflecting the B-21 headwind.
Key Takeaways
- • B-21 LRIP $477 million pre-tax loss provision due to manufacturing process change and higher material costs
- • Space Systems wind-down of restricted space and Next Generation Interceptor programs reducing sales by $228 million
- • Two fewer working days in Q1 2025 vs. Q1 2024
- • Defense Systems Sentinel program ramp-up and higher military ammunition volumes
- • Mission Systems growth driven by SABR radar, electronic warfare, and marine systems
- • Record backlog of $92.8 billion reflecting strong global demand
NOC YoY Financials
Q1 2025 vs Q1 2024, source: SEC Filings
NOC Revenue by Segment
With YoY comparisons, source: SEC Filings
“Global demand for our products remains strong, which is reflected in our record first quarter backlog, and we are making significant progress on our key programs.”
— Kathy Warden, Q1 2025 Earnings Press Release
NOC Earnings Trends
NOC vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
NOC EPS Trend
Earnings per share: estimate vs actual
NOC Revenue Trend
Quarterly revenue: estimate vs actual
NOC Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 | — | $6.14 | — | $9.88B | +1.28% |
| Q4 25 BEAT FY | $6.96 | $7.23 | +3.88% | $11.71B | — |
| FY Full Year | — | $26.34 | — | $41.95B | — |
| Q3 25 BEAT | $6.46 | $7.67 | +18.73% | $10.42B | — |
| Q2 25 BEAT | $6.80 | $8.15 | +19.85% | $10.35B | — |
| Q1 25 MISS | $6.26 | $3.32 | -46.96% | $9.47B | — |