Northrop Grumman Corp.

First Quarter Sales and Financial Adjustments: Northrop Grumman's first-quarter sales totaled $9.5 billion, down 7% year-over-year due to two fewer working days and delays in contracting, primarily impacting the B-21 program. The company recognized an additional pretax loss of $477 million related to increased manufacturing costs, impacting earnings per share (EPS) which was reported at $2.74, reflecting pressures from lower sales volume and higher corporate expenses.

Updated Financial Guidance: Northrop Grumman reaffirmed its 2025 sales guidance in the range of $42 billion to $42.5 billion, translating to 3% to 4% organic growth. They expect mid-single-digit growth in Q2, followed by stronger sales in the latter half of the year driven by previous awards and new program launches. The free cash flow guidance remains stable at $2.85 billion to $3.25 billion for 2025.

Record Backlog and Domestic Defense Spending: The company reported a record backlog of $92.8 billion, bolstered by increased demand from international customers and ongoing defense spending trends in the U.S. This includes a potential $150 billion increase in the defense budget due to congressional discussions, which Northrop Grumman aims to leverage for future growth.