Northrop Grumman Q1 2025 Results: Stock Tumbles On Downbeat Earnings, Lower Full-Year Guidance

Shares of aerospace and defense contractor Northrop Grumman Corp. (NOC) plunged over 12% on Tuesday after the company lowered its full-year guidance, and its first-quarter earnings and revenue failed to meet Wall Street expectations.

Total sales declined 6.5% year-over-year (YoY) to $9.47 billion, falling short of a Wall Street estimate of $9.95 billion. This was driven by lower sales at Space Systems, partly due to the wind-down of work on certain Space programs.

Earnings per share (EPS), excluding the impact of B-21 LRIP loss provision, stood at $6.06, missing a Street estimate of $6.26.

The company slashed its full-year 2025 operating income guidance to $4.2 billion to $4.35 billion compared to a previous forecast of $4.65 billion to $4.8 billion. It also reduced its MTM-adjusted EPS guidance to $24.95 to $25.35 compared to a previous guidance of $27.85 to $28.25.

Net income declined 49% YoY to $481 million during the quarter as the company recognized a pre-tax loss of $477 million across the five low-rate initial production (LRIP) options on the B-21 program at Aeronautics Systems.

CEO Kathy Warden stated that global demand for the company’s products remains strong, as reflected in its record Q1 backlog, and that the firm is making significant progress on key programs.

The company reported that its Q1 2025 net awards totaled $10.8 billion, with a backlog of $92.8 billion.

Segment-wise, Aeronautics Systems sales declined by 8% to $2.81 billion primarily due to lower sales on B-21 and other restricted programs, as well as a decrease in F-35 sustainment volume.

Defense Systems sales rose 4% to $1.81 billion, led by continued ramp-up on the Sentinel program and higher volume on certain military ammunition programs.

Mission Systems sales rose 6% to $2.81 billion primarily due to higher sales on the Scalable Agile Beam Radar (SABR) program, ramp-up on electronic warfare self-protection and international ground-based radar programs, and higher volume on marine systems programs.

However, Space Systems sales declined 18% to $2.57 billion due to the wind-down of work on the restricted space and Next Generation Interceptor (NGI) programs, and decreases for Commercial Resupply Services (CRS) missions, Space Development Agency (SDA) satellite programs, and other restricted space programs.

Northrop Grumman shares have declined 0.22% in 2025 and 0.85% in the past 12 months.

Also See: Halliburton Q1 2025 Earnings Align With Estimates, But Stock Slides As Revenue, Net Income Decline

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