FORM | 8-K | ||||
CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) | |||||
July 25, 2024 |
Delaware | 1-16411 | 80-0640649 | ||||||||||||
(State or Other Jurisdiction
of Incorporation or Organization)
|
(Commission File Number) |
(IRS Employer
Identification Number)
|
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common Stock | NOC | New York Stock Exchange |
(d) | Exhibits | ||||||||||
Furnished | |||||||||||
Exhibit 99 — Earnings Release dated July 25, 2024 |
NORTHROP GRUMMAN CORPORATION | ||||||||||||||||||||
(Registrant) | ||||||||||||||||||||
By: | /s/ Jennifer C. McGarey | |||||||||||||||||||
(Signature) Jennifer C. McGarey Corporate Vice President and Secretary |
Exhibit No. | ||
Exhibit 101 — Northrop Grumman Corporation Current Report on Form 8-K dated July 25, 2024, formatted as inline XBRL (Extensible Business Reporting Language): Cover Page. The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | ||
Exhibit 104 — Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
Exhibit 99 |
News Release | Contact: | Cindy Anderson (Media) |
||||||||||||
571-550-1814 |
||||||||||||||
cindy.anderson@ngc.com |
||||||||||||||
Todd Ernst (Investors) | ||||||||||||||
703-280-4535 |
||||||||||||||
todd.ernst@ngc.com |
1 Non-GAAP measure - see definitions at the end of this earnings release. | ||||||||
Northrop Grumman Corporation
2980 Fairview Park Drive • Falls Church, VA 22042-4511
news.northropgrumman.com
|
Northrop Grumman Reports Second Quarter 2024 Financial Results |
2 |
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||||||||||||||||
$ in millions, except per share amounts | 2024 | 2023 | Change | 2024 | 2023 | Change | |||||||||||||||||||||||||||||
Sales | |||||||||||||||||||||||||||||||||||
Aeronautics Systems | $ | 2,963 | $ | 2,595 | 14% | $ | 5,932 | $ | 5,110 | 16% | |||||||||||||||||||||||||
Defense Systems | 1,513 | 1,420 | 7% | 2,925 | 2,796 | 5% | |||||||||||||||||||||||||||||
Mission Systems | 2,773 | 2,641 | 5% | 5,432 | 5,204 | 4% | |||||||||||||||||||||||||||||
Space Systems | 3,573 | 3,488 | 2% | 7,228 | 6,838 | 6% | |||||||||||||||||||||||||||||
Intersegment eliminations | (604) | (568) | (1,166) | (1,071) | |||||||||||||||||||||||||||||||
Total sales | 10,218 | 9,576 | 7% | 20,351 | 18,877 | 8% | |||||||||||||||||||||||||||||
Operating income |
|||||||||||||||||||||||||||||||||||
Aeronautics Systems | 295 | 278 | 6% | 592 | 515 | 15% | |||||||||||||||||||||||||||||
Defense Systems | 204 | 166 | 23% | 381 | 326 | 17% | |||||||||||||||||||||||||||||
Mission Systems | 361 | 401 | (10%) | 739 | 761 | (3%) | |||||||||||||||||||||||||||||
Space Systems | 324 | 283 | 14% | 656 | 596 | 10% | |||||||||||||||||||||||||||||
Intersegment eliminations | (83) | (76) | (163) | (144) | |||||||||||||||||||||||||||||||
Segment operating income1 |
1,101 | 1,052 | 5% | 2,205 | 2,054 | 7% | |||||||||||||||||||||||||||||
Segment operating margin rate1 |
10.8 | % | 11.0 | % | (20) bps | 10.8 | % | 10.9 | % | (10) bps | |||||||||||||||||||||||||
FAS/CAS operating adjustment | 6 | (21) | NM | 12 | (42) | NM | |||||||||||||||||||||||||||||
Unallocated corporate expense: |
|||||||||||||||||||||||||||||||||||
Intangible asset amortization and PP&E step-up depreciation | (24) | (31) | (23%) | (49) | (61) | (20%) | |||||||||||||||||||||||||||||
Other unallocated corporate income (expense) |
7 | (33) | NM | (7) | (37) | (81%) | |||||||||||||||||||||||||||||
Unallocated corporate expense |
(17) | (64) | (73%) | (56) | (98) | (43%) | |||||||||||||||||||||||||||||
Total operating income |
$ | 1,090 | $ | 967 | 13% | $ | 2,161 | $ | 1,914 | 13% | |||||||||||||||||||||||||
Operating margin rate | 10.7 | % | 10.1 | % | 60 bps | 10.6 | % | 10.1 | % | 50 bps | |||||||||||||||||||||||||
Interest expense | (154) | (147) | 5% | (300) | (276) | 9% | |||||||||||||||||||||||||||||
Non-operating FAS pension benefit | 167 | 133 | 26% | 335 | 265 | 26% | |||||||||||||||||||||||||||||
Other, net | 43 | 34 | 26% | 81 | 82 | (1%) | |||||||||||||||||||||||||||||
Earnings before income taxes |
1,146 | 987 | 16% | 2,277 | 1,985 | 15% | |||||||||||||||||||||||||||||
Federal and foreign income tax expense |
206 | 175 | 18% | 393 | 331 | 19% | |||||||||||||||||||||||||||||
Effective income tax rate | 18.0 | % | 17.7 | % | 30 bps | 17.3 | % | 16.7 | % | 60 bps | |||||||||||||||||||||||||
Net earnings |
$ | 940 | $ | 812 | 16% | $ | 1,884 | $ | 1,654 | 14% | |||||||||||||||||||||||||
Diluted earnings per share |
6.36 | 5.34 | 19% | 12.69 | 10.83 | 17% | |||||||||||||||||||||||||||||
Weighted-average diluted shares outstanding, in millions | 147.7 | 152.2 | (3%) | 148.5 | 152.7 | (3%) | |||||||||||||||||||||||||||||
Net cash provided by operating activities | $ | 1,425 | $ | 919 | 55% | $ | 719 | $ | 217 | 231% | |||||||||||||||||||||||||
Capital expenditures | (320) | (304) | 5% | (590) | (613) | (4%) | |||||||||||||||||||||||||||||
Free cash flow1 |
$ | 1,105 | $ | 615 | 80% | $ | 129 | $ | (396) | 133% |
1 Non-GAAP measure - see definitions at the end of this earnings release. | ||||||||
Northrop Grumman Corporation
2980 Fairview Park Drive • Falls Church, VA 22042-4511
news.northropgrumman.com
|
Northrop Grumman Reports Second Quarter 2024 Financial Results |
3 |
1 Non-GAAP measure - see definitions at the end of this earnings release. | ||||||||
Northrop Grumman Corporation
2980 Fairview Park Drive • Falls Church, VA 22042-4511
news.northropgrumman.com
|
Northrop Grumman Reports Second Quarter 2024 Financial Results |
4 |
AERONAUTICS SYSTEMS |
Three Months Ended June 30 | % | Six Months Ended June 30 | % |
|||||||||||||||||||||||||||||||
$ in millions | 2024 | 2023 | Change | 2024 | 2023 | Change | |||||||||||||||||||||||||||||
Sales | $ | 2,963 | $ | 2,595 | 14 | % | $ | 5,932 | $ | 5,110 | 16 | % | |||||||||||||||||||||||
Operating income |
295 | 278 | 6 | % | 592 | 515 | 15 | % | |||||||||||||||||||||||||||
Operating margin rate | 10.0 | % | 10.7 | % | 10.0 | % | 10.1 | % |
DEFENSE SYSTEMS |
Three Months Ended June 30 | % | Six Months Ended June 30 | % |
|||||||||||||||||||||||||||||||
$ in millions | 2024 | 2023 | Change | 2024 | 2023 | Change | |||||||||||||||||||||||||||||
Sales | $ | 1,513 | $ | 1,420 | 7 | % | $ | 2,925 | $ | 2,796 | 5 | % | |||||||||||||||||||||||
Operating income | 204 | 166 | 23 | % | 381 | 326 | 17 | % | |||||||||||||||||||||||||||
Operating margin rate | 13.5 | % | 11.7 | % | 13.0 | % | 11.7 | % |
1 Non-GAAP measure - see definitions at the end of this earnings release. | ||||||||
Northrop Grumman Corporation
2980 Fairview Park Drive • Falls Church, VA 22042-4511
news.northropgrumman.com
|
Northrop Grumman Reports Second Quarter 2024 Financial Results |
5 |
MISSION SYSTEMS |
Three Months Ended June 30 | % | Six Months Ended June 30 | % |
|||||||||||||||||||||||||||||||
$ in millions | 2024 | 2023 | Change | 2024 | 2023 | Change | |||||||||||||||||||||||||||||
Sales | $ | 2,773 | $ | 2,641 | 5 | % | $ | 5,432 | $ | 5,204 | 4 | % | |||||||||||||||||||||||
Operating income | 361 | 401 | (10) | % | 739 | 761 | (3) | % | |||||||||||||||||||||||||||
Operating margin rate | 13.0 | % | 15.2 | % | 13.6 | % | 14.6 | % |
SPACE SYSTEMS |
Three Months Ended June 30 | % | Six Months Ended June 30 | % |
|||||||||||||||||||||||||||||||
$ in millions | 2024 | 2023 | Change | 2024 | 2023 | Change | |||||||||||||||||||||||||||||
Sales | $ | 3,573 | $ | 3,488 | 2 | % | $ | 7,228 | $ | 6,838 | 6 | % | |||||||||||||||||||||||
Operating income | 324 | 283 | 14 | % | 656 | 596 | 10 | % | |||||||||||||||||||||||||||
Operating margin rate | 9.1 | % | 8.1 | % | 9.1 | % | 8.7 | % |
1 Non-GAAP measure - see definitions at the end of this earnings release. | ||||||||
Northrop Grumman Corporation
2980 Fairview Park Drive • Falls Church, VA 22042-4511
news.northropgrumman.com
|
Northrop Grumman Reports Second Quarter 2024 Financial Results |
6 |
Northrop Grumman Corporation
2980 Fairview Park Drive • Falls Church, VA 22042-4511
news.northropgrumman.com
|
Northrop Grumman Reports Second Quarter 2024 Financial Results |
7 |
2024 Guidance | ||||||||||||||||||||
($ in millions, except per share amounts) | As of 4/25/2024 | As of 7/25/2024 |
||||||||||||||||||
Sales | $40,800 — $41,200 | $41,000 — $41,400 | ||||||||||||||||||
Segment operating income1 |
$4,475 — $4,550 | $4,500 — $4,575 | ||||||||||||||||||
Total net FAS/CAS pension adjustment2 |
~$700 | ~$700 | ||||||||||||||||||
Unallocated corporate expense | ||||||||||||||||||||
Intangible asset amortization & PP&E step-up depreciation | ~$100 | ~$100 | ||||||||||||||||||
Other items | ~$190 | ~$150 | ||||||||||||||||||
Operating income | $4,215 — $4,290 | $4,280 — $4,355 | ||||||||||||||||||
Interest expense | ~$660 | ~$650 | ||||||||||||||||||
Effective tax rate % | ~17% | Mid 17% | ||||||||||||||||||
Weighted average diluted shares outstanding | Mid 148 | Mid 147 | ||||||||||||||||||
MTM-adjusted EPS1 |
$24.45 — $24.85 | $24.90 — $25.30 | ||||||||||||||||||
Capital expenditures | ~$1,800 | ~$1,800 | ||||||||||||||||||
Free cash flow1 |
$2,250 — $2,650 | $2,250 — $2,650 | ||||||||||||||||||
2024 Segment Guidance3 | ||||||||
As of 7/25/2024 | ||||||||
Sales ($B) | OM Rate % | |||||||
Aeronautics Systems | High $11 | Mid to High 9% | ||||||
Defense Systems |
~$9 | ~10% | ||||||
Mission Systems | Mid $11 | Low to Mid 14% | ||||||
Space Systems |
Mid to High $11 | Low 10% | ||||||
Eliminations |
~($2.7) | Low 13% |
1 | Non-GAAP measure - see definitions at the end of this earnings release. | |||||||
2 | Total Net FAS/CAS pension adjustment is presented as a single amount and includes $270 million of expected CAS pension expense and $240 million of FAS pension service expense, both of which are reflected in operating income. Non-operating FAS pension benefit of $670 million is reflected below operating income, and the total net FAS/CAS pension adjustment is $700 million. |
|||||||
3 | Effective July 1, 2024, the company realigned the Strategic Deterrent Systems (SDS) division, which includes the Sentinel program, from Space Systems to Defense Systems. The realignment will be reflected in the company’s operating results beginning in the third quarter of 2024. As such, the company’s 2024 segment guidance as of 7/25/2024 has been updated to reflect the realigned segment composition. |
Northrop Grumman Corporation
2980 Fairview Park Drive • Falls Church, VA 22042-4511
news.northropgrumman.com
|
Northrop Grumman Reports Second Quarter 2024 Financial Results |
8 |
Northrop Grumman Corporation
2980 Fairview Park Drive • Falls Church, VA 22042-4511
news.northropgrumman.com
|
Northrop Grumman Reports Second Quarter 2024 Financial Results |
9 |
Northrop Grumman Corporation
2980 Fairview Park Drive • Falls Church, VA 22042-4511
news.northropgrumman.com
|
Northrop Grumman Reports Second Quarter 2024 Financial Results |
10 |
Northrop Grumman Corporation
2980 Fairview Park Drive • Falls Church, VA 22042-4511
news.northropgrumman.com
|
Northrop Grumman Reports Second Quarter 2024 Financial Results |
11 |
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||||
$ in millions, except per share amounts | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
Sales | |||||||||||||||||||||||
Product | $ | 8,076 | $ | 7,441 | $ | 16,178 | $ | 14,712 | |||||||||||||||
Service | 2,142 | 2,135 | 4,173 | 4,165 | |||||||||||||||||||
Total sales | 10,218 | 9,576 | 20,351 | 18,877 | |||||||||||||||||||
Operating costs and expenses | |||||||||||||||||||||||
Product | 6,388 | 5,876 | 12,799 | 11,603 | |||||||||||||||||||
Service | 1,639 | 1,660 | 3,228 | 3,249 | |||||||||||||||||||
General and administrative expenses | 1,101 | 1,073 | 2,163 | 2,111 | |||||||||||||||||||
Total operating costs and expenses | 9,128 | 8,609 | 18,190 | 16,963 | |||||||||||||||||||
Operating income | 1,090 | 967 | 2,161 | 1,914 | |||||||||||||||||||
Other (expense) income | |||||||||||||||||||||||
Interest expense | (154) | (147) | (300) | (276) | |||||||||||||||||||
Non-operating FAS pension benefit | 167 | 133 | 335 | 265 | |||||||||||||||||||
Other, net | 43 | 34 | 81 | 82 | |||||||||||||||||||
Earnings before income taxes | 1,146 | 987 | 2,277 | 1,985 | |||||||||||||||||||
Federal and foreign income tax expense | 206 | 175 | 393 | 331 | |||||||||||||||||||
Net earnings | $ | 940 | $ | 812 | $ | 1,884 | $ | 1,654 | |||||||||||||||
Basic earnings per share | $ | 6.37 | $ | 5.35 | $ | 12.72 | $ | 10.87 | |||||||||||||||
Weighted-average common shares outstanding, in millions | 147.5 | 151.7 | 148.1 | 152.1 | |||||||||||||||||||
Diluted earnings per share | $ | 6.36 | $ | 5.34 | $ | 12.69 | $ | 10.83 | |||||||||||||||
Weighted-average diluted shares outstanding, in millions | 147.7 | 152.2 | 148.5 | 152.7 | |||||||||||||||||||
Net earnings (from above) | $ | 940 | $ | 812 | $ | 1,884 | $ | 1,654 | |||||||||||||||
Other comprehensive (loss) income, net of tax | |||||||||||||||||||||||
Change in cumulative translation adjustment | (1) | 3 | — | 5 | |||||||||||||||||||
Change in other, net | (2) | (2) | (18) | (2) | |||||||||||||||||||
Other comprehensive (loss) income, net of tax | (3) | 1 | (18) | 3 | |||||||||||||||||||
Comprehensive income | $ | 937 | $ | 813 | $ | 1,866 | $ | 1,657 |
Northrop Grumman Corporation
2980 Fairview Park Drive • Falls Church, VA 22042-4511
news.northropgrumman.com
|
Northrop Grumman Reports Second Quarter 2024 Financial Results |
12 |
$ in millions, except par value | June 30, 2024 | December 31, 2023 | |||||||||
Assets | |||||||||||
Cash and cash equivalents | $ | 3,272 | $ | 3,109 | |||||||
Accounts receivable, net | 1,694 | 1,454 | |||||||||
Unbilled receivables, net | 6,434 | 5,693 | |||||||||
Inventoried costs, net | 1,504 | 1,109 | |||||||||
Prepaid expenses and other current assets | 1,363 | 2,341 | |||||||||
Total current assets | 14,267 | 13,706 | |||||||||
Property, plant and equipment, net of accumulated depreciation of $8,328 for 2024 and $7,964 for 2023 |
9,771 | 9,653 | |||||||||
Operating lease right-of-use assets | 1,823 | 1,818 | |||||||||
Goodwill | 17,516 | 17,517 | |||||||||
Intangible assets, net | 282 | 305 | |||||||||
Deferred tax assets | 1,250 | 1,020 | |||||||||
Other non-current assets | 2,761 | 2,525 | |||||||||
Total assets | $ | 47,670 | $ | 46,544 | |||||||
Liabilities | |||||||||||
Trade accounts payable | $ | 2,352 | $ | 2,110 | |||||||
Accrued employee compensation | 1,903 | 2,251 | |||||||||
Advance payments and billings in excess of costs incurred | 3,292 | 4,193 | |||||||||
Other current liabilities | 5,361 | 3,388 | |||||||||
Total current liabilities | 12,908 | 11,942 | |||||||||
Long-term debt, net of current portion of $1,590 for 2024 and $70 for 2023 |
14,706 | 13,786 | |||||||||
Pension and other postretirement benefit plan liabilities | 1,211 | 1,290 | |||||||||
Operating lease liabilities | 1,870 | 1,892 | |||||||||
Other non-current liabilities | 2,674 | 2,839 | |||||||||
Total liabilities | 33,369 | 31,749 | |||||||||
Shareholders’ equity | |||||||||||
Preferred stock, $1 par value; 10,000,000 shares authorized; no shares issued and outstanding |
— | — | |||||||||
Common stock, $1 par value; 800,000,000 shares authorized; issued and outstanding: 2024—146,463,372 and 2023—150,109,271 |
146 | 150 | |||||||||
Paid-in capital | — | — | |||||||||
Retained earnings | 14,301 | 14,773 | |||||||||
Accumulated other comprehensive loss | (146) | (128) | |||||||||
Total shareholders’ equity | 14,301 | 14,795 | |||||||||
Total liabilities and shareholders’ equity | $ | 47,670 | $ | 46,544 |
Northrop Grumman Corporation
2980 Fairview Park Drive • Falls Church, VA 22042-4511
news.northropgrumman.com
|
Northrop Grumman Reports Second Quarter 2024 Financial Results |
13 |
Six Months Ended June 30 | |||||||||||
$ in millions | 2024 | 2023 | |||||||||
Operating activities | |||||||||||
Net earnings | $ | 1,884 | $ | 1,654 | |||||||
Adjustments to reconcile to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 625 | 621 | |||||||||
Stock-based compensation | 46 | 47 | |||||||||
Deferred income taxes | (230) | (423) | |||||||||
Net periodic pension and OPB income | (226) | (154) | |||||||||
Pension and OPB contributions | (69) | (75) | |||||||||
Changes in assets and liabilities: | |||||||||||
Accounts receivable, net | (240) | (591) | |||||||||
Unbilled receivables, net | (741) | 110 | |||||||||
Inventoried costs, net | (398) | (331) | |||||||||
Prepaid expenses and other assets | 45 | 66 | |||||||||
Accounts payable and other liabilities | (918) | (1,043) | |||||||||
Income taxes payable, net | 925 | 285 | |||||||||
Other, net | 16 | 51 | |||||||||
Net cash provided by operating activities | 719 | 217 | |||||||||
Investing activities | |||||||||||
Capital expenditures | (590) | (613) | |||||||||
Other, net | — | 1 | |||||||||
Net cash used in investing activities | (590) | (612) | |||||||||
Financing activities | |||||||||||
Net proceeds from issuance of long-term debt | 2,495 | 1,995 | |||||||||
Net borrowings on commercial paper | — | 768 | |||||||||
Common stock repurchases | (1,752) | (931) | |||||||||
Cash dividends paid | (586) | (554) | |||||||||
Payments of employee taxes withheld from share-based awards | (57) | (50) | |||||||||
Other, net | (66) | (26) | |||||||||
Net cash provided by financing activities | 34 | 1,202 | |||||||||
Increase in cash and cash equivalents | 163 | 807 | |||||||||
Cash and cash equivalents, beginning of year | 3,109 | 2,577 | |||||||||
Cash and cash equivalents, end of period | $ | 3,272 | $ | 3,384 |
Northrop Grumman Corporation
2980 Fairview Park Drive • Falls Church, VA 22042-4511
news.northropgrumman.com
|
Northrop Grumman Reports Second Quarter 2024 Financial Results |
14 |
June 30, 2024 | December 31, 2023 | % Change in 2024 |
||||||||||||||||||||||||||||||
$ in millions | Funded1 |
Unfunded | Total Backlog2 |
Total Backlog2 |
||||||||||||||||||||||||||||
Aeronautics Systems | $ | 9,757 | $ | 8,698 | $ | 18,455 | $ | 19,583 | (6) | % | ||||||||||||||||||||||
Defense Systems | 6,599 | 1,388 | 7,987 | 8,064 | (1) | % | ||||||||||||||||||||||||||
Mission Systems | 11,048 | 4,217 | 15,265 | 16,108 | (5) | % | ||||||||||||||||||||||||||
Space Systems3 |
11,035 | 30,376 | 41,411 | 40,475 | 2 | % | ||||||||||||||||||||||||||
Total backlog | $ | 38,439 | $ | 44,679 | $ | 83,118 | $ | 84,230 | (1) | % |
1 | Funded backlog represents firm orders for which funding is authorized and appropriated. | |||||||
2 | Total backlog excludes unexercised contract options and indefinite delivery, indefinite quantity (IDIQ) contracts until the time the option or IDIQ task order is exercised or awarded. | |||||||
3 |
During the first quarter of 2024, the company reduced unfunded backlog by $1.6 billion related to a termination for convenience in our restricted space business. During the second quarter of 2024, the company reduced unfunded backlog by $0.7 billion related to a termination for convenience on the Next Generation Interceptor (NGI) program at Space Systems.
|
Northrop Grumman Corporation
2980 Fairview Park Drive • Falls Church, VA 22042-4511
news.northropgrumman.com
|
Northrop Grumman Reports Second Quarter 2024 Financial Results |
15 |
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||||
$ in millions, except per share amounts | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
Per share impact of total net FAS/CAS pension adjustment | |||||||||||||||||||||||
FAS/CAS operating adjustment | $ | 6 | $ | (21) | $ | 12 | $ | (42) | |||||||||||||||
Non-operating FAS pension benefit | 167 | 133 | 335 | 265 | |||||||||||||||||||
Total net FAS/CAS pension adjustment | 173 | 112 | 347 | 223 | |||||||||||||||||||
Tax effect1 |
(44) | (28) | (87) | (56) | |||||||||||||||||||
After-tax impact | $ | 129 | $ | 84 | $ | 260 | $ | 167 | |||||||||||||||
Weighted-average diluted shares outstanding, in millions | 147.7 | 152.2 | 148.5 | 152.7 | |||||||||||||||||||
Per share impact | $ | 0.87 | $ | 0.55 | $ | 1.75 | $ | 1.09 | |||||||||||||||
Per share impact of intangible asset amortization and PP&E step-up depreciation | |||||||||||||||||||||||
Intangible asset amortization and PP&E step-up depreciation | $ | (24) | $ | (31) | $ | (49) | $ | (61) | |||||||||||||||
Tax effect1 |
6 | 8 | 12 | 15 | |||||||||||||||||||
After-tax impact | $ | (18) | $ | (23) | $ | (37) | $ | (46) | |||||||||||||||
Weighted-average diluted shares outstanding, in millions | 147.7 | 152.2 | 148.5 | 152.7 | |||||||||||||||||||
Per share impact | $ | (0.12) | $ | (0.15) | $ | (0.25) | $ | (0.30) |
1 | Based on a 21% federal statutory tax rate and a 5.25% blended state tax rate. |
Northrop Grumman Corporation
2980 Fairview Park Drive • Falls Church, VA 22042-4511
news.northropgrumman.com
|
Northrop Grumman Reports Second Quarter 2024 Financial Results |
16 |
SALES | ||||||||||||||||||||||||||||||||
2022 | 2023 | 2024 | ||||||||||||||||||||||||||||||
Total | Three Months Ended | Total | Three Months Ended |
|||||||||||||||||||||||||||||
($ in millions) | Year | Mar 31 |
Jun 30 |
Sep 30 |
Dec 31 |
Year | Mar 31 | Jun 30 |
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AS REPORTED2 |
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Aeronautics Systems | $ | 10,531 | $ | 2,515 | $ | 2,595 | $ | 2,766 | $ | 2,910 | $ | 10,786 | $ | 2,969 | $ | 2,963 | ||||||||||||||||
Defense Systems | 5,579 | 1,376 | 1,420 | 1,421 | 1,645 | 5,862 | 1,412 | 1,513 | ||||||||||||||||||||||||
Mission Systems | 10,396 | 2,563 | 2,641 | 2,628 | 3,063 | 10,895 | 2,659 | 2,773 | ||||||||||||||||||||||||
Space Systems | 12,275 | 3,350 | 3,488 | 3,506 | 3,602 | 13,946 | 3,655 | 3,573 | ||||||||||||||||||||||||
Intersegment eliminations | (2,179) | (503) | (568) | (546) | (582) | (2,199) | (562) | (604) | ||||||||||||||||||||||||
Total |
$ | 36,602 | $ | 9,301 | $ | 9,576 | $ | 9,775 | $ | 10,638 | $ | 39,290 | $ | 10,133 | $ | 10,218 | ||||||||||||||||
REALIGNED3 |
||||||||||||||||||||||||||||||||
Aeronautics Systems | $ | 10,531 | $ | 2,515 | $ | 2,595 | $ | 2,766 | $ | 2,910 | $ | 10,786 | $ | 2,969 | $ | 2,963 | ||||||||||||||||
Defense Systems | 7,629 | 1,967 | 2,041 | 2,050 | 2,231 | 8,289 | 1,990 | 2,153 | ||||||||||||||||||||||||
Mission Systems | 10,396 | 2,563 | 2,641 | 2,628 | 3,063 | 10,895 | 2,659 | 2,773 | ||||||||||||||||||||||||
Space Systems | 10,570 | 2,851 | 2,971 | 2,953 | 3,098 | 11,873 | 3,149 | 3,002 | ||||||||||||||||||||||||
Intersegment eliminations | (2,524) | (595) | (672) | (622) | (664) | (2,553) | (634) | (673) | ||||||||||||||||||||||||
Total |
$ | 36,602 | $ | 9,301 | $ | 9,576 | $ | 9,775 | $ | 10,638 | $ | 39,290 | $ | 10,133 | $ | 10,218 |
SEGMENT OPERATING INCOME1 |
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2022 | 2023 | 2024 | ||||||||||||||||||||||||||||||
Total | Three Months Ended | Total | Three Months Ended |
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($ in millions) | Year | Mar 31 |
Jun 30 |
Sep 30 |
Dec 31 |
Year | Mar 31 | Jun 30 |
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AS REPORTED2 |
||||||||||||||||||||||||||||||||
Aeronautics Systems | $ | 1,116 | $ | 237 | $ | 278 | $ | 283 | $ | (1,271) | $ | (473) | $ | 297 | $ | 295 | ||||||||||||||||
Defense Systems | 664 | 160 | 166 | 182 | 202 | 710 | 177 | 204 | ||||||||||||||||||||||||
Mission Systems | 1,618 | 360 | 401 | 386 | 462 | 1,609 | 378 | 361 | ||||||||||||||||||||||||
Space Systems | 1,158 | 313 | 283 | 312 | 304 | 1,212 | 332 | 324 | ||||||||||||||||||||||||
Intersegment eliminations | (303) | (68) | (76) | (74) | (80) | (298) | (80) | (83) | ||||||||||||||||||||||||
Total |
$ | 4,253 | $ | 1,002 | $ | 1,052 | $ | 1,089 | $ | (383) | $ | 2,760 | $ | 1,104 | $ | 1,101 | ||||||||||||||||
REALIGNED3 |
||||||||||||||||||||||||||||||||
Aeronautics Systems | $ | 1,116 | $ | 237 | $ | 278 | $ | 283 | $ | (1,271) | $ | (473) | $ | 297 | $ | 295 | ||||||||||||||||
Defense Systems | 781 | 197 | 207 | 201 | 224 | 829 | 187 | 231 | ||||||||||||||||||||||||
Mission Systems | 1,618 | 360 | 401 | 386 | 462 | 1,609 | 378 | 361 | ||||||||||||||||||||||||
Space Systems | 1,078 | 286 | 252 | 302 | 290 | 1,130 | 330 | 304 | ||||||||||||||||||||||||
Intersegment eliminations | (340) | (78) | (86) | (83) | (88) | (335) | (88) | (90) | ||||||||||||||||||||||||
Total |
$ | 4,253 | $ | 1,002 | $ | 1,052 | $ | 1,089 | $ | (383) | $ | 2,760 | $ | 1,104 | $ | 1,101 |
1 | Non-GAAP measure - see definitions at the end of this earnings release. |
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2 | “As reported” summary operating results for the periods presented reflect the composition of our reportable segments prior to July 1, 2024 as previously disclosed in the company’s filings with the SEC. |
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3 | “Realigned” summary operating results for the periods presented were recast to reflect the realignment of the Strategic Deterrent Systems (SDS) division from Space Systems to Defense Systems effective July 1, 2024 as described in the company’s Form 8-K filed with the SEC on May 16, 2024. |
Northrop Grumman Corporation
2980 Fairview Park Drive • Falls Church, VA 22042-4511
news.northropgrumman.com
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Northrop Grumman Reports Second Quarter 2024 Financial Results |
17 |
Northrop Grumman Corporation
2980 Fairview Park Drive • Falls Church, VA 22042-4511
news.northropgrumman.com
|