NOC Northrop Grumman (NOC) Q2 FY25 earnings call
Northrop Grumman delivered a strong Q2 FY25, marked by a 9% sequential revenue increase across all segments and an 11.8% segment operating margin. The company raised its full-year guidance for segment operating income, EPS, and free cash flow, driven by operational strength and strategic program execution on Sentinel and B-21. International sales also saw robust growth, though tax reform changes partially offset the EPS uplift. Management is focused on strategic investments in capacity and new technologies like Beacon, while continuing to return capital to shareholders.
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NOC operating KPIs by quarter
| KPI | Dec 2024 Q4 FY24 | Mar 2025 Q1 FY25 | This call Jun 2025 Q2 FY25 | Sep 2025 Q3 FY25 | Dec 2025 Q4 FY25 | Mar 2026 Q1 FY26 | Jun 2026 Q2 FY26 | Sep 2026 Q3 FY26 | Change vs prior quarter |
|---|---|---|---|---|---|---|---|---|---|
| Backlog | ~$91.5BWe ended the year with a backlog of approximately $91.5 billion and a book-to-bill ratio at 1.23x, providing a solid foundation for future growth.Source: earnings call transcript | $92.8BWithin this environment, we continue to see strong demand signals from our global customers, resulting in another record backlog in the first quarter of $92.8 billion, and that's inclusive of strong international bookings.Source: earnings call transcript | — | — | $95B+We ended the year with over $95 billion in backlog, a new company record, driven by over $46 billion in net awards in 2025.Source: earnings call transcript | $96MAwards totaled $9.8 billion in Q1, and we ended the period with $96 million in backlog.Source: earnings call transcript | $105BBacklog continues to grow, including a new record high of $105 billion.Source: earnings call transcript | $110BIn the quarter, our book-to-bill was 1.5x, which drove a new record backlog of $110 billion, reflecting robust demand and years of durable sales.Source: earnings call transcript | +4.8% |
| Orders | $17.3BReflecting this demand, we booked $17.3 billion in new awards in the fourth quarter and approximately $51 billion for the full year.Source: earnings call transcript | — | — | — | — | $9.8BAwards totaled $9.8 billion in Q1, and we ended the period with $96 million in backlog.Source: earnings call transcript | $20BWe delivered $20 billion in net awards in the quarter, driving a book-to-bill ratio of 1.84x.Source: earnings call transcript | $16B+As Kathy shared, backlog increased 20% to $110 billion compared to the third quarter of last year, driven by bookings of over $16 billion.Source: earnings call transcript | — |
| Book-to-bill ratio International | — | 1.45 ratioAs a result, we continue to see opportunities to increase our international sales over the coming years, and we are making steady progress in this area, with a first quarter international book-to-bill of 1.45x and international sales up 11% in the quarter.Source: earnings call transcript | 1.4 ratioAnd we had seen that reflected in very strong book-to-bill, 1.4x in international.Source: earnings call transcript | — | — | — | — | — | -3.4% |
| Book-to-bill ratio | — | — | — | 1.17 ratioIn fact, we achieved an exceptionally strong book-to-bill of 1.17x in the quarter.Source: earnings call transcript | — | — | 1.84 ratioWe delivered $20 billion in net awards in the quarter, driving a book-to-bill ratio of 1.84x.Source: earnings call transcript | 1.5 ratioIn the quarter, our book-to-bill was 1.5x, which drove a new record backlog of $110 billion, reflecting robust demand and years of durable sales.Source: earnings call transcript | -18.5% |
Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.
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