Northrop Grumman
NOC NYSE Aerospace & Defense Financials FY2016–FY2025
Northrop Grumman's revenue rose 2.2% to $42.0 billion in fiscal 2025. Its operating margin was 10.8%, up from 10.7% a year earlier. Free cash flow was $3.3 billion, up 26.2%. It paid out $2.9 billion in dividends and buybacks, 88% of free cash flow. The diluted share count fell 2.4%.
What Northrop Grumman does
Northrop Grumman is an aerospace and defense company. It makes military aircraft, weapons, space systems and defense electronics, and sells them principally to the U.S. Department of War and the intelligence community, as well as to international customers. Sales to the U.S. government accounted for 84 percent of its sales in 2025. Most of its business comes from long-term government contracts for development, production and support. Some pay back its allowable costs plus a fee; others are fixed-price, which carry more risk if costs grow but can earn higher margins.
It reports four segments. Aeronautics Systems builds and maintains military aircraft, including the B-21 Raider long-range strike aircraft for the U.S. Air Force. Defense Systems makes strategic missiles, tactical weapons, ammunition and rocket motors, and works on Sentinel, the program to modernize the intercontinental ballistic missile system. Mission Systems makes radar, sensors, electronic warfare and communications systems. Space Systems makes satellites, missile defense systems and interceptors, and launch vehicles. Part of its work is on classified programs it calls restricted; for Space Systems, approximately 45 percent of the business.
Northrop Grumman names Boeing, General Dynamics, L3Harris, Lockheed Martin and RTX among its competitors, along with, increasingly, new entrants and startups. It notes that work on major defense programs is often shared, so a rival on one contract can be a supplier or customer on another. Its backlog, the work remaining on its contracts, was $95.7 billion at December 31, 2025, when it had approximately 95,000 employees.
- Legal name
- NORTHROP GRUMMAN CORP /DE/
- Fiscal year ends
- December 31, 2025
- Latest annual report
- 10-K · Jan 27, 2026
- Accession · CIK
- 0001133421-26-000003
0001133421
Revenue and margins
Northrop Grumman had $42.0B of revenue in fiscal 2025, up 2.2% on the year before.
Net income and earnings per share
From fiscal 2016 to 2025, diluted EPS grew 11.1% a year. Loss periods are shown in red.
Returns on capital
After-tax operating income as a share of the money invested in the business: debt plus equity, minus cash.
Cash flow
Free cash flow was $3.3B in fiscal 2025, 7.9% of revenue. Cash from operations minus capital spending.
Dividends, buybacks and share count
Northrop Grumman returned $2.9B to shareholders in fiscal 2025, 88% of free cash flow. The diluted share count fell 2.4%.
Value Northrop Grumman yourself
Change the assumptions and see what they imply per share. These are models, not forecasts or price targets — the answer depends entirely on what you put in.
Discounted cash flow
Value per share
—
Adds net cash of −$11.3B and divides by 143.8M diluted shares. Ten years of cash flows plus a terminal value, discounted to today.
Earnings multiple
Value per share
—
Reference multiples: today 17.4x · peers 24.1x · sector 26.0x.
Balance sheet
Cash, debt and the ratios that show how comfortably Northrop Grumman can carry it.
| Fiscal year end | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Cash and short-term investments | $3.5B | $2.6B | $3.1B | $4.4B | $4.4B |
| Debt incl. finance leases | $12.8B | $12.9B | $13.9B | $16.3B | $15.7B |
| Net debt / EBITDA | 1.3x | 2.1x | 2.8x | 2.1x | 1.9x |
| Debt / equity | 1.0x | 0.8x | 0.9x | 1.1x | 0.9x |
| Interest coverage | 10.2x | 7.1x | 4.7x | 7.0x | 6.8x |
| Current ratio | 1.3x | 1.1x | 1.2x | 1.0x | 1.1x |
| Quick ratio | 1.2x | 1.0x | 1.1x | 0.9x | 1.0x |
| Total assets | $42.6B | $43.8B | $46.5B | $49.4B | $51.4B |
| Total liabilities | $29.7B | $28.4B | $31.7B | $34.1B | $34.7B |
| Shareholders' equity | $12.9B | $15.3B | $14.8B | $15.3B | $16.7B |
| Net debt (− = net cash) | $9.3B | $10.3B | $10.7B | $11.9B | $11.3B |
Insider trades
Open-market purchases and sales by officers, directors and 10% owners, from Form 4 filings. 'Plan' marks trades under a pre-arranged Rule 10b5-1 plan.
Bought, 12 months
$0.0M
0 insiders
Sold, 12 months
$6.0M
5 insiders
Of sales under plans
55%
$3.3M
| Date | Insider | Trade | Shares | Price | Value | Filing |
|---|---|---|---|---|---|---|
| Aug 3, 2026 | Mark A Welsh IIIDirector | Sold plan | 95 | $547.53 | $0.1M | Form 4 |
| May 4, 2026 | Mark A Welsh IIIDirector | Sold plan | 95 | $571.68 | $0.1M | Form 4 |
| Mar 2, 2026 | Kathryn G SimpsonCorp VP & General Counsel | Sold plan | 873 | $745.00 | $0.7M | Form 4 |
| Feb 27, 2026 | Roshan S RoederCVP & Pres. Mission Systems | Sold plan | 1,754 | $720.00 | $1.3M | Form 4 |
| Feb 19, 2026 | Kathryn G SimpsonCorp VP & General Counsel | Sold plan | 194 | $727.62 | $0.1M | Form 4 |
| Feb 19, 2026 | Michael A HardestyCorp VP, Controller & CAO | Sold | 147 | $732.98 | $0.1M | Form 4 |
| Feb 19, 2026 | Roshan S RoederCVP & Pres. Mission Systems | Sold plan | 512 | $727.62 | $0.4M | Form 4 |
| Feb 18, 2026 | Benjamin R. DaviesCVP & Pres. Defense Systems | Sold | 2,189 | $719.61 | $1.6M | Form 4 |
| Feb 17, 2026 | Kathryn G SimpsonCorp VP & General Counsel | Sold plan | 779 | $702.56 | $0.5M | Form 4 |
| Feb 17, 2026 | Michael A HardestyCorp VP, Controller & CAO | Sold | 716 | $700.63 | $0.5M | Form 4 |
| Feb 17, 2026 | Roshan S RoederCVP & Pres. Mission Systems | Sold plan | 318 | $702.56 | $0.2M | Form 4 |
| Feb 13, 2026 | Michael A HardestyCorp VP, Controller & CAO | Sold | 784 | $702.43 | $0.6M | Form 4 |
Piotroski F-score
Nine pass/fail tests of profitability, funding and efficiency. 8–9 is strong, 0–2 weak.
| Test | FY23 | FY24 | FY25 |
|---|---|---|---|
| Net income is positive | ✓ | ✓ | ✓ |
| Cash from operations is positive | ✓ | ✓ | ✓ |
| Return on assets rose | ✕ | ✓ | ✕ |
| Cash from operations exceeds net income | ✓ | ✓ | ✓ |
| Debt fell relative to assets | ✕ | ✕ | ✓ |
| Current ratio rose | ✓ | ✕ | ✓ |
| Share count didn't rise | ✓ | ✓ | ✓ |
| Gross margin rose | — | — | — |
| Revenue rose relative to assets | ✓ | ✕ | ✕ |
| F-score | 6 / 8 | 5 / 8 | 6 / 8 |
| Accruals ratio | −4.0% | −0.5% | −1.1% |
| Altman Z'' | 2.14 | 2.10 | 2.33 |
Similar companies
Each company's latest fiscal year. Fiscal years end in different months, so periods don't line up exactly.
| Company | Market cap | Growth | Op. margin | FCF margin | ROIC | P/E | F-score | |
|---|---|---|---|---|---|---|---|---|
| Northrop Grumman NOC | $78.5B | 2.2% | 10.8% | 7.9% | 13.5% | 17.4x | 6 | |
| GE Aerospace GE | $297.4B | 18.5% | — | 15.8% | 35.8% | 33.0x | 5 | Compare → |
| General Dynamics GD | $95.8B | 10.1% | 10.2% | 7.5% | 14.4% | — | 8 | Compare → |
| Lockheed Martin LMT | $139.9B | 5.6% | 10.3% | 9.2% | 27.1% | 21.5x | 5 | Compare → |
| L3Harris LHX | $47.6B | 2.5% | 9.7% | 12.3% | 5.8% | 25.6x | 8 | Compare → |
10 years of figures
US$ millions unless stated. Hover a ratio's name for its definition.
| Fiscal year | FY16 | FY17 | FY18 | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|---|---|---|---|---|
| Income statement | ||||||||||
| Revenue | $24.7B | $26.0B | $30.1B | $33.8B | $36.8B | $35.7B | $36.6B | $39.3B | $41.0B | $42.0B |
| Gross profit | $13.7B | $13.7B | — | — | — | — | — | — | — | — |
| Research and development | $705M | $639M | $764M | $953M | $1.1B | $1.1B | $1.2B | $1.2B | $1.1B | $1.1B |
| Operating income | $3.3B | $3.2B | $3.8B | $4.0B | $4.1B | $5.7B | $3.6B | $2.5B | $4.4B | $4.5B |
| Interest expense | $301M | $360M | $562M | $528M | $593M | $556M | $506M | $545M | $621M | $665M |
| Pretax income | $2.7B | $4.2B | $3.7B | $2.5B | $3.7B | $8.9B | $5.8B | $2.3B | $5.0B | $5.1B |
| Income tax | $638M | $1.4B | $513M | $300M | $539M | $1.9B | $940M | $290M | $842M | $886M |
| Net income | $2.0B | $2.9B | $3.2B | $2.2B | $3.2B | $7.0B | $4.9B | $2.1B | $4.2B | $4.2B |
| Diluted EPS | $11.32 | $16.34 | $18.49 | $13.22 | $19.03 | $43.54 | $31.47 | $13.53 | $28.34 | $29.08 |
| Diluted shares | 0.18B | 0.18B | 0.17B | 0.17B | 0.17B | 0.16B | 0.16B | 0.15B | 0.15B | 0.14B |
| Cash flow | ||||||||||
| Cash from operations | $2.8B | $2.6B | $3.8B | $4.3B | $4.3B | $3.6B | $2.9B | $3.9B | $4.4B | $4.8B |
| Capital expenditure | $920M | $928M | $1.2B | $1.3B | $1.4B | $1.4B | $1.4B | $1.8B | $1.8B | $1.5B |
| Free cash flow | $1.9B | $1.7B | $2.6B | $3.0B | $2.9B | $2.2B | $1.5B | $2.1B | $2.6B | $3.3B |
| Depreciation and amortization | $456M | $475M | $800M | $1.3B | $1.3B | $1.2B | $1.3B | $1.3B | $1.4B | $1.5B |
| Stock-based compensation | $93.0M | $94.0M | $86.0M | $127M | $90.0M | $94.0M | $99.0M | $87.0M | $101M | $119M |
| Acquisitions | $0.0M | $0.0M | $7.7B | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M |
| Share buybacks | $1.5B | $393M | $1.3B | $744M | $490M | $3.7B | $1.5B | $1.5B | $2.5B | $1.6B |
| Dividends paid | $640M | $689M | $821M | $880M | $953M | $983M | $1.1B | $1.1B | $1.2B | $1.3B |
| Dividends and buybacks | $2.2B | $1.1B | $2.1B | $1.6B | $1.4B | $4.7B | $2.6B | $2.6B | $3.7B | $2.9B |
| Balance sheet | ||||||||||
| Cash and short-term investments | $2.5B | $11.2B | $1.6B | $2.2B | $4.9B | $3.5B | $2.6B | $3.1B | $4.4B | $4.4B |
| Total debt | $7.1B | $15.3B | $14.4B | $13.9B | $15.0B | $12.8B | $12.9B | $13.9B | $16.3B | $15.7B |
| Finance lease liabilities | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M |
| Current assets | $6.9B | $16.6B | $9.7B | $10.7B | $15.3B | $12.4B | $12.5B | $13.7B | $14.3B | $15.3B |
| Current liabilities | $5.6B | $7.1B | $8.3B | $9.4B | $9.6B | $9.5B | $11.6B | $11.9B | $14.1B | $13.9B |
| Inventory | $816M | $398M | $654M | $783M | $759M | $811M | $978M | $1.1B | $1.5B | $1.3B |
| Property and equipment, net | $3.6B | $4.2B | $6.4B | $6.9B | $7.1B | $7.9B | $8.8B | $9.7B | $10.5B | $11.0B |
| Total assets | $25.6B | $35.1B | $37.7B | $41.1B | $44.5B | $42.6B | $43.8B | $46.5B | $49.4B | $51.4B |
| Total liabilities | $20.4B | $28.0B | $29.5B | $32.3B | $33.9B | $29.7B | $28.4B | $31.7B | $34.1B | $34.7B |
| Shareholders' equity | $5.4B | $7.1B | $8.2B | $8.8B | $10.6B | $12.9B | $15.3B | $14.8B | $15.3B | $16.7B |
| Margins | ||||||||||
| Gross margin | 55.5% | 52.8% | — | — | — | — | — | — | — | — |
| Operating margin | 13.3% | 12.4% | 12.6% | 11.7% | 11.1% | 15.8% | 9.8% | 6.5% | 10.7% | 10.8% |
| EBITDA margin | 15.1% | 14.2% | 15.2% | 15.5% | 14.5% | 19.3% | 13.5% | 9.9% | 14.0% | 14.3% |
| Net margin | 8.3% | 11.0% | 10.7% | 6.6% | 8.7% | 19.6% | 13.4% | 5.2% | 10.2% | 10.0% |
| FCF margin | 7.7% | 6.5% | 8.6% | 9.0% | 7.8% | 6.0% | 4.0% | 5.3% | 6.4% | 7.9% |
| Returns | ||||||||||
| Return on capital | 25.5% | 20.7% | 20.3% | 16.9% | 16.9% | 20.7% | 12.6% | 8.7% | 13.8% | 13.5% |
| Return on capital employed | 16.8% | 13.4% | 13.2% | 13.0% | 12.2% | 16.6% | 11.0% | 7.6% | 12.5% | 12.4% |
| Return on equity | 37.5% | 45.9% | 42.2% | 26.4% | 32.9% | 59.6% | 34.7% | 13.7% | 27.8% | 26.2% |
| Return on assets | 8.2% | 9.5% | 8.9% | 5.7% | 7.5% | 16.1% | 11.3% | 4.6% | 8.7% | 8.3% |
| Growth | ||||||||||
| Revenue growth | 5.0% | 5.3% | 15.7% | 12.5% | 8.7% | −3.1% | 2.6% | 7.3% | 4.4% | 2.2% |
| Net income growth | 2.7% | 40.4% | 12.6% | −30.4% | 41.9% | 119.7% | −30.1% | −58.0% | 103.0% | 0.2% |
| EPS growth | 9.0% | 44.4% | 13.2% | −28.5% | 44.0% | 128.8% | −27.7% | −57.0% | 109.5% | 2.6% |
| FCF growth | 12.0% | −11.0% | 53.0% | 17.7% | −4.9% | −25.4% | −31.9% | 43.3% | 24.8% | 26.2% |
| Share count change | −5.8% | −2.7% | −0.6% | −2.6% | −1.4% | −4.0% | −3.3% | −2.3% | −3.1% | −2.4% |
| Financial health | ||||||||||
| Net debt / EBITDA | 1.2x | 1.1x | 2.8x | 2.2x | 1.9x | 1.3x | 2.1x | 2.8x | 2.1x | 1.9x |
| Debt / equity | 1.3x | 2.1x | 1.8x | 1.6x | 1.4x | 1.0x | 0.8x | 0.9x | 1.1x | 0.9x |
| Interest coverage | 10.9x | 8.9x | 6.7x | 7.5x | 6.9x | 10.2x | 7.1x | 4.7x | 7.0x | 6.8x |
| Current ratio | 1.2x | 2.3x | 1.2x | 1.1x | 1.6x | 1.3x | 1.1x | 1.2x | 1.0x | 1.1x |
| Quick ratio | 1.1x | 2.3x | 1.1x | 1.1x | 1.5x | 1.2x | 1.0x | 1.1x | 0.9x | 1.0x |
| Capital allocation | ||||||||||
| Capex / revenue | 3.7% | 3.6% | 4.2% | 3.7% | 3.9% | 4.0% | 3.9% | 4.5% | 4.3% | 3.5% |
| Stock comp / revenue | 0.4% | 0.4% | 0.3% | 0.4% | 0.2% | 0.3% | 0.3% | 0.2% | 0.3% | 0.3% |
| Payouts / FCF | 115.5% | 64.2% | 80.8% | 53.5% | 50.0% | 217.8% | 174.4% | 124.6% | 141.2% | 88.2% |
| Quality scores | ||||||||||
| Piotroski F-score | 7.0 | 6.0 | 5.0 | 6.0 | 7.0 | 5.0 | 4.0 | 6.0 | 5.0 | 6.0 |
| Altman Z'' | 2.8 | 3.3 | 1.9 | 1.8 | 2.6 | 2.8 | 2.4 | 2.1 | 2.1 | 2.3 |
| Accruals ratio | −3.1% | 0.8% | −1.6% | −5.2% | −2.6% | 7.9% | 4.6% | −4.0% | −0.5% | −1.1% |
Source: SEC EDGAR XBRL filings (CIK 0001133421). Data updated October 20, 2026. Quarterly fourth quarters are the full year minus the first nine months. For information only — not investment advice. Check the original filings before relying on any figure.