Northrop Grumman Q2 Earnings Call Highlights
Northrop Grumman reported strong Q2 2026 results, raising its full-year sales guidance to $43.75-$44.25 billion and adjusted EPS guidance to $28.60-$29.10. The company achieved record bookings of $20 billion in net awards, driving a book-to-bill ratio of 1.84x and a record backlog of $105 billion, up 17% year-over-year. Revenue grew 5% year-over-year to $10.9 billion, with growth across all four segments. Management highlighted demand tied to U.S. defense priorities, international modernization, and programs in missiles, missile defense, autonomous aircraft, and national security space. However, cost pressures on specific programs—Defense Systems' SiAW and Space Systems' GEM 63XL—weighed on some margins. The company expects improved second-half margins and reaffirmed free cash flow expectations of $3.1-$3.5 billion. CEO Kathy Warden noted alignment with U.S. government priorities and continued support for core programs in the fiscal 2027 budget process.
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