Northrop Grumman posts higher quarterly profit as geopolitical uncertainty fuels demand

Reuters
Jan 27
Northrop Grumman posts higher quarterly profit as geopolitical uncertainty fuels demand

By Mike Stone and Aishwarya Jain

Jan 27 (Reuters) - Aerospace and defense supplier Northrop Grumman NOC.N posted higher fourth-quarter profit and revenue on Tuesday, helped by strong sales in its aeronautics business amid heightened geopolitical uncertainty.

Robust demand for arms, fueled by escalating tensions in the Middle East and the ongoing Russia-Ukraine conflict, has boosted sales for Northrop Grumman and other defense contractors.

Global tensions have also been elevated as policies pursued by U.S. President Donald Trump — including the capture of the Venezuelan president and an aggressive bid to acquire Greenland — have ratcheted up strains in South America and left the NATO alliance in a state of unprecedented uncertainty.

Sales in Northrop's aeronautics segment, which produces the B-21 Raider long-range strike aircraft and fuselages for Lockheed Martin's LMT.N F-35 aircraft, rose 18% during the fourth quarter.

Falls Church, Virginia-based Northrop also saw strong fourth quarter sales in its mission systems business, which makes communications and electronic warfare systems mainly for the U.S. defense and intelligence community.

Sales in the mission systems segment rose 10%, largely due to a ramp-up in restricted airborne radar programs and strong demand for parts used in the F-35 aircraft.

Sales in Northrop's defense and space segments rose 7% and 5% during the quarter.

However, its 2026 sales forecast of $43.5 billion to $44 billion fell short of Wall Street estimates of $44.24 billion, as per LSEG-compiled data.

The defense supplier posted a total revenue of $11.71 billion for the quarter ended December 31, up about 10% from a year ago.

Excluding items, its per-share profit was $7.23 in the quarter, compared with $6.39 last year.

(Reporting by Aishwarya Jain in Bengaluru; Editing by Tasim Zahid)

((Aishwarya.Jain@thomsonreuters.com;))

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