A newÂ McAleese & AssociatesÂ report saysÂ Northrop GrummanÂ (NYSE: NOC)Â reported $13.5B in new awards during the second quarter of 2019 with a total backlog of $63B and a book-to-bill ratio of 1.6x.
Jim McAleese, founder and principal of McAleese & Associates and aÂ 2019 Wash100 winner,Â wrote the Falls Church, Va.-based defense contractor saw its Q2 sales climb 19 percent to $8.5B and recorded a sector operating profit growth of 26 percent driven by $130M new profit fromÂ its innovation systems business plus $56M profit spike fromÂ its mission systems segment.
Some of the new orders Northrop booked in the second quarter are the $4.1B for the F-35 program; $3.6B with the U.S. Navy for the delivery of additional 24 E-2D Advance Hawkeye aircraft and related equipment; $843MÂ for classified space programs; $265M for the Intermediate Range Conventional Prompt Strike hypersonic program; and $365M for the Global Hawk program.
Northrop Grumman Innovation Systems reported $1.5B in Q2 2019 sales and an operating margin of 11.3 percent, while the companyâs mission systems sector recorded a 9 percent sales growth and a sector operating profit growth of 16 percent.
The companyâs aerospace systems business posted a 2 percent growth in Q2 sales at $3.4B, while the technology services segment recorded $1B in sales during the quarter, according to the report.
Northrop CEO and aÂ 2019 Wash100Â winnerÂ Kathy WardenÂ said during the earnings call Wednesday that the company is positioned to support the U.S. Air Forceâs requirements for the potential $63B Ground Based Strategic DeterrentÂ program, McAleese noted in his report.
âThere is a 150-day response period, so we will be submitting our proposal late this year and still expect an award in the mid-to-late part of 2020,â Warden said of the request for proposals for GBSD. âWe have been executing tech maturation and risk-reduction for the last several years onÂ GBSD. We have been able to retire risk and really mature our offering â¦ wrung some of that risk out of our offering.â