Northrop Posts 6% Sales Increase in Q1, CEO Kathy Warden Points to Space Business as Growth Driver

Northrop Grumman (NYSE: NOC) reported $9.5 billion in sales for the first quarter of its 2021 fiscal year, up 6 percent from the prior year period, and attributed the increase to results from its space, aeronautics and mission systems segments.

The Falls Church, Virginia-based company said Thursday net bookings for the quarter totaled approximately $8.9 billion, which include a $2.6 billion contract to support the Missile Defense Agency’s Next Generation Interceptor development program, while backlog sat at $79.3 billion as of March 31.

Northrop’s defense systems segment was its only unit that experienced a decline in sales, which came in at $1.56 billion compared with $1.88 billion in the same period last year.

The space systems business reported a 29 percent sales jump for the January-March period to $2.5 billion.

“We do see the potential for space to continue to be a growth driver for our business and indeed, our fastest-growing segment,” Kathy Warden, CEO of Northrop and 2021 Wash100 Award recipient, said in the company’s earnings call Thursday.

Earnings per diluted share rose from $5.15 to $13.43 on a year-on-year basis as a result of the company’s financial performance.

The divestiture of Northrop’s information technology services business to Peraton in a $3.4 billion cash agreement that took effect Jan. 30 was also reflected in the Q1 results with $1.1 billion of net after-tax benefit, or $6.86 per diluted share.

Video of the Day

GovCon Wire Logo

Sign Up Now! GovCon Wire provides you with Daily Updates and News Briefings about Financial Report

Related Articles

The Ultimate Guide to Winning Government Contracts Let us show you how top executives are winning so you can replicate it