Northrop Grumman (NOC) Q4 2025 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Tue, January 27, 2026 astatine 10:00 AM CST 43 min read

Image source: The Motley Fool.

Tuesday, January 27, 2026 astatine 9:30 a.m. ET

• Chair, Chief Executive Officer, and President — Kathy J. Warden

• Former Corporate Vice President and Chief Financial Officer — Kenneth L. Crews

• Corporate Vice President and Chief Financial Officer — John D. Green

Need a punctuation from a Motley Fool analyst? Email [email protected]

Kathy Warden: Thanks, Todd. Good morning, and convey you for joining our 4th fourth and afloat twelvemonth 2025 net call. The Northrop Grumman Corporation squad delivered different 4th of beardown operating results, generating the highest quarterly income maturation of 2025 and exceeding expectations crossed our cardinal show metrics. Throughout the year, we kept a disciplined attack successful executing our strategy, remaining existent to our exertion enactment and ensuring our institution moves astatine the velocity of relevance, peculiarly arsenic our customers alteration the mode they get defence capabilities. This concern strategy includes our superior deployment plan, which prioritizes investments successful value-creating maturation opportunities, of which determination are galore successful this existent environment.

Northrop Grumman Corporation's portfolio is aligned to what US and planetary customers request close now, and we spot a wide way to continued coagulated maturation successful the future. We ended the twelvemonth with implicit $95 cardinal successful backlog, a caller institution record, driven by implicit $46 cardinal successful nett awards successful 2025. Our backlog has grown by astir $20 cardinal since 2021, and our five-year mean book-to-bill ratio has been 1.1 times. Our 2025 income and EPS some exceeded the precocious extremity of our guidance range, and escaped currency travel was $3.3 cardinal for the year. This represents a 26% summation successful escaped currency travel compared to 2024, the 3rd consecutive twelvemonth of astatine slightest 25% growth.

This beardown show provides momentum for our institution successful an accrued request situation and gives america continued assurance successful our outlook. This assurance is rooted successful our condemnation that we person a talented engineering and operations squad and a portfolio uniquely designed to present the capabilities needed by our US and planetary customers. In the US, we are aligned with the administration's and Congress's absorption connected expanding American manufacturing capabilities and capableness connected captious programs, ensuring technological superiority. We person purposely built and shaped our portfolio with a absorption connected our customers' request signal. We are a person successful processing and delivering precocious and often considered exquisite capabilities, which are astatine the halfway of US warfighting today.