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Northrop Grumman Corporation, headquartered in West Falls Church, Virginia, is an American aerospace and defense company that designs and manufactures systems for aeronautics, defense, missions, and space. The company is the 5th largest contractor of the U.S. federal government; it receives over 2% of total spending by the federal government of the United States on contractors.[3][4][5]

Key Information

The company's Aeronautics Systems division (29% of 2024 revenues) develops the B-21 Raider strategic bomber that can drop conventional and thermonuclear weapons (forecasted to be ready for combat in 2029), the B-2 Spirit strategic bomber (which will be replaced by the B-21), fuselage and radar production for the Lockheed Martin F-35 Lightning II Joint Strike Fighter and F/A-18 Super Hornet, Grumman E-2 Hawkeye airborne early warning and control, MQ-4C Triton unmanned aerial vehicle, and the NATO Alliance Ground Surveillance Force.[2] The company's defense systems division (19% of 2024 revenues) designs the modernization of the intercontinental ballistic missile system including the LGM-35 Sentinel, the Integrated Air and Missile Defense Battle Command System, Vinnell training, and the M1156 precision guidance kit.[2] The company's mission systems division (25% of 2024 revenues) creates military radar, sensors, and related products, including C4I radar systems for air defense, Airspace Management radar systems such as AWACS, Multi-Platform Radar Technology Insertion Program, night vision goggles, Airport Movement Area Safety System, and battlefield surveillance systems like the Airborne Reconnaissance Low (ARL). Tactical aircraft sensors include the AN/APG-68 radar, the AN/APG-80 Active electronically scanned array radar, and the AN/APG-83 AESA radar upgrade for the F-16 Fighting Falcon, the AN/APG-77 AESA radar for the F-22 Raptor, and the AN/APG-81 AESA radar for the F-35 Lightning II, and the AN/AAQ-37 electro-optical Distributed Aperture System (DAS) for the F-35, and the APQ-164 Passive Electronically Scanned Array (PESA) radar for the B-1 Lancer.[2] The company's space systems division (27% of 2024 revenues) develops Satcom communications satellites, Next-Generation Overhead Persistent Infrared satellites, the Cygnus uncrewed spacecraft, motors for the NASA Space Launch System, logistics support for the Lunar Gateway, Graphite-Epoxy Motor solid rocket boosters, and satellites for the Norwegian Space Agency.[2]

The company is ranked 110th on the Fortune 500 list of America's largest corporations.[6] In 2024, 87% of the company's revenues came from the federal government of the United States, while 12% was from international sources.[2]

Northrop Grumman and its industry partners have won the Collier Trophy nine times, including for the development and production of the James Webb Space Telescope, a space telescope launched in 2021.[2]

The company was formed in 1994 through the merger of Northrop Corporation and Grumman Aerospace.

History

[edit]
The assembly line for Northrop P-61 Black Widows at the Northrop plant in Hawthorne, California, in World War II. Center wings and fuselages take shape on the left, with more nearly finished airplanes on the right.[7]

Northrop Grumman can trace its lineage back to the beginning of the 20th century when the Grumman Corporation was founded on Long Island, New York. Here, Leroy R. Grumman established the Grumman Aircraft Engineering Corporation in December 1929.[8] By 1939, the company has expanded and relocated to Bethpage, New York.[8] Among Grumman's well known naval aviation products was the F-14 Tomcat.[9] During World War II the company built most US Navy aircraft, including the TBF Avenger,[10] F4F Wildcat,[11] and F6F Hellcat.[12] After the war it branched out into making the first aluminum canoes using left-over materials no longer needed for aircraft. Later the firm created a myriad of products such as ballistic missiles, all-weather radars, the Apollo Lunar Module, land and sea-based fighter aircraft and Stealth bombers.[13]

Grumman F6F-3 Hellcats in tricolor camouflage

Founded in California in 1939 by Jack Northrop, the Northrop Corporation was reincorporated in Delaware in 1985.[14] Northrop made a series of light-weight fighter aircraft such as the F-5, YF-17, and F-20. However, Northrop was best known for its experimental flying wing aircraft, the XB-35 and YB-49 of the late 1940s and early 1950s. These flying wing aircraft, while unsuccessful, would pave the way for the B-2 Spirit Stealth Bomber, on which Northrop was the prime contractor.[15][16] During World War II, Northrop made the P-61 Black Widow, the first aircraft designed as a night fighter.[17] After the end of the Cold War, Northrop made a series of acquisitions, buying Grumman Aerospace, Westinghouse and TRW Inc. in addition to a number of other enterprises.[13][18]

In 2018, Northrop Grumman completed the purchase of Orbital ATK, which was renamed to Northrop Grumman Innovation Systems.[19] Innovation Systems was integrated into other parts of the business in a reorganization the following year.[20]

1990s

[edit]

In 1994, Northrop Aircraft bought Grumman Aerospace, which built the Apollo Lunar Module[21] to create Northrop Grumman (NG) at a cost of $2.1 billion.[22] After 1994, Northrop Grumman made several major acquisitions, including Vought,[23] Logicon,[24] Xetron Corporation,[25] the defense electronics business of Westinghouse Electronic Systems,[26] and Ryan Aeronautical.[27]

Northrop has competed in the Advanced Tactical Fighter program, submitting the YF-23 to compete against the F-22 Raptor in 1991.[28]

Northrop partnered with Lockheed on the F-35 and serves as a principal member of the Lockheed Martin industry led team.[29]

RQ-4 Global Hawk, a high-altitude, long-endurance surveillance platform

In 1998, a merger between Northrop Grumman and competitor Lockheed Martin was considered but abandoned after resistance from the Department of Defense and Department of Justice.[30] That same year, it acquired Inter-National Research Institute Inc. In 1999, the company acquired Teledyne Ryan, developer of surveillance systems and unmanned aircraft, California Microwave, Inc., and the Data Procurement Corporation.[31][32][33] In 1999, Northrop Grumman and SAIC created AMSEC LLC as a joint venture, which grew "from $100 million in revenue in 2000 to approximately $500 million in fiscal year 2007."[34]

2000s

[edit]

In 2000, NG acquired Federal Data Corporation, Navia Aviation As, Comptek Research, Inc., and Sterling Software, Inc.[35]

In 2001, the company acquired Litton Industries, a shipbuilder and defense electronics systems provider for the U.S. Navy.[36] During the acquisition process, a new Delaware holding company, NNG, Inc., was formed, which merged with Northrop Grumman through a one-for-one common shares exchange in April 2001. Both Northrop Grumman and Litton became subsidiaries of the new holding company. The original Northrop Grumman Corporation then changed its name to "Northrop Grumman Systems Corporation"; the holding company, NNG, Inc., changed its name to "Northrop Grumman Corporation". Later that year, Northrop Grumman acquired Newport News Shipbuilding.[37]

In 2002, Northrop Grumman acquired TRW Inc.[38] Northrop incorporated TRW's space and laser capabilities and system manufacturing infrastructure into its newly created Space Technology sector based in Redondo Beach, California (Space Park[39]), and the Mission Systems sector based in Reston, Virginia.[40]

Company logo used from 1994 to 2020

In July 2003, the company received a $48 million contract to train the Iraqi Army.[41]

In August 2005, the United Kingdom paid $1.2 billion in a contract with the company to provide maintenance of its AWACS radar.[42]

In November 2005, the company won a $2 billion contract with Virginia to overhaul most of the state's IT operations.[43]

On January 1, 2006, Northrop Grumman opened its business sector called 'Technical Services'.[44] Northrop Grumman and Boeing collaborated on a design concept for NASA's upcoming Orion spacecraft (previously the Crew Exploration Vehicle), but the contract went to rival Lockheed Martin on August 31, 2006.[45]

Northrop Grumman developed and built the B-2 Spirit strategic bomber.

In 2006, Northrop Grumman had intended to bid for the U.S. Air Force's Next-Generation Bomber. Though it has not built a large manned aircraft since wrapping up B-2 Spirit production in the 1990s, the company has "been working hard to turn that perception around, with the skills and capabilities that back it up."[46] However, by 2009, the teams working on that project were dispersed, as USAF's focus turned to a long-range strike instead. Northrop Grumman was one of two teams competing for the Long Range Strike Bomber, and in October 2015 won that contract.[47][48]

Mission Systems headquarters facility in Linthicum, Maryland

On July 20, 2007, Northrop Grumman became the sole owner of Burt Rutan's Scaled Composites.[49]

In 2007, Northrop Grumman created 'National Workforce Centers' as an alternative to offshoring.[50] Locations are Auburn, Alabama; Corsicana, Texas; Fairmont, West Virginia; Helena, Montana; Johnstown, Pennsylvania; and Lebanon, Virginia. The Rapid City, South Dakota location closed in January 2012.[51]

In August 2007, Northrop Grumman acquired Scaled Composites in which it had previously owned a 40% stake.[52]

In June 2008, Northrop Grumman began working with DHS Systems LLC, manufacturer of the Deployable Rapid Assembly Shelter (DRASH) in New York, as part of the U.S. Army's Standard Integrated Command Post System program.[53]

In July 2008, three of four Northrop Grumman employees (Thomas Howes, Marc Gonsalves and Keith Stansell) were freed during Operation Jaque after five years of captivity following their 2003 aircraft crash in the Colombian jungle.[54] The fourth employee, Tom Janis, had been killed by the FARC shortly after the crash.[55]

Main mirror assembly of the $8.7B James Webb Space Telescope, November 2016

2010s

[edit]

In March 2011, Northrop Grumman spun off its Shipbuilding unit as Huntington Ingalls Industries.[56]

In July 2013, Northrop Grumman won a training-simulation contract potentially worth $490 million to support the U.S. Air Force's next-generation aerial warfare virtual-training network.[57]

In 2015, Northrop Grumman won a contract for the DARPA Tactically Exploited Reconnaissance Node (TERN) program.[58]

In March 2015, the company delivered the first shipset for Australian EA-18G Growler.[59]

In October 2015, the US Military awarded Northrop Grumman the contract for the successor to the B-1 and B-52, subsequently identified as the B-21. The initial value is $21.4 billion, and could eventually be worth up to $80 billion.[60]

In September 2017, Northrop announced the acquisition of missile and rocket manufacturer Orbital ATK Inc for $9.2 billion: $7.8 billion in cash plus $1.4 billion in net debt.[61] On November 29, 2017, the acquisition was approved by Orbital ATK stockholders[62] and on June 6, 2018, the merger closed after final FTC approval. The acquired company assets and naming were absorbed and become a division named Northrop Grumman Innovation Systems.[63]

In January 2018, Northrop Grumman became the primary contractor for the James Webb Space Telescope.[64][65]

On June 7, 2018, the acquisition of Orbital ATK was completed, and it was absorbed in Northrop Grumman as a new business sector called Northrop Grumman Innovation Systems.[66][67]

2020s

[edit]

Effective January 1, 2020, the NGIS division was split, with most of the sector merging with other Northrop Grumman businesses into a new Space Systems sector.[68][69]

In June 2020, NASA granted a $935 million contract to Northrop Grumman for the Lunar Gateway Habitation and Logistics Outpost (HALO) module, based on its Cygnus cargo spacecraft.[70] In July 2022, Northrop subcontracted Solstar to provide the wireless-enabling technology to enable a Wi-Fi access for employees and equipment in the module.[71][72]

In September 2020, Northrop ended development of the OmegA space launch vehicle, intended to carry the U.S. government's national security satellites into space.[73]

In September 2020, Northrop Grumman won a $298 million sole-source contract for the Evolved Strategic Satcom program, an anti-jam communications satellite program intended to replace the Advanced Extremely High Frequency (AEHF) satellite program where Northrop Grumman was a subcontractor to Lockheed Martin.[74][75]

In February 2021, Northrop sold its federal IT and mission support business to Veritas Capital for $3.4 billion.[76][77]

In March 2021, NASA awarded Northrop Grumman the contract to develop the Mars Ascent Propulsion System for a Mars sample-return mission.[78] Northrop designed a solid-fueled rocket to launch samples collected by the Perseverance rover from Mars to Earth.[79]

Antares rocket (left); Cygnus spacecraft (right) held by ISS Canadarm2

In August 2022, Northrop Grumman announced it was moving production of the engines and structures for its Antares rockets to the U.S. from Russia and Ukraine in partnership with Texas-based Firefly Aerospace.[80] Northrop Grumman and Firefly Aerospace are jointly producing an upgraded version of the Antares rocket, the Antares 330.[80]

Northrop Grumman's B-21 Raider entered test flights in 2023,[81] with the goal of delivering the first plane by the end of the decade.[82]

On September 15, 2023, Northrop Grumman was sanctioned by the Chinese government due to U.S. arms sales to Taiwan.[83]

In May 2024, Northrop Grumman unveiled the Manta Ray, an underwater drone developed for the Defense Advanced Projects Research Agency (DARPA). The drone, which resembles its namesake sea creature, was designed to carry out long-duration, long-range military missions, including extended loitering on the sea bottom.[84] The craft uses two four-bladed propellers on the wings to enhance the propulsion provided by its gliding system, which glides forward while moving up and down in the water column by changing its buoyancy.[85] With an emphasis on minimal human oversight, the creation of the Manta Ray represents a significant advancement in unmanned underwater vehicles (UUV) technology.[84]

In September 2024, Northrop Grumman won the U.S. Missile Defense Agency (MDA) competition to develop and build the Glide Phase Interceptor (GPI).[86] In 2025, the company secured a contract with the U.S. Space Force to test in-space satellite refueling technology Northrop developed.[87] Northrop Grumman is also constructing ground stations to support the Next-Generation Overhead Persistent Infrared program.[88] In May 2025, the company invested $50 million in space startup Firefly to support production of their "Eclipse" rocket.[89]

Remotec

[edit]

Remotec, a Tennessee-based subsidiary, is a manufacturer of remote control vehicles for explosive ordnance disposal and hazardous material handling.[90] A UK-based subsidiary, Park Air Systems, provides VHF and UHF ground-to-air communications systems for the civil and defense markets. Northrop Grumman has also worked closely with Antenna Associates, Inc., a manufacturer of Identification friend or foe (IFF)/Secondary Surveillance Radar (SSR) antennas located in Massachusetts.[91]

Finances

[edit]
Year Revenue
in mil. US$
Operating income
in mil. US$
Total assets
in mil. US$
Employees
2014[92] 23,979 3,196 26,545 64,300
2015[92] 23,526 3,076 24,424 65,000
2016[92] 24,508 3,193 25,614 67,000
2017[92] 25,803 3,299 34,917 70,000
2018[93] 30,095 3,780 37,653 85,000
2019[94] 33,841 3,969 41,089 90,000
2020[95] 36,799 4,065 44,469 97,000
2021[95] 35,667 5,651 42,579 88,000
2022[96] 36,602 3,601 43,755 95,000
2023[97] 39,290 2,537 46,544 101,000
2024[2] 41,033 4,370 49,359 97,000

Corporate governance

[edit]

From 1990 to 2003, before the merger with Grumman in 1994, Kent Kresa was the CEO of the company, who led the serial-acquisition strategy with a total of 15 additional acquisitions from 1994 to 2003, including Litton, Logicon, Westinghouse's defense electronics business, Ryan Aeronautical and Newport News Shipbuilding, and TRW. He then retired in 2003 at age 65.

In 2003 Ronald Sugar, the former chief operating officer, took over as CEO.[98] Effective October 1, 2003, Sugar also served as the company chairman of the board.[99]

In January 2010, Wes Bush succeeded as CEO and became company president.[100]

In November 2015, Gloria Flach was named COO. She is the former president of the company's electric services sector.[101]

On July 12, 2018, Wes Bush announced that he would step down as CEO effective January 1, 2019, and would remain chairman of the board until July 2019. His successor is Kathy J. Warden, who has served in numerous roles at the company, most recently president and COO.

Board of directors

[edit]

As of July 22, 2022:[102]

Corporate headquarters

[edit]

Since 2011, Northrop Grumman's headquarters are in West Falls Church, Virginia (previously Jefferson), unincorporated Fairfax County, Virginia.[103][104]

Prior to 2010, the company was headquartered in Century City, Los Angeles,[105] but announced plans on January 4, 2010, to move to the Washington Metropolitan Area by 2011[106] to be closer to government customers.[107] CEO Wesley Bush stated that the company needed to be located close to Capitol Hill lawmakers and officials from intelligence and military communities.[108] Northrop Grumman considered sites in Washington, D.C., and in suburbs in Maryland and Virginia.[107] The Los Angeles Business Journal wrote "In a way, the announcement was not a surprise" due to the trend of aerospace companies moving to the DC area, the fact that the new CEO is from West Virginia and that CEOs often move corporate headquarters to places that they want the headquarters located. A Los Angeles area economic development consultant described the move announcement as a "structural failure at all levels for Los Angeles County."[108]

District of Columbia economic development officials were "pitching the city's urban hipness and proximity to Capitol Hill power brokers" to Northrop Grumman. Maryland promoted its highly educated workforce and its large number of federal facilities, while Virginia marketed itself as a state with relatively low taxes.[109]

In July 2010, the company announced its purchase of an existing building in Fairfax County and its move in summer 2011. It planned to consolidate its Century City headquarters and its existing Arlington County, Virginia, offices into the new headquarters. It employed about 40,000 in the Washington DC metropolitan area, including DC and surrounding Maryland and Virginia.[103]

Accolades and criticism

[edit]

Northrop Grumman was named Forbes's Company of the Year in 2002.[98] Forbes's announcement credited the company with "master[ing] the art of innovation."[110] As of 2019, the company is included on Forbes' list of "America's Best Large Employers".[111]

Since 2005 Northrop Grumman credits itself with sponsoring educational programs[112] and donating thousands of dollars to various charities.[113][114]

Many members of the U.S. government have attended company events and spoken highly of the company and its contributions, for example John McCain.[115] In December 2007, Northrop Grumman Corporation was awarded the Ron Brown Award for Corporate Leadership, the only presidential award recognizing companies for outstanding achievement in employee and community relations.[116]

Environmental record

[edit]

In 2000, Northrop Grumman was designated a Primary Responsible Party under federal Superfund laws at 13 hazardous waste sites and under state Superfund laws at eight sites.[117] The corporation has also been linked to 52 superfund toxic waste sites.[118] Based on 2008 data, Northrop Grumman was the 62nd-largest corporate producer of air pollution in the United States, per the Political Economy Research Institute of the University of Massachusetts Amherst. Northrop Grumman facilities released more than 23,798 pounds of toxic chemicals into the air in that year.[119]

In 2002, the Bethpage Community Park in Bethpage, New York, owned by the company until the 1960s, was closed due to soil contamination with polychlorinated biphenyls (PCBs).[120] The company dumped cadmium, arsenic, chromium-tainted sludge, solvents, paints and PCBs at the site between 1949 and 1962.[120] Additionally, two toxic chemical plumes centered under Bethpage Community Park and other surrounding land formerly owned by Grumman or Northrop Grumman have spread to under neighboring houses.[120] In November 2013, the Bethpage Water District filed a multimillion-dollar lawsuit against Northrop Grumman in Federal Court for the Eastern District of New York for contaminating the groundwater in Bethpage.[121][122]

In 2003, the company was among 84 parties with which the United States Environmental Protection Agency, the U.S. Department of Justice, and the state of New York reached an estimated US$15 million settlement for the rehabilitation of the Mattiace Petrochemical Company Superfund site in Glen Cove, Long Island.[123] In the same year, Northrop Grumman agreed to pay $33,214 after EPA inspectors found hazardous waste violations at the Capistrano test site.[124]

As a response to many of the previous claims, the company has stood up as an organization for social responsibility.[citation needed] In 2008, Northrop Grumman launched its Environmental Sustainability program and an EHS Leadership Council, to advance its commitment to environmental performance both internally and externally. The Greenhouse Gas Inventory Project was launched to accurately quantify company-wide greenhouse gas emissions and to reduce the carbon footprint of Northrop Grumman operations, in anticipation of upcoming regulations.[125]

In October 2010, the company was named one of Computerworld's Top 12 Green-IT Organizations for its large-scale data center migration effort.[126]

In 2019, Northrop Grumman was named the US's largest corporate contributor to water pollution by the Political Economy Research Institute of the University of Massachusetts Amherst.[127]

Political contributions and governmental ties

[edit]

From 1990 to 2002, Northrop Grumman contributed $8.5 million to federal campaigns.[128] According to Political action committee (PAC) summary data compiled by Source Watch, the company gave US$1,011,260 to federal candidates in the 2005–2006 election cycle, compared to $10,612,837 given by all defense contractors in the same cycle.[129] This donation amount was only behind that of General Dynamics and Lockheed Martin in the defense industry. The majority of the contributions, 63%, went to Republicans.[130] Former Northrop Grumman Electronics Systems chief James G. Roche served as Secretary of the Air Force for two years under George W. Bush. Roche would eventually be nominated to head the Army, but withdrew his nomination among accusations of mismanaging a contract with Boeing and for failing to properly handle the Air Force sexual assault scandals of 2003.[131] According to CorpWatch, "at least seven former officials, consultants, or shareholders of Northrop Grumman" have held posts "in the Bush administration...including Deputy Secretary of Defense Paul Wolfowitz, Vice-Presidential Chief of Staff I. Lewis Libby, Pentagon Comptroller Dov S. Zakheim, and Sean O'Keefe, director of NASA." Wolfowitz and Libby have both since left the government amid scandals.[132]

The company engages third-party lobbying firms in jurisdictions where it has interests. For example, in South Australia it works with lobbying firm CMAX Communications.[133]

Controversies

[edit]

In the late 1980s and early 1990s, Northrop was the target of several high-profile criminal and civil cases.[134]

In 1995, Robert Ferro, an employee for TRW Inc., a company Northrop Grumman acquired in 2002, discovered that satellite components manufactured for the U.S. Air Force (USAF) were faulty and likely to fail in operation. TRW suppressed Ferro's report of the problem and hid the information from the USAF, even after a satellite in space equipped with the faulty components experienced serious anomalies. Ferro later sued Northrop Grumman in federal court under the federal whistle-blower law.[135]

In 1999, the company was sued for knowingly giving the Navy defective aircraft. This suit sought $210 million in damages.[136] Ten years later, on April 2, 2009, Northrop Grumman agreed to pay $325 million to settle the suit.[137] Ferro was awarded $48.8 million of the settlement. Northrop Grumman stated, "it believed that TRW had 'acted properly under its contracts' and that the company had substantive defenses against the claims."[138]

In 2001, federal investigators probed NG for fraud of more than $100 million, systematic overcharging for radar jammers and other high-tech devices used in the B-1 bomber, the F-15 fighter and the B-2 Stealth bomber.[139] In 2003, the company was sued for overcharging the U.S. government for space projects in the 1990s.[140] Northrop Grumman paid $111.2 million to settle out of court.[141]

From August 25 to September 2, 2010, Virginia's computer system operated by NG, under a $2.4 billion contract, experienced an outage which resulted in around 45,000 citizens not being able to renew their drivers licenses prior to their expiration. Computer systems for 26 of the state's 89 agencies were affected and Governor Bob McDonnell announced that some data may have been permanently lost.[142][143] In 2010 Northrop Grumman apologized for the outage, and agreed to fund an investigation.

In 2012, controversy began over Northrop Grumman's Integrated Air and Missile Defense Battle Command System (IBCS), when it missed its first deadline. Since then, the system has had a number of controversial developments.[144] In 2016, a Director, Operational Test and Evaluation found a number of major faults with the system, concluding it was "neither mature nor stable".[145]

Northrop Grumman's supply of weapons to Israel led to protests against the company during the Gaza war, including blocking the entrances at facilities in San Diego and Plymouth, Minnesota.[146][147][148][149] Students on hunger strike at Brown University named Northrop Grumman as a company to divest from.[150]

International Traffic in Arms Regulations (ITAR) violations

[edit]

U.S. State Department investigators found that Litton Industries, a subsidiary acquired by Northrop Grumman in 2000, had provided portions of source code used by guidance and navigation system interfaces aboard Air Force One to a company in Russia in 1998. Northrop Grumman agreed to pay a $15 million fine for 110 violations, occurring between September 1998 and November 1998, of the Arms Export Control Act and the International Traffic in Arms Regulations (ITAR).[151]

Additionally, documents filed by the State Department state that between 1994 and 2003, Northrop Grumman failed to notify the U.S. State Department about the computer guidance systems also being transferred to Angola, Indonesia, Israel, China, Ukraine and Yemen.[152]

See also

[edit]

References

[edit]
[edit]
Revisions and contributorsEdit on WikipediaRead on Wikipedia
from Grokipedia
Northrop Grumman Corporation is a leading American multinational aerospace, defense, and security company headquartered in Falls Church, Virginia, focused on developing advanced technologies in space, aeronautics, cyber, and mission systems to address national security challenges. Formed in 1994 through the merger of Northrop Corporation and Grumman Corporation, it integrates legacies from over 20 pioneering firms in aviation and electronics, with the bulk of its operations serving U.S. government contracts. In 2025, the company reported revenue of $42.0 billion and net earnings of $4.2 billion, with a market capitalization of approximately $95 billion. The company excels in producing strategic assets such as the B-2 Spirit stealth bomber, which embodies its pioneering "" designs originating from founder Jack Northrop's innovations, the B-21 Raider next-generation stealth bomber under development for the U.S. Air Force, and the RQ-4 Global Hawk for high-altitude surveillance. Northrop Grumman also contributes critical components to , including the sunshield for the and systems for that counter advanced threats. Its sectors span Systems for combat aircraft, Space Systems for satellites and launch vehicles, Mission Systems for C4ISR capabilities, and Defense Systems for munitions and radars. While renowned for technological advancements that enhance deterrence and exploration, Northrop Grumman has encountered controversies, including multimillion-dollar settlements for defective parts in programs and lapses in weapons systems, alongside environmental liabilities from historical manufacturing sites designated as locations. These issues highlight operational challenges in complex defense production, though the firm maintains in secure and autonomous systems amid evolving geopolitical demands.

Overview

Corporate Profile and Mission

Northrop Grumman Corporation is an American aerospace and defense technology company headquartered in Falls Church, Virginia. The firm employs approximately 97,000 personnel and generated trailing twelve-month sales of $40.9 billion as of September 30, 2025. It operates across four primary business sectors—aeronautics systems, mission systems, space systems, and defense systems—focusing on the design, development, production, and sustainment of advanced military platforms, including aircraft, unmanned systems, missiles, and space technologies. In fiscal year 2024, 87 percent of its revenue derived from U.S. federal government contracts, underscoring its central role in national security programs. The company's mission centers on solving complex challenges in , , defense, and to fulfill evolving customer requirements globally. Northrop Grumman commits to enhancing global security and advancing human discovery by delivering pioneering solutions that transform concepts into operational capabilities. Its values prioritize relentless innovation, curiosity, and dedication, enabling teams to tackle the most demanding technical problems through expertise in cyber-secure systems, autonomous technologies, and integrated mission solutions. This approach positions the company as a key provider of strategic technologies, such as stealth bombers, systems, and payloads, primarily supporting defense and missions.

Strategic Focus and Market Position

Northrop Grumman maintains a strategic emphasis on developing advanced technologies in space, aeronautics, defense, and cyberspace to solve complex national security challenges for the United States and its allies. The company's priorities include sustaining technological superiority through innovation, rigorous performance execution, and targeted capital investments that prioritize value creation, such as expanding manufacturing scale for accelerated development and cost-efficient production of critical components like solid rocket motors. A core focus involves transitioning high-profile programs, including the B-21 Raider long-range strike bomber, while fostering industrial readiness and cross-sector collaboration to transform concepts into deployable systems. In the global defense market, Northrop Grumman occupies a leading position among prime contractors, with primary revenue from U.S. government contracts, particularly the Department of Defense and intelligence agencies. As of September 30, 2025, its funded backlog stood at $91.4 billion following $12.2 billion in third-quarter net awards, underscoring sustained demand for aeronautics, mission systems, and space capabilities. Third-quarter sales reached $10.4 billion, up 4% from the prior year, driven by organic growth in key segments, though full-year 2025 sales guidance was refined to $41.7-41.9 billion due to award timing shifts. The company's market strength is bolstered by elevated demand for and strategic platforms, enabling upward revisions to 2025 profit forecasts and positioning it for mid-single-digit organic sales growth in 2026, with operating margins targeted in the low- to mid-11% range. Employing around 100,000 personnel, Northrop Grumman leverages its expertise in autonomous and networked systems to compete effectively against peers like and RTX, while pursuing international and commercial opportunities to diversify beyond core U.S. defense reliance.

History

Founding and Pre-Merger Developments

The originated from Northrop Aircraft, Inc., established in 1939 in , by aviation engineer , who sought to advance his long-held vision of tailless "" designs that minimized drag and radar detectability through blended wing-body configurations. Northrop's prior ventures, including a 1928 Avion Corporation absorbed into United Aircraft and a partnership with Douglas , laid groundwork for these innovations, but the 1939 entity marked the focused pursuit of all-wing prototypes like the N-1M, which achieved its first flight in 1940. During , Northrop shifted to production demands, manufacturing components for other firms and developing the P-61 Black Widow, the U.S. military's first dedicated , with over 700 units produced by war's end, incorporating and heavy armament for intercept roles. , the company revived concepts, securing contracts for the YB-35 and YB-49 bombers in the late , though program cancellations in 1949 due to technical challenges and competing jet designs strained finances, leading to Northrop's temporary focus on missiles and electronics. Independently, the Grumman Aircraft Engineering Corporation was founded on December 5, 1929, in , by Leroy R. Grumman and partners, initially as a repair shop for aircraft before transitioning to design with the two-seat FF-1 biplane fighter, which secured a U.S. contract in 1931 and entered service in 1933 as the first fighter for carrier operations. Grumman's emphasis on rugged, retractable-gear naval aircraft propelled wartime expansion, producing approximately 18,000 F4F Wildcats, 12,000 F6F , and 10,000 TBF Avengers, which proved instrumental in Pacific naval battles for their durability and combat effectiveness. In the postwar era, Grumman diversified into jets like the F9F Panther and F11F Tiger, while venturing into space with the Lunar Excursion Module for Apollo missions, contracting in 1962 to build the vehicle that enabled the 1969 , alongside continued naval strike aircraft such as the A-6 Intruder. By the , both firms navigated defense budget fluctuations and industry consolidation, with Northrop excelling in stealth technologies precursor to the B-2 Spirit and Grumman in electronic warfare systems, setting the stage for their 1994 combination amid post-Cold War pressures.

Key Mergers and Acquisitions

In April 1994, merged with Corporation, forming Northrop Grumman Corporation and establishing a diversified and defense firm with combined revenues exceeding $5 billion annually at the time. The transaction involved Northrop acquiring Grumman shares at $62 each, integrating Grumman's expertise in naval and systems. Northrop Grumman pursued further consolidation in the defense sector during the and early . In March 1996, it acquired the defense and electronics systems businesses of , adding radar and avionics technologies. This was followed by the 1997 purchase of Logicon Inc., a provider of defense and services, which enhanced battlefield management capabilities. Major expansions continued into shipbuilding and systems integration. In January 2001, Northrop Grumman completed the acquisition of Litton Industries for $5.1 billion, including $1.3 billion in assumed net debt, bolstering electronics, ship repair, and command-and-control systems for the U.S. Navy. The company also acquired Newport News Shipbuilding in 2001, gaining nuclear-powered aircraft carrier and submarine construction expertise, though this asset was later divested in 2008. In December 2002, it acquired TRW Inc. for $7.8 billion in stock, incorporating advanced space systems, missile defense, and automotive operations (the latter sold off shortly thereafter), positioning Northrop Grumman as the second-largest U.S. defense contractor by revenue. A significant modern acquisition occurred in June 2018, when Northrop Grumman purchased Orbital ATK for $9.2 billion ($7.8 billion in cash plus $1.4 billion in assumed debt), integrating , satellites, and munitions production to strengthen and hypersonic capabilities. These transactions reflected a of amid post-Cold War industry rationalization, with Northrop Grumman executing over 20 acquisitions since 1994 to achieve scale in high-barrier defense markets.

1990s Consolidation

The formation of Northrop Grumman Corporation occurred on July 1, 1994, through the merger of Northrop Corporation and Grumman Corporation, valued at $2.17 billion with Northrop paying $62 per share in a deal that outbid rival Martin Marietta's $55 per share offer. This merger integrated Northrop's expertise in advanced aircraft such as the B-2 Spirit bomber with Grumman's strengths in naval aviation and electronics, creating a more diversified defense contractor amid post-Cold War budget cuts that prompted widespread industry consolidation to achieve economies of scale and maintain competitiveness for shrinking Pentagon contracts. The combined entity reported initial annual revenues of approximately $5 billion, positioning it as a mid-tier player behind giants like Lockheed and Boeing but enhancing its bid capabilities across multiple domains. Building on this foundation, Northrop Grumman pursued strategic acquisitions to expand into and systems integration, acquiring Westinghouse Electric Corporation's defense and systems on March 1, 1996, for $3 billion in cash plus assumption of about $600 million in pension and post-retirement liabilities. This purchase added key assets including radar systems, equipment, and over 8,000 employees primarily at facilities in , shifting the company's focus from pure toward integrated electronic warfare and technologies essential for modern defense platforms. In 1997, Northrop Grumman further consolidated its capabilities by acquiring Logicon Inc. in a $750 million stock-for-stock transaction completed later that year, incorporating Logicon's expertise in training simulations, battlefield management systems, and defense IT services. This move aligned with the era's emphasis on command, control, communications, computers, intelligence, surveillance, and (C4ISR) systems, as the U.S. Department of Defense prioritized networked warfare over legacy platforms. The acquisition spree reflected broader industry trends, where mergers reduced the number of major prime contractors from over 50 in 1990 to fewer than 10 by decade's end, driven by antitrust scrutiny but enabled by government approvals to foster efficiency. A proposed $11.6 billion merger with in , which would have created the world's largest defense firm, collapsed in 1998 due to U.S. Department of Justice antitrust concerns over reduced in key sectors like and electronics. Smaller deals in 1998 and 1999, including the purchase of Inter-National and Teledyne (a developer of unmanned systems), further bolstered niche capabilities in and without triggering similar regulatory hurdles. By the end of the decade, these consolidations had diversified Northrop Grumman's portfolio, mitigating risks from fluctuating procurement while establishing it as a leader in high-technology defense solutions amid a contracting market.

2000s Growth and Challenges

![RQ-4 Global Hawk][float-right] In the early 2000s, Northrop Grumman pursued aggressive expansion through strategic acquisitions to bolster its defense capabilities. The company completed its merger with in May 2001, enhancing its electronics and shipbuilding expertise. In January , it finalized the acquisition of , gaining significant naval vessel production capacity. The capstone was the 2002 merger with TRW for approximately $7.8 billion, which integrated advanced space and automotive systems, though full operational integration extended into 2003. These moves, following the sale of non-core in 2000 for $1.2 billion to refocus on defense electronics and , positioned the company for growth amid rising post-9/11 U.S. military spending. Defense contract awards surged during this period, reflecting heightened demand for and systems. In the second quarter of 2001 alone, Northrop Grumman secured $10.1 billion in contracts, including funded backlog from acquisitions. Programs like the RQ-4 Global Hawk achieved operational status, supporting intelligence and reconnaissance needs in ongoing conflicts. Revenue growth was sustained through these integrations and federal contracts, with the company reorganizing into focused segments by mid-decade to streamline operations across , , and mission systems. However, growth brought challenges, including legal and financial scrutiny. Northrop Grumman faced multiple False Claims Act settlements, such as $1.4 million in 2000 for alleged overcharging on government contracts and $62 million in 2005 for similar billing irregularities—the largest such settlement at the time. In 2009, it paid $325 million over defective parts supplied for satellites. Acquisition integrations posed operational hurdles, with reports of implementation difficulties in merging cultures and systems. The exacerbated pressures, leading to a $2.2 billion fourth-quarter operating loss that year due to charges, though recovery followed in 2009 with improved margins. These issues highlighted risks in government-dependent revenue and compliance demands, yet the company's scale enabled resilience.

2010s Technological Focus

During the 2010s, Northrop Grumman emphasized advancements in unmanned aerial systems, building on the RQ-4 Global Hawk platform with expanded production and integration capabilities; the company declared 2010 as "the year of the Global Hawk," securing contracts for additional Block 40 variants equipped with enhanced multi-intelligence sensors for persistent surveillance. The X-47B demonstrator, part of the U.S. Navy's UCAS-D program, achieved key milestones including autonomous carrier landings in 2013, validating technologies for carrier-based unmanned air systems with reduced pilot risk. These efforts prioritized autonomy, low-observable designs, and to support intelligence, surveillance, and reconnaissance missions in contested environments. In , the company shifted focus toward next-generation stealth platforms, contributing to U.S. planning for the starting in 2011 and securing the engineering and manufacturing development contract for the B-21 Raider in September 2015. The B-21 incorporated for rapid upgrades, emphasizing low-risk integration of advanced stealth materials, digital engineering, and networked warfare capabilities to ensure penetration of sophisticated air defenses. This program leveraged lessons from prior like the B-2 Spirit, focusing on affordability through modular design and competition for subsystems. Space systems development accelerated with contributions to NASA's , where Northrop Grumman led the element assembly, completing the primary mirror structure by 2011 for deep-space . The company also advanced launch and cargo capabilities through partnerships, including the (TESS) bus integration launched in 2018 for exoplanet detection, and solid rocket motor production for the beginning in the mid-2010s. These initiatives underscored a commitment to precision optics, cryogenic systems, and heavy-lift propulsion for scientific and missions. Mission systems innovations targeted and electronic warfare, with releases like the SPEED software version 11.1.1 in 2013 incorporating 3D mission planning and interference analysis for . Northrop Grumman promoted workforce development in cybersecurity through public-private initiatives in 2010, addressing threats via full-spectrum solutions including threat detection and secure networking. These technologies integrated with platforms like the E-2D Hawkeye for airborne early warning, enhancing command-and-control in cyber-contested domains.

2020s Recent Advancements

In 2020, Northrop Grumman secured a $298 million sole-source contract from the U.S. for the Evolved Strategic SATCOM program, developing anti-jam communications to enhance secure military data links in contested environments. This built on the company's expertise in protected architectures, with the first satellite's design emphasizing resilience against electronic warfare threats. Subsequent modifications expanded the program's scope, reflecting sustained investment in space-based amid rising great-power competition. The B-21 Raider stealth bomber program marked a pivotal advancement, with the aircraft's public rollout on December 2, 2022, at Northrop Grumman's Palmdale facility, showcasing its sixth-generation design for deep penetration strikes. The first flight occurred in late November 2023 from Plant 42 in Palmdale, California, validating low-observable features and open systems architecture for rapid upgrades. By March 2025, production was reported ahead of schedule and on budget, with low-rate initial production underway at facilities in Melbourne, Florida, and expansion planned for fiscal year 2026 to support at least 100 aircraft. A second Raider prototype flew on September 11, 2025, incorporating advanced digital engineering to accelerate testing and integration of sensors and weapons. Initial operational capability is targeted for the mid-2020s at Ellsworth Air Force Base, positioning the B-21 as a backbone for long-range strike amid evolving threats from peer adversaries. In hypersonics, Northrop Grumman progressed propulsion and guidance technologies, with a key milestone in 2025 when its Advanced Hypersonic Technology completed a third successful test within six months, demonstrating reusability and precision navigation at speeds exceeding Mach 5. This unit supports boost-glide and variants, addressing gaps in maneuverability and survivability against advanced air defenses. The company also advanced counter-hypersonic defenses, integrating space-based tracking with ground interceptors to detect and engage threats traveling at hypersonic velocities. Space systems saw contract wins bolstering warning capabilities, including a $1.8 billion extension in October 2024 for next-generation overhead persistent satellites, bringing total program value to $4.1 billion and enhancing early detection of ballistic and hypersonic launches. In October 2024, Northrop received an additional $1.8 billion for satellites under the Space Development Agency's tracking layer program. These efforts underscore Northrop's role in layered architectures, with over $2 billion invested by October 2025 in digital ecosystems to streamline satellite production and mission integration.

Business Segments

Aeronautics Systems

Northrop Grumman Aeronautics Systems designs, develops, produces, integrates, sustains, and modernizes , autonomous systems, and structures for , strike, and electronic warfare applications. The segment supports U.S. military branches with advanced platforms emphasizing stealth, high-altitude endurance, and multi-role capabilities, including bombers and unmanned aerial vehicles (UAVs). Key facilities include production sites in , where assembly occurs. The B-2 Spirit, a strategic stealth developed by Northrop Grumman, represents a cornerstone of the segment's portfolio, capable of delivering conventional and nuclear munitions with low-observable technology for penetrating advanced air defenses. Production spanned from 1988 to 2000, resulting in 21 at a total program cost of $44.75 billion, with each unit's flyaway cost exceeding $737 million when excluding development and support expenses. The platform has served as the U.S. Air Force's primary long-range strike asset for over three decades, undergoing continuous upgrades for mission effectiveness. Emerging as the successor to the B-2, the B-21 Raider is a next-generation stealth under development, with initial test flights commencing in 2023 and low-rate initial production aimed for delivery by the end of the decade. This program focuses on affordability, rapid production, and integration of advanced sensors and networking for multi-domain operations. In unmanned systems, the RQ-4 Global Hawk provides high-altitude, long-endurance intelligence, surveillance, and reconnaissance (ISR), operating at altitudes up to 60,000 feet with a range exceeding 14,000 miles and endurance over 30 hours. Northrop Grumman sustains and upgrades Global Hawk fleets for U.S. and allied forces, including adaptations like the RQ-4D RangeHawk for hypersonic testing. Additional naval-focused platforms include the MQ-4C Triton for maritime ISR and the E-2D Advanced Hawkeye for airborne early warning. The segment also contributes to structures for commercial and military applications, leveraging expertise in composite materials and advanced manufacturing to support partner programs like the F-35 Joint Strike Fighter. Ongoing efforts emphasize , , and sustainment contracts to ensure platform reliability amid evolving threats.

Mission Systems

Northrop Grumman Mission Systems develops and integrates advanced technologies for command, control, communications, computers, , surveillance, and reconnaissance (C4ISR) applications, emphasizing cyber-secure, software-defined systems for defense and missions. The sector provides multi-domain solutions including battle management, electronic warfare, sensing, connectivity, processing, maritime systems, and navigation technologies to support global security operations. Its is located in . Key programs include the Integrated Battle Command System (IBCS), a U.S. Army initiative that connects sensors and effectors across air defense platforms to enable rapid threat response and multi-mission adaptability. IBCS enhances awareness by integrating diverse and systems, allowing operators to engage threats more effectively than legacy architectures. The sector also contributes to through networks of sensors, satellites, and ground systems for threat detection, tracking, and interception. In 2024, Mission Systems generated $12.2 billion in , representing approximately 30% of Northrop Grumman's of $41.03 billion. growth continued into 2025, with the segment driving a 4% increase in third-quarter company-wide , fueled by higher volumes in cyber, , and targeting programs. Second-quarter 2025 for the segment rose 14% to $3.16 billion, supported by restricted awards and expanded mission planning capabilities incorporating and automation for , , and Marine Corps customers. The sector's cyber solutions focus on resilient, end-to-end hardware and software for , including secure communications and security architectures. It invests in and advanced sensing to enable next-generation and electronic warfare systems, ensuring across allied forces. These efforts align with U.S. Department of Defense priorities for open architectures that reduce integration costs and improve operational agility.

Space Systems

Northrop Grumman Space Systems designs, builds, and delivers space, defense, and aviation-related systems, providing end-to-end capabilities for national security, civil, and commercial customers. The segment encompasses spacecraft manufacturing, launch vehicles, satellite systems, and ground infrastructure, supporting missions from low-Earth orbit to deep space exploration. In civil space endeavors, Northrop Grumman serves as the prime contractor for 's (JWST), leading the industry team that developed the spacecraft bus, integrated the sunshield, and provided the aft optics subsystem. Launched on December 25, 2021, JWST has delivered unprecedented infrared observations of the early , exoplanets, and galaxy formation, with Northrop Grumman continuing support for operations and sustainment under a $31.2 million contract awarded in 2022. The company also builds science and environmental satellites for and , contributing to 's fleet for monitoring and . For commercial resupply to the International Space Station, Northrop Grumman operates the Antares rocket and Cygnus spacecraft under NASA's Commercial Resupply Services program. Antares, a two-stage vehicle with optional third-stage capability, has launched multiple Cygnus missions, including NG-19 on August 1, 2023, from Wallops Island, delivering over 8,000 pounds of cargo such as scientific experiments and crew supplies. NG-18 followed on November 7, 2022, marking continued reliability in uncrewed cargo delivery. Development of the Antares 330 variant, incorporating advanced engines, targets operational readiness by 2026 to enhance payload capacity to low-Earth orbit. In applications, the segment focuses on proliferated architectures for warning and tracking. Northrop Grumman holds a U.S. contract to deliver 16 sensor-equipped satellites for the Next-Generation Overhead Persistent (OPIR) program, with initial launches planned for 2028 to detect hypersonic and ballistic threats. An October 2024 $1.8 billion extension supports production scaling for resilient, low-Earth orbit constellations. Additional efforts include Hypersonic and Ballistic Tracking Sensor satellites and protected systems based on the GEOStar-3 platform, providing secure X-band and Ka-band links. Northrop Grumman advances satellite longevity through services like the (MEV), which has docked with client satellites to extend operational life, and the program for in-space refueling demonstrations. These capabilities also encompass future robotic debris removal and propulsion module integrations, enhancing in crowded orbital regimes. The segment's work integrates advanced sensing and communication technologies, prioritizing resilient architectures against adversarial threats.

Defense Systems

The Defense Systems segment of Northrop Grumman delivers integrated solutions across weapons systems, global battle management, operational readiness, and strategic deterrence to support objectives. This includes precision-guided munitions, advanced interceptors, command-and-control architectures, and nuclear modernization technologies designed to counter evolving threats such as hypersonic and ballistic missiles. In 2024, the segment recorded sales of $8.56 billion, comprising about 21% of the company's total revenue of $41.0 billion, with growth in subsequent quarters driven by heightened demand for and deterrence capabilities. Effective July 1, 2024, Northrop Grumman realigned its Strategic Deterrent Systems division—including the LGM-35A for ground-based strategic deterrence—from Space Systems to Defense Systems to streamline focus on land-based nuclear infrastructure and command enhancements. A core capability lies in , where the segment provides end-to-end s like the (GMD), the sole operational U.S. defense against intercontinental ballistic s launched from long-range distances. Complementing this is the Integrated (IBCS), a modular command-and-control platform that fuses data from disparate sensors and effectors to enable rapid threat detection and engagement across air and domains. In February 2025, the U.S. Army awarded Northrop Grumman $1.4 billion in contracts for IBCS advancements: a $481 million deal for software expansion integrating allied systems like Poland's sensors and the UK's CAMM , with $347.6 million allocated to Polish initiatives and $133.7 million to U.S. and defenses; plus an $899.6 million fixed-price contract to supply IBCS for Poland's Wisła medium-range and Narew short-range air defense programs, enhancing interoperability. In strategic deterrence, the replaces aging Minuteman III ICBMs through 2075, incorporating new missiles, digital command infrastructure, and over 450 upgrades, with Northrop Grumman completing the critical design review for the Launch Support System—a digital control network for testing and operations—in October 2025. The segment also sustains battle management via logistics and readiness services, including sustainment for systems out of , as evidenced by a $481 million hybrid awarded in January 2025 for fixed-price production and cost-reimbursable . These efforts underscore Defense Systems' role in addressing systemic gaps in threat response, prioritizing verifiable interceptor performance and networked integration over unproven alternatives.

Financial Performance

Northrop Grumman's total sales grew from $36.6 billion in 2022 to $39.3 billion in 2023 and $41.0 billion in 2024, reflecting annual increases of 7.3% and 4.4%, respectively, amid sustained U.S. Department of Defense demand for advanced systems. This expansion aligned with broader defense budget priorities, though offset in some areas by program transitions and supply chain constraints. In the third quarter of 2025, quarterly sales reached $10.4 billion, up 4% year-over-year, indicating continued momentum into the current fiscal year. Segment contributions varied, with Aeronautics Systems emerging as the largest revenue generator by 2024, driven by production ramps on programs. The following table summarizes sales by segment:
Segment2022 ($M)2023 ($M)2024 ($M)2022–2024 Growth
Aeronautics Systems10,53110,78612,030+14.2%
Mission Systems10,39610,89511,399+9.7%
Space Systems10,57011,87311,731+11.0%
Defense Systems7,6298,2898,560+12.2%
Data sourced from consolidated financial statements. Aeronautics Systems sales rose 12% in 2024 alone, primarily from B-21 Raider development and F-35 sustainment contracts, which accounted for a significant portion of the segment's output. Mission Systems grew steadily at 5% in 2024, supported by , cyber, and command systems deliveries, while Defense Systems advanced 3% through and fire control integrations. Space Systems experienced a 1% dip in 2024 following the completion of certain restricted programs and next-generation interceptor transitions, though earlier gains from and contributions had bolstered prior years. Overall, product sales dominated at approximately 80% of across periods, with services filling the remainder via logistics and maintenance.

Profitability and Operational Metrics

Northrop Grumman's profitability metrics reflect consistent margin expansion driven by cost efficiencies and favorable program mix in its defense-oriented segments. For the trailing twelve months ending September 30, 2025, the company's profit margin stood at 9.82%, while the operating margin reached 13.22%. In the third quarter of 2025, segment operating income increased 11% year-over-year to $1.28 billion, with the segment operating margin improving to 12.3%, up 80 basis points from the prior year, attributed to higher volume and productivity gains across segments. Adjusted earnings per share for the quarter were $7.67, surpassing analyst expectations, prompting an upward revision to the full-year 2025 earnings outlook. Operational metrics underscore the company's robust order pipeline and liquidity position. As of September 2025, funded and unfunded backlog totaled $91.4 billion, with approximately 40% anticipated to convert to revenue within the next 12 months, supported by net awards of $12.2 billion in the third quarter. Free cash flow guidance for full-year 2025 was reaffirmed at $3.05 billion to $3.35 billion, reflecting strong cash generation from operations of $860 million year-to-date through the third quarter, after adjustments for capital expenditures. Return on common equity has averaged 32.9% over the 2020-2024 period, indicating efficient capital deployment amid sustained defense spending.
Key MetricQ3 2025 ValueYear-over-Year Change
Segment 12.3%+80 basis points
Backlog$91.4 billion+7.6%
Guidance (FY 2025)$3.05B–$3.35BReaffirmed
These metrics highlight Northrop Grumman's operational resilience, with backlog visibility providing multi-year revenue stability despite quarterly revenue variability, such as the third-quarter 2025 miss relative to estimates due to timing shifts in program deliveries.

Market and Investor Metrics

Northrop Grumman Corporation's common stock trades on the New York Stock Exchange under the ticker symbol NOC. As of February 6, 2026, the stock closed at $709.11, with a market capitalization of approximately $101.1 billion. The company's trailing price-to-earnings (P/E) ratio stood at 22.33, reflecting earnings per share (EPS) of $27.81 on a trailing twelve-month basis, while the forward P/E was 20.70. The reached an all-time high closing price of $709.11 on February 6, 2026, amid broader market gains in defense sector equities driven by geopolitical tensions and increased U.S. defense spending. Year-to-date through October 2025, NOC shares delivered a total return of 31.14%, outperforming the S&P 500's approximate 20% gain in the same period, supported by steady contract wins and backlog growth. Over the past five years (2020-2025), the stock generated a total return of 111.18%, annual growth through dividends and price appreciation amid rising demand for advanced defense technologies. Northrop Grumman maintains a yielding 1.53% forward, with an annual payout of $9.24 per share as of October 2025, September 2, 2025. In the second quarter of 2025 alone, the company returned over $700 million to shareholders via s and share repurchases, bolstering total shareholder yield amid a record backlog exceeding $80 billion. Institutional investors hold approximately 85% of outstanding shares, with major holders including (9.33%) and State Street Global Advisors (9.38%), indicating strong confidence from large asset managers in the firm's long-term defense market positioning.
MetricValue (as of Feb 2026)
$101.1B
Trailing P/E Ratio22.33
Forward P/E Ratio20.70
(Fwd)1.53%
Institutional Ownership85%
5-Year Total Return111.18%

Leadership and Governance

Executive Leadership

Kathy J. Warden has served as chair, chief executive officer, and president of Northrop Grumman Corporation since January 1, 2019. She joined the company in 2008, following executive roles at , Veridian Corporation, and , and previously held the position of president and chief operating officer, overseeing the company's four business sectors. Warden was elected chairman of the in 2020. Kenneth B. Crews serves as corporate and , responsible for financial planning, reporting, and strategy. The company's four business segments are led by the following presidents, each reporting to the CEO:
  • Thomas H. Jones, corporate and president, Aeronautics Systems, overseeing military aircraft programs including the B-21 Raider.
  • Roshan Roeder, corporate and president, Mission Systems, appointed effective July 1, 2024, managing command, control, and cybersecurity solutions.
  • Dr. Robert Fleming, corporate and president, Space Systems, directing and development.
  • Ben R. Davies, corporate and president, Defense Systems, leading and tactical systems production.

Board of Directors

The of Northrop Grumman Corporation oversees the company's strategic direction, , and , with a composition emphasizing expertise in , defense, , , and . As of the 2025 annual shareholders' meeting on May 21, 2025, the board comprises 12 nominees, including the Chair and one non- in addition to the CEO; the remaining directors are independent, bringing diverse backgrounds from military leadership, corporate executive roles, and technical . Madeleine A. Kleiner serves as Lead , focusing on and risk oversight.
NameYear First ElectedPrincipal OccupationKey Qualifications and Background
Kathy J. Warden2018Chair, CEO, and President, Northrop Grumman CorporationOperational leadership in aerospace and defense; prior roles in strategy and business development at Northrop Grumman.
David P. Abney2020Former Executive Chairman and CEO, United Parcel Service, Inc.Multinational enterprise leadership; expertise in global logistics and international operations.
Marianne C. Brown2015Former COO, Global Financial Solutions, Fidelity National Information Services, Inc.IT services, cybersecurity, and business management experience.
Ann M. Fudge2016Former Chairman and CEO, Young & Rubicam BrandsBusiness leadership in consumer products and international markets.
Madeleine A. Kleiner2008Former EVP and General Counsel, Hilton Hotels CorporationCorporate governance, risk management, and mergers/acquisitions expertise.
Arvind Krishna2022Chairman and CEO, International Business Machines CorporationGlobal technology leadership; knowledge in AI, computing, and innovation.
Kimberly A. Ross2023Former CFO, WeWork and Baker Hughes CompanyFinancial reporting, auditing, and international business operations.
Gary Roughead2012Retired Admiral, U.S. Navy; Former Chief of Naval OperationsSenior military leadership; national security and cyber operations expertise.
Thomas M. Schoewe2011Former EVP and CFO, Wal-Mart Stores, Inc.Financial management, risk oversight, and global operations.
James S. Turley2015Former Chairman and CEO, Ernst & YoungAccounting, finance, and risk management proficiency.
Mark A. Welsh III2016President, Texas A&M University; Retired General, U.S. Air ForceMilitary command experience; global security and higher education administration.
Mary A. Winston2023President and Founder, WinsCo Enterprises, Inc.Corporate governance, financial analysis, and operational leadership.
The board operates through committees including , Compensation and , and Nominating and , ensuring specialized oversight of financial integrity, , and director selection processes. Directors are elected annually by shareholders, with terms aligned to the company's fiscal governance structure.

Compliance and Ethical Frameworks

Northrop Grumman maintains a comprehensive and compliance program centered on its Standards of Conduct, which outlines expectations for , legal compliance, and ethical decision-making across all operations. The program emphasizes principles beyond mere legal adherence, aiming to foster a culture of accountability and respect for stakeholders, with core values guiding employee interactions and practices. Oversight is provided by a dedicated Chief Ethics and Compliance Officer, currently Jay Cox, who leads efforts to integrate ethical standards into daily operations, supported by sector-level Business Conduct Officers and Committees. The framework includes mandatory training programs, risk assessments, and monitoring mechanisms to address potential violations, applying uniformly to employees, officers, directors, and suppliers. A key component is the anti-corruption compliance initiative, which enforces strict adherence to laws such as the through policies prohibiting bribery, clear protocols for third parties, and robust auditing processes. Reporting channels, including the anonymous OpenLine hotline, enable confidential escalation of concerns related to , accounting irregularities, or issues, with investigations handled independently to ensure impartiality. The program extends to suppliers via contractual requirements for equivalent standards, including conflict minerals disclosures and cybersecurity compliance aligned with defense regulations like DFARS. Annual reviews and updates to the Standards document adaptations to evolving regulatory landscapes, such as data privacy frameworks for international operations.

Facilities and Operations

Headquarters and Administrative Centers

Northrop Grumman's corporate headquarters is situated at 2980 Fairview Park Drive, 22042, serving as the central hub for executive leadership, strategic decision-making, and overall corporate administration. This location in positions the company proximate to U.S. government agencies and defense clients in the Washington, D.C. metropolitan area. The company's four primary business sectors—Aeronautics Systems, Defense Systems, Mission Systems, and Systems—each operate dedicated headquarters that function as key administrative centers for division-specific management, program oversight, and operational coordination. Systems is headquartered at 3520 E. Avenue M, 93550, focusing on design, production, and sustainment activities. Defense Systems maintains its headquarters in , handling ground-based systems, munitions, and mission readiness programs. Mission Systems is based in , in the area, where it administers cyber, , and electronic warfare initiatives across more than 20,000 employees. Space Systems, responsible for systems, launch vehicles, and technologies, is headquartered in , supporting approximately 31,000 employees and facilities in 48 states. These sector-specific centers enable decentralized administration while aligning with the corporate headquarters' overarching governance.

Manufacturing and R&D Facilities

Northrop Grumman maintains over 70 manufacturing sites across all 50 U.S. states, totaling more than 30 million square feet of production space dedicated to advanced defense and aerospace systems. The company has allocated $13.5 billion toward infrastructure improvements and research and development in the United States over the past five years, enabling rapid transitions from design to production for mission-critical components such as aircraft fuselages and propulsion systems. These facilities emphasize digital manufacturing techniques, including automation and robotics, to achieve high-volume output, as exemplified by the production of one F-35 center fuselage every 30 hours at the Integrated Assembly Line in Palmdale, California. In Palmdale, located at U.S. Air Force Plant 42, Northrop Grumman conducts final assembly and modifications for stealth aircraft, including the B-21 Raider bomber, with recent milestones such as the rollout of production models for testing as of September 2025. Propulsion manufacturing occurs at a 550-acre campus in Elkton, Maryland, focused on rocket motors and controls. A new 113,000-square-foot missile integration facility opened in Rocket Center, West Virginia, in September 2025 to accelerate production of tactical rocket motors and ammunition. Additionally, the 175,500-square-foot Air and Missile Defense Integration Center in Madison, Alabama, supports integrated systems assembly, expanding capacity as of May 2025. Microelectronics production, integral to sensors and electronics, spans facilities like the Space Park Foundry in , for microwave and millimeter-wave technologies; , , for semiconductors and packaging; and , for wafer processing. These sites produce millions of chips annually using over 800 materials, with two government-accredited semiconductor fabs opened for broader access in September 2025. Research and development efforts are embedded within these manufacturing hubs and specialized labs, leveraging expertise in physics, , , and for prototyping and testing. The Advanced Technology Lab in , provides over 50 years of foundry services split between R&D and production, including innovations like the Super-Lattice Castellated for RF applications. Redondo Beach's Space Park supports and advanced R&D for and technologies. Woodland Hills, California, focuses on gyroscopes, while Research Labs offer custom tools such as and rapid prototyping to validate designs under extreme conditions.

Innovations and Defense Contributions

Technological Breakthroughs

Northrop Grumman pioneered through the B-2 Spirit bomber, which achieved its first flight on July 17, 1989, introducing low-observable features that minimized radar detection via specialized composite materials, coatings, and the configuration derived from earlier Northrop designs. This breakthrough enabled all-altitude penetration of advanced air defenses, carrying both conventional and nuclear payloads over intercontinental ranges, marking a leap in capabilities. In unmanned aerial systems, Northrop Grumman developed the RQ-4 Global Hawk, originating as an Advanced Concept Technology Demonstration in 1995, becoming the U.S. Air Force's first operational high-altitude, long-endurance UAV for intelligence, surveillance, and reconnaissance. Capable of 60,000-foot altitudes and 30+ hour missions, it provides persistent ISR with advanced sensors, influencing subsequent drone technologies despite initial development by before Northrop's acquisition. Northrop Grumman led the (JWST) program as prime contractor, designing and building the spacecraft bus, deployable sunshield, and integrating the observatory, which launched on December 25, 2021, to enable observations of distant cosmic phenomena. This effort, recognized with the 2023 for aeronautical achievement, advanced cryogenic cooling and precision deployment technologies, facilitating breakthroughs in studies and early universe imaging. Additional innovations include advancements in autonomous systems and AI integration, such as adopting tools in 2025 to accelerate AI applications in design and operations, enhancing defense capabilities amid evolving threats. In manufacturing, the company employs electron beam powder bed fusion for , producing over 5,000 parts to reduce production times and costs.

R&D Investments and Patents

Northrop Grumman allocates substantial resources to (R&D), with company-funded expenditures reaching $3.0 billion in 2023, focused on advancing defense technologies such as autonomous systems, hypersonics, and architectures. In 2024, the company invested $2.8 billion collectively in R&D and capital projects, supporting the design, , and sustainment of next-generation platforms amid escalating geopolitical demands. Over the preceding five years through 2024, cumulative investments in U.S.-based and R&D exceeded $13.5 billion, including expansions in advanced facilities to enhance production scalability for strategic programs. These efforts prioritize self-funded to complement government contracts, enabling proprietary advancements in areas like integration for navigation in GPS-denied environments and kinetic for . The company's patent portfolio underscores its technological leadership, encompassing over 11,000 global filings, of which approximately 6,500 have been granted, with more than 58% remaining active as of recent assessments. Northrop Grumman maintains a proactive strategy, routinely pursuing U.S. and foreign patents tied to core competencies in , , and mission systems. Notable examples include patents for pod-deployed servicing systems, enabling on-orbit maintenance and extension of lifespans, granted in 2025. Other innovations protected by patents involve coherent imaging for enhanced sensing and engines for autonomous operations in contested domains. This portfolio, spanning 286 families with 314 grants and 280 applications, primarily targets U.S., European, and other international jurisdictions to safeguard competitive edges in defense applications.
YearCompany-Funded R&D Expenditure (USD Billion)Key Focus Areas
20233.0AI, hypersonics, space systems
20242.8 (R&D + capital)Next-gen manufacturing, autonomous tech
These investments and patent activities position Northrop Grumman to address evolving threats, though outcomes depend on integration with DoD-funded efforts and market dynamics rather than isolated corporate spending.

Impact on National Security

Northrop Grumman enhances U.S. national security by developing and sustaining advanced systems for strategic deterrence, intelligence, surveillance, reconnaissance (ISR), missile defense, and space-based warning. These capabilities enable the U.S. military to counter sophisticated threats, maintain global stability, and support warfighters against pacing adversaries. The B-2 Spirit stealth bomber, operational since 1997, exemplifies Northrop Grumman's contributions to strategic deterrence. Featuring low-observable technology, it penetrates advanced air defenses for long-range strikes with conventional or nuclear munitions, ensuring credible second-strike capability. Its first flight occurred on July 17, 1989, marking a leap in stealth innovation that remains vital for U.S. defense . In ISR, the RQ-4 Global Hawk unmanned system delivers persistent, high-altitude, long-endurance coverage, collecting intelligence across vast areas to inform military operations and contingency responses. Operating at altitudes up to 60,000 feet, it supports worldwide missions, including in the Pacific theater, by providing on threats. Northrop Grumman's efforts bolster homeland protection through systems like the (GMD), which intercepts ballistic missiles in , and advanced components for propulsion, fuzing, and warheads. These technologies address evolving threats from adversaries, integrating modeling and simulation for layered defense. In , Northrop Grumman sustains the (DSP) satellites, operational for over 50 years since the , providing early missile warning and detection critical for national command authorities. The company also develops resilient and architectures across orbits to ensure secure communications, surveillance, and power projection in contested domains. Ongoing programs like the B-21 Raider bomber and Sentinel intercontinental ballistic missile modernization further extend these impacts, scaling production to meet future demands amid rising geopolitical tensions.

Historical Fraud and Compliance Issues

In the late 1980s and early 1990s, , prior to its merger with , faced significant allegations of in defense contracting, culminating in a guilty on February 27, 1990, to 34 criminal counts related to overcharging the U.S. government on programs including the AV-8B Harrier jet and other military contracts. The company agreed to pay a then-record $17 million fine, with the case involving falsified test data and cost submissions that misled officials. This highlighted early compliance lapses in and testing protocols under government oversight. Following the 1994 formation of Northrop Grumman through the merger of Northrop and Grumman, the company inherited and addressed legacy fraud claims from acquired entities, including a 2003 settlement of $111.2 million for False Claims Act (FCA) violations at TRW Inc., acquired in 2002, involving inflated pricing on classified satellite programs from the 1990s. That same year, Northrop Grumman paid $80 million to resolve two FCA cases, one alleging false statements and defective parts in eight Navy drone contracts from the late 1980s to early 1990s. These settlements, often initiated by whistleblowers under the qui tam provisions of the FCA, reflected ongoing challenges in verifying subcontractor compliance and accurate billing amid complex acquisition integrations. A protracted case tied to the B-2 Spirit bomber involved allegations of fraudulent accounting and cost overcharges on the SP-3/ZSR-62 radar jamming device awarded in 1985, where Northrop submitted false proposals and concealed overruns, leading to a $62 million settlement in 2005 after a 16-year lawsuit filed in 1989. The government claimed violations of standards, including improper deferral of compensation expenses, breaching a prior 2002 agreement with the . In 2013, Northrop Grumman paid an additional $11.4 million to resolve related FCA claims for continued improper cost allocations post-2002. Into the 2010s, compliance issues persisted with billing inaccuracies, such as a 2010 settlement of $12.5 million for failing to perform required qualification tests on parts supplied to the from 1998 to 2007, resulting in defective pricing claims. In 2018, Northrop Grumman Systems Corporation settled FCA allegations for $27.45 million over overstated employee hours on two programs from 2010 to 2013, and separately agreed to $31.65 million for overbilling on the project. A 2019 resolution added $5.2 million for false labor charges on classified contracts. Across these cases, totaling over $690 million in FCA-related penalties from 13 incidents, the Department of Justice emphasized systemic risks in timekeeping and cost verification within large-scale defense subcontracting, though settlements typically avoided admissions of liability to expedite resolution.

Contract Disputes and Performance Criticisms

Northrop Grumman has faced significant scrutiny over cost overruns and schedule delays in its major defense contracts, particularly fixed-price development programs where the company bears substantial for unforeseen technical challenges and requirements changes. The U.S. Department of Defense has attributed partial responsibility to the contractor in some instances, citing inadequate early and estimation errors, though Northrop executives have countered that external factors like evolving specifications and issues contribute substantially. The most prominent example is the Ground Based Strategic Deterrent (GBSD), now known as the Sentinel program, awarded to Northrop as prime contractor in under a $13.3 billion engineering and manufacturing development contract. By January 2024, the program exceeded its baseline by 37 percent, triggering a "significant" breach of the Nunn-McCurdy statutory cost growth threshold, which mandates congressional notification and potential termination review. The total acquisition cost escalated from an initial $96 billion estimate to $140.9 billion, reflecting an 81 percent increase, with delays pushing initial operational capability from 2029 to at least 2032. Critics, including advocates, have argued that sole-source contracting to Northrop without competitive prototyping exacerbated the overruns, recommending cancellation in favor of life extensions for existing Minuteman III missiles. Despite these issues, certified the program's continuation in July 2024, citing its necessity for nuclear deterrence, while restructuring to impose stricter milestones and cost controls on Northrop. Other performance criticisms have arisen in non-nuclear contracts. In a 2018 settlement with state officials, Northrop received $35.8 million to terminate a 13-year IT outsourcing agreement plagued by service delivery shortfalls and integration failures, as the state shifted to a multi-vendor model. Similarly, a long-running dispute with the U.S. over an $874 million firm-fixed-price technology modernization contract culminated in a October 2022 federal court ruling awarding Northrop $67 million for government-caused delays and changes, rejecting USPS's reconsideration bid. Legal disputes have also highlighted billing irregularities. In 2013, Northrop paid $11.4 million to resolve allegations of improperly charging costs to federal contracts, violating Standards. A 2018 False Claims Act settlement required $27.45 million for claims that Northrop supplied military target drones failing to meet vibration and durability specifications, leading to defective deliveries. These cases underscore recurring tensions in performance validation and cost allocation, though Northrop has maintained compliance through internal audits and no admission of liability in settlements.

Regulatory Violations and Settlements

In 2006, the U.S. Department of Justice imposed a $33 million fine on Northrop Grumman for including unallowable costs in government contracts, related to and expenses charged to federal programs. In 2008, the company agreed to a $15 million to settle violations stemming from its acquisition of , where controlled technical data was improperly transferred without required licenses, involving 41 violations of the . Northrop Grumman faced multiple False Claims Act settlements with the DOJ for procurement irregularities. In 2009, it paid $325 million to resolve allegations that its predecessor TRW Inc. defrauded the government on missile testing contracts by submitting false data and concealing defects. In 2010, Northrop Grumman Systems Corporation settled for $12.5 million over false claims submitted for labor and material costs on Navy contracts. A 2013 settlement required $11.4 million for improperly billing unallowable costs, including entertainment and alcohol expenses, to federal contracts under the Federal Acquisition Regulation. Further DOJ actions included a 2018 settlement where Northrop Grumman Systems Corporation paid $31.65 million, comprising $27.45 million under the False Claims Act for overstating employee hours on contracts and $4.2 million in criminal penalties for related wire . In the same year, the company paid $62 million to settle claims of accounting overcharges and false statements regarding a radar jamming device for the B-2 Stealth Bomber. A 2019 agreement added $5.2 million for falsely billing labor charges on government contracts. Environmental and safety regulators also imposed penalties. In 2007, Northrop Grumman settled Proposition 65 violations in for handling at a site, agreeing to civil penalties and injunctive relief for ongoing contamination risks. The cited the company multiple times, including $30,000 in penalties in 2014 for workplace violations and a 2015 inspection resulting in six serious citations after an incident. In 2023, regulators reduced charges in a worker case at a Northrop facility, settling for $81,918 in penalties. These cases reflect recurring compliance challenges in federal contracting, compliance, and operational .

Political and Economic Influence

Government Contracting Dynamics

Northrop Grumman Corporation derives the majority of its revenue from contracts with the U.S. government, which accounted for 87 percent of total sales in 2024, up from 86 percent in 2023. This heavy reliance stems from the company's specialization in advanced defense systems, such as stealth bombers, architectures, and unmanned aerial vehicles, which align closely with Department of Defense (DoD) priorities for . Total sales reached $41.03 billion in 2024, with defense-related obligations positioning the firm as the fifth-largest federal contractor, capturing over 2 percent of U.S. spending. The contracting process adheres to the , encompassing competitive bidding for initial awards, modifications via cost-plus-award-fee or fixed-price structures, and frameworks for ongoing sustainment. For instance, in February 2025, Northrop secured $1.4 billion across two contracts to modernize U.S. air and systems, involving integration of proprietary sensors and command systems. Sole-source awards are common for programs leveraging unique , such as the B-21 Raider bomber, due to the high barriers of entry including classified specifications, extensive , and substantial upfront R&D investments that deter new entrants. These dynamics foster stability through long-term program funding but expose the company to risks like budgetary constraints or delays. Competition within the sector remains limited, with Northrop operating alongside a small cadre of prime contractors—, , , and RTX—that dominate DoD obligations, often collaborating on joint ventures while vying for subsystem roles. This oligopolistic structure, driven by in complex manufacturing and the DoD's preference for proven incumbents, can result in reduced price pressures but ensures retention of specialized capabilities critical for deterrence and warfighting superiority. International government sales, comprising about 12 percent of revenue, provide diversification yet remain subordinate to U.S. DoD dependencies, subjecting Northrop to approvals and geopolitical fluctuations. Overall, these factors compel rigorous compliance with standards and performance metrics to sustain renewals amid scrutiny over efficiencies.

Lobbying and Bipartisan Engagement

Northrop Grumman engages in extensive federal , primarily to influence defense-related and appropriations. In 2022, the company spent $10.8 million on federal lobbying efforts, focusing on defense appropriations, reform, and . Lobbying expenditures have remained substantial in subsequent years, totaling $10.2 million in 2023 and $8.44 million in 2024, with $5.16 million reported through mid-2025. Key issues include annual defense authorization and appropriation bills, such as the for Fiscal Year 2026 (S. 2296, H.R. 3838), the Department of Defense Appropriations Act for 2024 (H.R. 4365), and the Intelligence Authorization Act for Fiscal Year 2025 (H.R. 8512). The company has also advocated for policy adjustments like research and experimentation tax expensing provisions and economic price adjustments for fixed-price contracts amid inflation pressures on programs such as the B-21 Raider. Northrop Grumman's is conducted through in-house staff and external firms, employing 20 to 35 lobbyists annually in recent years. The company files quarterly lobbying disclosure reports with , detailing engagements with agencies including the Department of Defense and congressional committees overseeing funding. These activities aim to secure funding for core programs in , systems, and mission services, reflecting the firm's heavy reliance on contracts, which constituted over 90% of its revenue in recent fiscal years. Bipartisan engagement is evident in Northrop Grumman's (PAC), known as ENGPAC, which solicits voluntary contributions from employees and distributes funds to federal candidates and party committees without corporate treasury involvement. In the 2023-2024 election cycle, ENGPAC contributed $1.236 million to federal candidates, split nearly evenly at 50% to Democrats and 49.19% to Republicans. Similar patterns held in prior cycles, with 53.17% to Democrats and 46.83% to Republicans in 2022. Top recipients have included members from both parties active in defense , such as Armed Services Committee leaders, underscoring a strategy of supporting incumbents across the aisle to maintain influence over bipartisan defense priorities like budget authorizations. This approach aligns with industry norms for defense contractors, prioritizing continuity over partisan alignment.

Economic Contributions and Workforce Impact

Northrop Grumman generated $41.03 billion in sales for 2024, a 4% increase from $39.3 billion in 2023, with the majority derived from U.S. Department of Defense contracts focused on , , and defense systems. This stream channels federal defense spending into domestic , , and supply chains, supporting ancillary industries such as materials, , and that amplify economic activity beyond direct sales. As of December 31, 2024, the company employed 97,000 workers, a 4% decrease from 101,000 in 2023, across more than 550 facilities spanning all 50 U.S. states and over 25 countries. These positions predominantly involve , , and technical roles in high-skill sectors, with a workforce composition of approximately 29% and 57% employees based on self-reported demographics. Northrop Grumman's operations contribute to regional by sustaining jobs in defense-dependent communities, such as those near major sites in , and , where it invests in employee training and STEM initiatives to align skills with defense needs. The company's presence generates indirect through supplier networks and local , though specific multipliers vary; defense sector analyses indicate that each direct and defense job supports 1.5 to 2 additional jobs in related fields. In states like , Northrop Grumman alone accounts for $3.5 billion in annual activity, bolstering the broader military-industrial ecosystem without relying on unsubstantiated broader GDP attributions.

References

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