Northrop Grumman Corporation (NOC) Bundle
A Brief History of Northrop Grumman Corporation
Company Overview
Northrop Grumman Corporation, a leading global aerospace and defense technology company, operates in various sectors including Aeronautics Systems, Defense Systems, Mission Systems, and Space Systems. As of 2024, the company continues to play a pivotal role in providing innovative solutions and advanced technologies to government and commercial customers worldwide.
Financial Performance
For the third quarter of 2024, Northrop Grumman reported total sales of $9.996 billion, representing a 2% increase compared to $9.775 billion in the same quarter of 2023. The year-to-date sales for 2024 reached $30.347 billion, a 6% increase from $28.652 billion in 2023.
| Financial Metrics | Q3 2024 | Q3 2023 | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|---|---|
| Total Sales | $9.996 billion | $9.775 billion | $30.347 billion | $28.652 billion |
| Operating Income | $1.120 billion | $1.016 billion | $3.281 billion | $2.930 billion |
| Net Earnings | $1.026 billion | $937 million | $2.910 billion | $2.591 billion |
| Diluted Earnings Per Share | $7.00 | $6.18 | $19.69 | $17.00 |
Segment Performance
Northrop Grumman's operations are segmented into four key areas:
- Aeronautics Systems: Generated $2.878 billion in Q3 2024, an increase of 4% year-over-year.
- Defense Systems: Sales amounted to $2.084 billion, a slight increase of 2% from the previous year.
- Mission Systems: Reported sales of $2.823 billion, marking a 7% increase.
- Space Systems: Experienced a decline with sales of $2.870 billion, a 3% decrease compared to Q3 2023.
| Segment | Q3 2024 Sales | Q3 2023 Sales | Year-to-Date 2024 Sales | Year-to-Date 2023 Sales |
|---|---|---|---|---|
| Aeronautics Systems | $2.878 billion | $2.766 billion | $8.810 billion | $7.876 billion |
| Defense Systems | $2.084 billion | $2.050 billion | $6.227 billion | $6.058 billion |
| Mission Systems | $2.823 billion | $2.628 billion | $8.255 billion | $7.832 billion |
| Space Systems | $2.870 billion | $2.953 billion | $9.021 billion | $8.775 billion |
Cash Flow and Liquidity
As of September 30, 2024, Northrop Grumman reported cash and cash equivalents of $3.3 billion. The net cash provided by operating activities for the nine months ended September 30, 2024, was $1.810 billion, up 25% from $1.445 billion in 2023. Free cash flow for the same period was $859 million, an increase of 82% year-over-year.
| Cash Flow Metrics | 2024 | 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $1.810 billion | $1.445 billion |
| Free Cash Flow | $859 million | $473 million |
| Capital Expenditures | $951 million | $972 million |
Market Position and Future Outlook
Northrop Grumman's total backlog as of September 30, 2024, stood at $84.800 billion, with significant new awards totaling $33.3 billion year-to-date. The company remains well-positioned to capitalize on increasing defense budgets and strategic contracts in both domestic and international markets.
| Backlog Overview | Funded Backlog | Unfunded Backlog | Total Backlog |
|---|---|---|---|
| As of September 30, 2024 | $39.668 billion | $45.132 billion | $84.800 billion |
A Who Owns Northrop Grumman Corporation (NOC)
Major Shareholders
As of 2024, Northrop Grumman Corporation (NOC) has a diverse ownership structure comprising institutional investors, individual shareholders, and corporate insiders. The following table highlights the major shareholders and their respective ownership percentages.
| Shareholder Type | Shareholder Name | Ownership Percentage |
|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 8.2% |
| Institutional Investor | BlackRock, Inc. | 7.5% |
| Institutional Investor | State Street Corporation | 4.2% |
| Institutional Investor | Capital Research Global Investors | 3.9% |
| Individual Investor | Wesley G. Bush (Former CEO) | 0.4% |
| Individual Investor | Other Insiders | 1.1% |
| Total Shares Outstanding | 145,813,599 |
Stock Performance
As of the end of September 2024, Northrop Grumman's stock performance reflects its financial health and market conditions. The stock price was observed at $461.06 per share, with a year-to-date increase of approximately 10%. The company has a market capitalization of around $67.23 billion.
Corporate Governance
The governance structure of Northrop Grumman includes a Board of Directors that oversees the management and strategic direction of the company. The board comprises members with extensive experience in defense, aerospace, and technology sectors.
Recent Developments
In 2024, Northrop Grumman continued to engage in significant defense contracts, with a backlog totaling approximately $84.8 billion as of September 30, 2024. This includes notable contracts from the U.S. government and international clients.
Financial Overview
For the third quarter of 2024, Northrop Grumman reported sales of $9.996 billion, a 2% increase from the previous year. The operating income for the same period was $1.120 billion, representing a 10% increase year-over-year. The effective income tax rate was recorded at 13.6% compared to 16.2% in the prior year.
Dividend Information
In May 2024, Northrop Grumman increased its quarterly dividend by 10% to $2.06 per share, reflecting a commitment to returning value to its shareholders.
Conclusion
Northrop Grumman's ownership and financial performance as of 2024 demonstrate its robust position in the defense industry, supported by significant institutional investment and a strong governance framework.
Northrop Grumman Corporation (NOC) Mission Statement
As of 2024, Northrop Grumman Corporation's mission statement emphasizes the company's commitment to delivering innovative solutions to complex challenges. The company focuses on advanced technologies in aerospace and defense, aiming to ensure security and enhance the capabilities of its customers.
Mission Overview
The mission statement reflects Northrop Grumman's dedication to:
- Providing superior technology solutions.
- Enhancing national security and global stability.
- Creating value for shareholders and stakeholders.
- Promoting a culture of integrity and responsibility.
Financial Performance Highlights
For the year 2024, Northrop Grumman reported significant financial metrics that underscore its operational success:
| Metric | Q3 2024 | Q3 2023 | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|---|---|
| Total Sales | $9.996 billion | $9.775 billion | $30.347 billion | $28.652 billion |
| Operating Income | $1.120 billion | $1.016 billion | $3.281 billion | $2.930 billion |
| Net Earnings | $1.026 billion | $937 million | $2.910 billion | $2.591 billion |
| Diluted Earnings Per Share | $7.00 | $6.18 | $19.69 | $17.00 |
Backlog and Awards
As of September 30, 2024, Northrop Grumman maintained a robust backlog, reflecting strong demand for its products:
| Segment | Funded Backlog (in millions) | Unfunded Backlog (in millions) | Total Backlog (in millions) | % Change from 2023 |
|---|---|---|---|---|
| Aeronautics Systems | $10,018 | $8,541 | $18,559 | (5)% |
| Defense Systems | $10,171 | $17,398 | $27,569 | 36% |
| Mission Systems | $11,625 | $5,256 | $16,881 | 5% |
| Space Systems | $7,854 | $13,937 | $21,791 | (23)% |
| Total Backlog | $39,668 | $45,132 | $84,800 | 1% |
Market Position and Strategic Focus
Northrop Grumman's strategic focus includes:
- Investing in research and development to drive innovation.
- Expanding partnerships with government and commercial clients.
- Enhancing operational efficiency to maximize shareholder value.
- Prioritizing sustainability and corporate responsibility.
Key Programs
Notable programs under Northrop Grumman’s portfolio include:
- Sentinel program - awarded a $13.3 billion contract.
- B-21 Raider - advanced stealth bomber development.
- HALO program for NASA's Gateway project.
Overall, Northrop Grumman's mission statement and operational strategies are closely aligned with its financial performance, demonstrating a strong commitment to innovation, security, and stakeholder value.
How Northrop Grumman Corporation (NOC) Works
Company Overview
Northrop Grumman Corporation operates in four primary segments: Aeronautics Systems, Defense Systems, Mission Systems, and Space Systems. As of September 30, 2024, the company reported total assets of $48.289 billion and total liabilities of $33.541 billion.
Financial Performance
For the third quarter of 2024, Northrop Grumman reported the following financial highlights:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Sales | $9.996 billion | $9.775 billion | 2% |
| Operating Income | $1.120 billion | $1.016 billion | 10% |
| Net Earnings | $1.026 billion | $937 million | 9% |
| Diluted Earnings per Share | $7.00 | $6.18 | 13% |
Segment Analysis
Northrop Grumman's operations are divided into the following segments:
Aeronautics Systems
For the third quarter of 2024, Aeronautics Systems reported:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Sales | $2.878 billion | $2.766 billion | 4% |
| Operating Income | $298 million | $283 million | 5% |
| Operating Margin Rate | 10.4% | 10.2% | 2% |
Defense Systems
For the third quarter of 2024, Defense Systems reported:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Sales | $2.084 billion | $2.050 billion | 2% |
| Operating Income | $196 million | $201 million | (2%) |
| Operating Margin Rate | 9.4% | 9.8% | (4%) |
Mission Systems
For the third quarter of 2024, Mission Systems reported:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Sales | $2.823 billion | $2.628 billion | 7% |
| Operating Income | $390 million | $386 million | 1% |
| Operating Margin Rate | 13.8% | 14.7% | (6%) |
Space Systems
For the third quarter of 2024, Space Systems reported:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Sales | $2.870 billion | $2.953 billion | (3%) |
| Operating Income | $345 million | $302 million | 14% |
| Operating Margin Rate | 12.0% | 10.2% | 18% |
Backlog and Contracts
As of September 30, 2024, Northrop Grumman reported a backlog of $84.8 billion, with approximately 40% expected to be recognized as revenue in the next 12 months. Key contract awards in the third quarter totaled $11.7 billion, including:
- $2.7 billion for restricted programs
- $1.6 billion for E-2 aircraft
- $0.7 billion for military ammunition programs
Cash Flow and Liquidity
For the nine months ended September 30, 2024, Northrop Grumman reported:
| Metric | 2024 | 2023 | Change (%) |
|---|---|---|---|
| Net Cash Provided by Operating Activities | $1.810 billion | $1.445 billion | 25% |
| Free Cash Flow | $859 million | $473 million | 82% |
| Capital Expenditures | $951 million | $972 million | (2%) |
Debt and Equity
As of September 30, 2024, Northrop Grumman had long-term debt of $14.689 billion. The company also issued $2.5 billion of unsecured senior notes in January 2024 for general corporate purposes.
The quarterly common stock dividend was increased to $2.06 per share in May 2024, up from $1.87 per share.
Taxation
For the third quarter of 2024, Northrop Grumman reported a federal and foreign income tax expense of $162 million, with an effective tax rate of 13.6%. Year-to-date, the effective tax rate was 16.0% compared to 16.5% in the prior year period.
How Northrop Grumman Corporation (NOC) Makes Money
Business Segments
Northrop Grumman operates through four primary segments:
- Aeronautics Systems
- Defense Systems
- Mission Systems
- Space Systems
Revenue Sources
As of 2024, Northrop Grumman's revenue is primarily generated from contracts with the U.S. government and allied nations, focusing on defense and aerospace systems.
| Segment | Sales (Q3 2024, $ in millions) | Operating Income (Q3 2024, $ in millions) | Operating Margin (%) |
|---|---|---|---|
| Aeronautics Systems | 2,878 | 298 | 10.4 |
| Defense Systems | 2,084 | 196 | 9.4 |
| Mission Systems | 2,823 | 390 | 13.8 |
| Space Systems | 2,870 | 345 | 12.0 |
Financial Performance
For the third quarter of 2024, Northrop Grumman reported total sales of $9.996 billion, an increase from $9.775 billion in Q3 2023.
Operating income for the third quarter of 2024 was $1.120 billion, compared to $1.016 billion in the same quarter of the previous year, reflecting a 10% increase in operating income.
| Metric | Q3 2024 | Q3 2023 | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|---|---|
| Total Sales ($ in millions) | 9,996 | 9,775 | 30,347 | 28,652 |
| Operating Income ($ in millions) | 1,120 | 1,016 | 3,281 | 2,930 |
| Net Earnings ($ in millions) | 1,026 | 937 | 2,910 | 2,591 |
| Diluted Earnings per Share ($) | 7.00 | 6.18 | 19.69 | 17.00 |
Contracts and Backlog
As of September 30, 2024, Northrop Grumman's total backlog was $84.8 billion, with approximately 40% expected to be recognized as revenue over the next 12 months. The backlog includes both funded and unfunded contracts.
Key Contracts and Programs
Northrop Grumman is involved in various significant programs, including:
- F-35 Joint Strike Fighter
- Ground/Air Task Oriented Radar (G/ATOR)
- Space Development Agency satellite programs
- HALO for NASA's Gateway program
Cash Flow and Capital Allocation
For the nine months ending September 30, 2024, Northrop Grumman generated net cash provided by operating activities of $1.810 billion, a 25% increase compared to the same period in 2023.
Free cash flow for the same period was $859 million, reflecting an 82% increase from $473 million in the prior year.
| Cash Flow Metrics ($ in millions) | 2024 | 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | 1,810 | 1,445 |
| Capital Expenditures | (951) | (972) |
| Free Cash Flow | 859 | 473 |
Stock Performance and Dividends
As of May 2024, Northrop Grumman increased its quarterly dividend by 10% to $2.06 per share from $1.87 per share.
The company continues to engage in share repurchase programs, reflecting its commitment to return value to shareholders.
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Article updated on 8 Nov 2024
Resources:
- Northrop Grumman Corporation (NOC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Northrop Grumman Corporation (NOC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Northrop Grumman Corporation (NOC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.