$NOC

NORTHROP GRUMMAN CORP /DE/

CIK:0001133421|SEC Filings

Condensed Consolidated Statements of Earnings and Comprehensive Income (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Revenues	$ 10,876	$ 10,351	$ 20,757	$ 19,819
Operating costs and expenses
General and administrative expenses	1,025	1,016	1,996	2,023
Total operating costs and expenses	9,780	9,157	18,672	18,052
Gain on sale of business	0	231	0	231
Operating income	1,096	1,425	2,085	1,998
Other (expense) income
Interest expense	(161)	(173)	(323)	(329)
Non-operating FAS pension benefit	166	137	332	267
Other, net	67	38	104	69
Earnings before income taxes	1,168	1,427	2,198	2,005
Federal and foreign income tax expense	74	253	229	350
Net earnings	$ 1,094	$ 1,174	$ 1,969	$ 1,655
Basic earnings per share
Basic earnings per share	$ 7.70	$ 8.17	$ 13.86	$ 11.48
Weighted-average common shares outstanding, in millions	142.1	143.7	142.1	144.2
Diluted earnings per share
Diluted earnings per share	$ 7.68	$ 8.15	$ 13.83	$ 11.45
Weighted-average diluted shares outstanding, in millions	142.4	144.0	142.4	144.5
Net earnings (from above)	$ 1,094	$ 1,174	$ 1,969	$ 1,655
Change in cumulative translation adjustment	0	(7)	2	(9)
Change in other, net	(3)	11	(6)	19
Other comprehensive (loss) income, net of tax	(3)	18	(8)	28
Comprehensive income	1,091	1,192	1,961	1,683
Product [Member]
Revenues	8,808	8,258	16,766	15,779
Cost of Sales	7,155	6,526	13,588	12,892
Service [Member]
Revenues	2,068	2,093	3,991	4,040
Cost of Sales	$ 1,600	$ 1,615	$ 3,088	$ 3,137

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Operating activities
Net earnings	$ 1,969	$ 1,655
Adjustments to reconcile to net cash used in operating activities:
Depreciation and amortization	739	687
Stock-based compensation	49	40
Deferred income taxes	453	(114)
B-21 loss provision	0	477
Gain on sale of business	0	(231)
Net periodic pension and OPB income	(240)	(169)
Pension and OPB contributions	(63)	(62)
Changes in assets and liabilities:
Accounts receivable, net	(936)	(929)
Unbilled receivables, net	(860)	(1,343)
Inventoried costs, net	(118)	(102)
Prepaid expenses and other assets	141	21
Increase (Decrease) in Accounts Payable	(345)	(2)
Increase (Decrease) in Contract with Customer, Liability	(263)	(70)
Increase (Decrease) in Other Accrued Liabilities	(836)	(420)
Income taxes payable, net	(38)	(145)
Other operating activities, net	(28)	10
Net cash used in operating activities	(376)	(697)
Investing activities
Capital expenditures	(469)	(487)
Proceeds from Sale, Maturity and Collection of Investments	107	0
Proceeds from Divestiture of Businesses	0	333
Other investing activities, net	(2)	(37)
Net cash used in investing activities	(364)	(191)
Financing activities
Proceeds from Issuance of Long-Term Debt	0	998
Payments of long-term debt	(527)	(1,500)
Proceeds from (Repayments of) Commercial Paper	0	566
Common stock repurchases	(68)	(891)
Cash dividends paid	(684)	(634)
Payments of employee taxes withheld from share-based awards	(58)	(38)
Other financing activities, net	(19)	(67)
Net cash used in financing activities	(1,356)	(1,566)
Cash, Cash Equivalent, Restricted Cash, and Restricted Cash Equivalent, Period Increase (Decrease), Including Exchange Rate Effect, Continuing Operation	(2,096)	(2,454)
Cash and cash equivalents, beginning of year	4,403	4,353
Cash and cash equivalents, end of period	$ 2,307	$ 1,899

Condensed Consolidated Statements of Financial Position (Unaudited) - USD ($) $ in Millions	Jun. 30, 2026	Dec. 31, 2025
Assets
Cash and cash equivalents	$ 2,307	$ 4,403
Accounts receivable, net	2,311	1,375
Unbilled receivables, net	7,953	6,544
Inventoried costs, net	1,415	1,309
Prepaid expenses and other current assets	1,604	1,656
Total current assets	15,590	15,287
Property, plant and equipment, net of accumulated depreciation of $10,061 for 2026 and $9,648 for 2025	10,297	10,972
Operating lease right-of-use assets	1,901	1,859
Goodwill	17,439	17,437
Deferred tax assets	598	1,051
Pension and other postretirement benefit plan assets	3,447	3,167
Other non-current assets	1,491	1,604
Total assets	50,763	51,377
Liabilities
Trade accounts payable	2,895	3,240
Accrued employee compensation	1,991	2,309
Advance payments and billings in excess of costs incurred	3,823	4,086
Other current liabilities	4,636	4,247
Total current liabilities	13,345	13,882
Long-term debt, net of current portion of $763 for 2026 and $534 for 2025	14,428	15,162
Pension and other postretirement benefit plan liabilities	1,086	1,110
Operating lease liabilities	1,861	1,857
Other non-current liabilities	2,159	2,692
Total liabilities	32,879	34,703
Commitments and Contingencies
Shareholders’ equity
Preferred stock, $1 par value; 10,000,000 shares authorized; no shares issued and outstanding	0	0
Common stock, $1 par value; 800,000,000 shares authorized; issued and outstanding: 2026—142,062,680 and 2025—141,997,194	142	142
Paid-in capital	37	0
Retained earnings	17,839	16,658
Accumulated other comprehensive loss	(134)	(126)
Total shareholders’ equity	17,884	16,674
Total liabilities and shareholders’ equity	$ 50,763	$ 51,377