Northrop Grumman (NOC) investor relations material

Market environment and demand trends

• National security environment is driving increased demand for advanced defense capabilities, resulting in robust backlog growth and mid-single-digit sales growth projected this year, with acceleration expected next year.

• Immediate uptick in demand for munitions and sustainment due to ongoing military operations, with urgent replenishment needs and increased aircraft utilization.

• Growing focus on affordable counter-drone solutions and a mix of high-end and lower-cost systems to address evolving threats.

• International demand for munitions and defense systems is broad-based, with notable growth in Europe and the Middle East, including co-production arrangements.

Key program updates and growth drivers

• B-21 program is progressing well, with investments to accelerate production and potential for increased orders; step-up in annual sales expected after infrastructure build-out in a few years.

• TACAMO and F-35 programs are contributing to steady growth, with TACAMO transitioning to production and F-35 seeing modest growth from sustainment and modernization.

• New unmanned aircraft (Talon Blue/YFQ-48A) developed to offer affordable, mission-capable options, positioning for future market opportunities.

• Sentinel missile program is ahead of schedule, targeting cost reductions and earlier pad launch in 2027, with strong milestone performance.

• Defense systems and munitions businesses are experiencing double-digit growth, driven by tactical missile demand and export opportunities.

Space and mission systems outlook

• Space segment rebounding after a brief downturn, with accelerating growth expected and strong positioning for U.S. and international opportunities.

• Participation in key space programs, including missile tracking, warning, and SDA tracking layer, with 150 satellites in backlog and ongoing competitiveness across tranches.

• Mission systems business is highly diversified and profitable, fueling differentiation in platforms across all domains, with mid-single-digit growth and sustainable 15% margins anticipated.