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Northrop Grumman (NOC) investor relations material

Northrop Grumman Baird 55th Annual Global Industrial Conference summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Baird 55th Annual Global Industrial Conference summary12 Nov, 2025

Industry landscape and demand trends

  • Department of Defense is undergoing transformation with new acquisition strategies and a focus on homeland security, driving strong demand in the U.S. and globally.

  • Acquisition reform aims to accelerate spending and foster industry partnerships, creating opportunities for innovative solutions.

  • International demand is surging, with European and Middle Eastern markets expanding and double-digit international growth expected.

  • Backlog exceeds $90 billion, with future production awards anticipated to support continued growth.

  • Portfolio is balanced between high-end technology and scalable, affordable solutions like Lumberjack to address evolving threats.

Segment performance and innovation

  • Defense systems segment is experiencing exceptional international growth, driven by munitions demand and integrated battle command systems.

  • B-21 program is progressing through development and low-rate initial production, with two aircraft in test and future lots planned annually.

  • Digital transformation and advanced manufacturing are improving cost efficiency and reducing rework, especially in programs like B-21.

  • Space segment has shifted to higher-volume, lower-cost satellite production, positioning for long-term growth despite recent headwinds.

  • Microelectronics foundries are expanding to meet domestic demand, producing over a million chips annually and supporting national security applications.

Strategic outlook and financials

  • Margin expansion is driven by performance improvements, digital transformation, and a favorable mix shift toward international and fixed-price contracts.

  • Free cash flow is on track to double by 2028, supported by margin growth and reduced CapEx as a percentage of sales.

  • Capital deployment prioritizes internal investment, competitive dividends with 22 consecutive raises, and share repurchases.

  • Solid rocket motor capacity has been expanded, ensuring supply chain reliability and positioning to capture additional market share.

  • Sentinel program remains in development, with risk reduction activities underway and production acceleration being pursued.

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Frequently asked questions

Northrop Grumman Corporation provides innovative systems, products and solutions in unmanned systems; aerospace systems; C4ISR and logistics and modernization; cyber security; strike, surveillance and mobility; command, control, communications, computers and intelligence solutions, and naval systems to government and commercial customers. It's aerospace products include long-range strike bombers, combat avionics, surveillance aircrafts and related software, training services and other mission support services. The company was founded in 1939 and is based in Falls Church, Virginia.

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