Northrop Grumman Q2 Sales Rise Slightly to $19.7B

TL;DR

NGMM Q2 sales up slightly to $19.7B YTD. Defense spending steady.

AI Summary

Northrop Grumman Corp. reported its Q2 2024 results, with total sales for the six months ending June 30, 2024, reaching $19.7 billion. This represents a slight increase compared to the $19.5 billion in sales for the same period in 2023. The company's fiscal year ends on December 31st.

Why It Matters

This filing provides insight into Northrop Grumman's financial performance in the first half of 2024, indicating stable revenue generation in a key defense sector.

Risk Assessment

Risk Level: low — The filing indicates a stable financial performance with a slight increase in sales, suggesting no immediate significant financial risks.

Key Numbers

• $19.7B — Total Sales (YTD) (Sales for the first six months of 2024)
• $19.5B — Total Sales (YTD) (Sales for the first six months of 2023)
• 2024-06-30 — Reporting Period End (End date for the Q2 2024 financial reporting)

Key Players & Entities

• NORTHROP GRUMMAN CORP /DE/ (company) — Filer of the 10-Q report
• 20240630 (date) — End of the reporting period
• $19.7 billion (dollar_amount) — Total sales for the six months ending June 30, 2024
• $19.5 billion (dollar_amount) — Total sales for the six months ending June 30, 2023

FAQ

Filing Documents

• noc-20240630.htm (10-Q) — 1638KB
• noc-06302024xex102.htm (EX-10.2) — 61KB
• noc-06302024xex103.htm (EX-10.3) — 10KB
• noc-06302024xex15.htm (EX-15) — 4KB
• noc-06302024xex311.htm (EX-31.1) — 10KB
• noc-06302024xex312.htm (EX-31.2) — 10KB
• noc-06302024xex321.htm (EX-32.1) — 5KB
• noc-06302024xex322.htm (EX-32.2) — 5KB
• 0001133421-24-000052.txt ( ) — 8271KB
• noc-20240630.xsd (EX-101.SCH) — 42KB
• noc-20240630_cal.xml (EX-101.CAL) — 46KB
• noc-20240630_def.xml (EX-101.DEF) — 211KB
• noc-20240630_lab.xml (EX-101.LAB) — 585KB
• noc-20240630_pre.xml (EX-101.PRE) — 403KB
• noc-20240630_htm.xml (XML) — 1608KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) Condensed Consolidated Statements of Earnings and Comprehensive Income 1 Condensed Consolidated Statements of Financial Position 2 Condensed Consolidated Statements of Cash Flows 3 Condensed Consolidated Statements of Changes in Shareholders' Equity 4 Notes to Condensed Consolidated Financial Statements 1. Basis of Presentation 5 2. Earnings Per Share, Share Repurchases and Dividends on Common Stock 8 3. Inventoried Costs, Net 9 4. Income Taxes 10 5. Fair Value of Financial Instruments 10 6. Investigations, Claims and Litigation 12 7. Commitments and Contingencies 12 8. Retirement Benefits 14 9. Stock Compensation Plans and Other Compensation Arrangements 14 10. Segment Information 15 Report of Independent Registered Public Accounting Firm 19

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Overview 20 Consolidated Operating Results 21 Segment Operating Results 23 Product and Service Analysis 28 Backlog 29 Liquidity and Capital Resources 29 Critical Accounting Policies, Estimates and Judgments 31 Accounting Standards Updates 31

Forward-Looking Statements and Projections

Forward-Looking Statements and Projections 31

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 32

Controls and Procedures

Item 4. Controls and Procedures 32

– OTHER INFORMATION

PART II – OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 33

Risk Factors

Item 1A. Risk Factors 33

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 33

Other Information

Item 5. Other Information 34

Exhibits

Item 6. Exhibits 35

Signatures

Signatures 36 i Table of Contents NORTHROP GRUMMAN CORPORATION

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME (Unaudited) Three Months Ended June 30 Six Months Ended June 30 $ in millions, except per share amounts 2024 2023 2024 2023 Sales Product $ 8,076 $ 7,441 $ 16,178 $ 14,712 Service 2,142 2,135 4,173 4,165 Total sales 10,218 9,576 20,351 18,877 Operating costs and expenses Product 6,388 5,876 12,799 11,603 Service 1,639 1,660 3,228 3,249 General and administrative expenses 1,101 1,073 2,163 2,111 Total operating costs and expenses 9,128 8,609 18,190 16,963 Operating income 1,090 967 2,161 1,914 Other (expense) income Interest expense ( 154 ) ( 147 ) ( 300 ) ( 276 ) Non-operating FAS pension benefit 167 133 335 265 Other, net 43 34 81 82 Earnings before income taxes 1,146 987 2,277 1,985 Federal and foreign income tax expense 206 175 393 331 Net earnings $ 940 $ 812 $ 1,884 $ 1,654 Basic earnings per share $ 6.37 $ 5.35 $ 12.72 $ 10.87 Weighted-average common shares outstanding, in millions 147.5 151.7 148.1 152.1 Diluted earnings per share $ 6.36 $ 5.34 $ 12.69 $ 10.83 Weighted-average diluted shares outstanding, in millions 147.7 152.2 148.5 152.7 Net earnings (from above) $ 940 $ 812 $ 1,884 $ 1,654 Other comprehensive (loss) income, net of tax Change in cumulative translation adjustment ( 1 ) 3 — 5 Change in other, net ( 2 ) ( 2 ) ( 18 ) ( 2 ) Other comprehensive (loss) income, net of tax ( 3 ) 1 ( 18 ) 3 Comprehensive income $ 937 $ 813 $ 1,866 $ 1,657 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. -1- Table of Contents NORTHROP GRUMMAN CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Unaudited) $ in millions, except par value June 30, 2024 December 31, 2023 Assets Cash and cash equivalents $ 3,272 $ 3,109 Accounts receivable, net 1,694 1,454 Unbilled receivables, net 6,434 5,693 Inventoried costs, net 1,504 1,109 Prepaid expenses and

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View this 10-Q filing on SEC EDGAR