Northrop lifts 2026 profit forecast on strong defense demand, record backlog

Northrop Grumman

Tue 11:04

       Oct 20 (Reuters) - Northrop Grumman  NOC.N  raised its
annual profit forecast on Tuesday after strong demand for
military aircraft, missile and defense programs helped lift its
third-quarter profit and sales, and drove its backlog to a
record high.
    The defense contractor, which makesthe B-21 Raider bomber
and parts for the F-35 fighter jets, has been benefiting from
rising US and allied military spending amid heightened
geopolitical tensions.
    "I'm confident our new record backlog, well-positioned
portfolio and investments, and industry-leading performance will
continue to drive sales and earnings growth as reflected in our
2027 outlook," said CEO Kathy Warden.
    The company secured $16.4 billion in new contracts during
the quarter, with its orders growing at 1.5 times its billings,
driven by strong demand across programs including Sentinel, the
F-35, Virginia-class submarines and certain classified programs.
    Northrop's backlog rose to a record $109.6 billion as of
September 30.
    It now sees full-year 2026 adjusted profit per share in the
range of $29.35 to $29.75, compared with its prior forecast
between $28.60 and $29.10.
    Quarterly sales rose 7% from a year ago to $11.12 billion on
higher sales across all  four sectors.
    This growth was mainly driven by a 14% increase at its
Aeronautics Systems unit, which benefited from increased B-21
bomber sales, higher F-35 production and sustainment work.
    Sales at its Defense Systems segment increased 12%, boosted
by the continued ramp-up of the Sentinel missile program.
    Its quarterly profit rose about 2% to $1.12 billion, or
$7.89 per share, from $1.10 billion, or $7.67 per share, a year
earlier.
    
    

    (Reporting by Aatreyee Dasgupta in Bengaluru; Editing by
Leroy Leo)
 ((Aatreyee.Dasgupta@thomsonreuters.com;))