By Mike Stone and Aishwarya Jain
Jan 27 (Reuters) – Defense supplier Northrop Grumman posted higher fourth-quarter profit and revenue on Tuesday, helped by strong sales in its aeronautics business amid heightened geopolitical uncertainty.
Robust demand for arms, fueled by escalating tensions in the Middle East and the ongoing Russia-Ukraine conflict, has boosted sales for Northrop Grumman and other defense contractors.
Global tensions have also risen under the Trump administration, including the capture of the Venezuelan president and an aggressive bid to acquire Greenland, increasing strains in South America and creating uncertainty within the NATO alliance.
Sales in Northrop’s aeronautics segment, which produces the B-21 Raider long-range strike aircraft and fuselages for Lockheed Martin’s F-35 aircraft, rose 18% during the fourth quarter.
Falls Church, Virginia-based Northrop also saw strong fourth-quarter sales in its mission systems business, which makes communications and electronic warfare systems mainly for the U.S. defense and intelligence community.
Sales in the mission systems segment rose 10%, largely due to a ramp-up in restricted airborne radar programs and strong demand for parts used in the F-35 aircraft.
Northrop’s defense and space segments sales rose 7% and 5%, respectively, during the quarter.
However, its 2026 sales forecast of $43.5 billion to $44 billion fell short of Wall Street estimates of $44.24 billion, as per LSEG-compiled data.
Shares of the company were down 2% in light premarket trading.
Delays in Trump’s Golden Dome initiative to set up a comprehensive homeland missile defense system have also deferred potential sales, as Northrop was expected to compete for contracts.
First announced in January 2025, the initiative has yet to meaningfully draw on the $25 billion appropriated last summer, as officials continue to debate its space-based architecture.
The defense supplier posted a total revenue of $11.71 billion for the quarter ended December 31, up about 10% from a year ago.
Excluding items, its per-share profit was $7.23 in the quarter, compared with $6.39 last year.
(Reporting by Aishwarya Jain in Bengaluru; Editing by Tasim Zahid and Vijay Kishore)
Comments