Northrop Grumman Corporation · NYSE:NOC
Northrop Grumman — Q1 2026 Earnings Presentation
16 slides from Northrop Grumman's earnings presentation, Apr 21, 2026
Slide 1: First Quarter 2026 Conference Call
FIRST QUARTER 2026 CONFERENCE CALL KATHY WARDEN JOHN GREENE Chair, Chief Executive Officer Corporate Vice President and President and Chief Financial Officer Pictured: B-21 Raider APRIL 21, 2026
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation and the information we are incorporating by reference, and statements to be made on the earnings conference call, Business and Operational Risks contain or may contain statements that constitute “forward-looking statements” within the meaning of the Priva
Slide 3: Enterprise Summary
Enterprise Summary Portfolio well aligned to priorities outlined in the FY27 U.S. defense budget request Expanding annual production capacity on the B-21 aircraft by 25 percent Accelerating initial operation capability of Sentinel program Delivered first quarter results consistent with company expec
Slide 4: Sales & Segment Margin Rate
Sales & Segment Margin Rate1 Three Months Ended March 31 Sales Segment Margin Rate1 ($M) 2026 2025 ▲% 2026 2025 ▲% Aeronautics Systems $3,283 $2,814 17% 9.3% (6.5)% NM Defense Systems 1,899 1,805 5% 9.7% 9.9% (20) bps Organic Sales1 Defense Systems 1,899 1,733 10% Mission Systems 2,861 2,807 2% 15.1
Slide 5: Q1 Diluted EPS Bridge
Q1 Diluted EPS Bridge +85% Q1 2025 $3.32 B-21 Adjustment in prior year 2.74 Segment Performance 0.25 $6.14 Net Pension1 (0.08) Corporate Unallocated and Other (0.09) $3.32 Q1 2026 $6.14 Q1 2025 Q1 2026 Earnings per share increase driven by strong segment performance 1. Net Pension tax effected on a
Slide 6: 2026 Company Level Guidance
2026 Company Level Guidance1 ($M), except per share amounts As of 4/21/2026 Sales $43,500 — $44,000 Segment operating income2 $4,850 — $5,000 MTM-adjusted EPS2 $27.40 — $27.90 Free cash flow2 $3,100 — $3,500 Company reaffirms 2026 financial guidance for key metrics 1. See the company’s first quarter
Slide 7: 2026 Segment Guidance
2026 Segment Guidance1 As of 4/21/2026 Sales ($B) OM Rate % Aeronautics Systems Mid $13 Low to Mid 9% Defense Systems Mid to High $8 ~10% Mission Systems High $12 High 14% Space Systems ~$11 ~11% Intersegment Eliminations ~($2.4) High 13% Company reaffirms segment guidance including broad based grow
Slide 8: Summary
Summary Strong first quarter results consistent with company expectations Enduring global demand and robust backlog position the company for sustainable growth Purpose built portfolio with strategic alignment to global defense priorities Industry leading capital investments in defense industrial bas
Slide 9: Appendix
Appendix First Quarter 2026 Conference Call 9
Slide 10: 2026 Supplemental Guidance
2026 Supplemental Guidance1 ($M) As of 4/21/2026 Total Net FAS/CAS pension adjustment2 ~$700 Unallocated corporate expense: Intangible asset amortization and PP&E step-up depreciation ~$(65) Other items ~$(280) Operating income $4,540 — $4,690 Interest expense ~$(620) Effective tax rate % Low to Mid
Slide 11: 2026 Working Days
2026 Working Days Number of Days in Reporting Period1 2026 2025 First Quarter 61 62 Second Quarter 64 64 Third Quarter 63 63 Fourth Quarter 63 62 Full Year 251 251 1. Quarterly information is labeled using a calendar convention; that is, first quarter is consistently labeled as ending on March 31, s
Slide 12: Non-GAAP Definitions
Non-GAAP Definitions Non-GAAP Financial Measures Disclosure: This presentation contains non-GAAP (accounting principles generally accepted in the United States of America) financial measures, as defined by SEC Regulation G and indicated by a footnote in this presentation. Definitions for the non-GAA
Slide 13: Non-GAAP Reconciliations
Non-GAAP Reconciliations Segment Operating Income and Margin Rate Three Months Ended March 31 ($M) 2026 2025 Total sales $9,881 $9,468 Operating income $989 $573 Operating margin rate 10.0% 6.1% Reconciliation to segment operating income: FAS/CAS operating adjustment $(7) $(63) Unallocated corporate
Slide 14: Non-GAAP Reconciliations
Non-GAAP Reconciliations Free Cash Flow Three Months Ended March 31 ($M) 2026 2025 % Change Net cash provided by operating activities $(1,656) $(1,565) (6)% Capital expenditures (167) (256) (35)% Free cash flow $(1,823) $(1,821) —% First Quarter 2026 Conference Call 14
Slide 15: Non-GAAP Reconciliations
Non-GAAP Reconciliations Organic Sales Three Months Ended March 31 ($M) 2026 2025 % Change Sales $9,881 $9,468 4% Less: Training services sales — (72) Organic Sales $9,881 $9,396 5% First Quarter 2026 Conference Call 15
Slide 16: First Quarter 2026 Conference Call
First Quarter 2026 Conference Call 16