Northrop Grumman announces strong performance in Q2
Northrop Grumman reports $0.4 billion of new F-35 awards. (Photo: Northrop Grumman)
Northrop Grumman has released their Q2 financial results, including sales, profit and concerns for the future.
Northrop Grumman revealed strong performance in Q2, as 2021 sales guidance has been raised from $35.8 Billion to $36.2 Billion and transaction-adjusted EPS Guidance from $24.40 to $24.80.
The Q2 sales results show an increase of 3% to $9.2 billion. This rise has been attributed to increased sales at Space Systems and Mission Systems, whereas Defence Systems has seen a lower level of sales.
The transaction-adjusted net earnings have increased from $1.03 billion in Q1 to $2.12 billion in Q2, this is a rise of 13% when compared to Q2, 2020 which reported earnings of $1.87 billion.
Net awards this quarter are valued at $6.5 billion with a backlog of $76 billion – an increase of 5% in 2021. Significant new awards include $0.4 billion for F-35, $0.3 billion for GMLRS, $0.3 billion for E-2 Hawkeye and $0.2 billion for Global Hawk.
The effective tax rate has increased from 16.5% to 20.4%, primarily due to a change made in tax revenue recognition on certain long-term contracts.
While performance has been strong, there are still many issues that are considered as risks for the future such as Covid-19, dependence on the US government for business and significant delays or reductions in appropriations for programmes
More from Defence Notes
-
![Estonia opts for smart, adaptable and cooperative solutions in the face of Russian threat]()
Estonia opts for smart, adaptable and cooperative solutions in the face of Russian threat
Estonian-made equipment is being put through the toughest of evaluations in the hands of Ukrainian soldiers resisting the full-scale Russian invasion which began in 2022. The country has long seen the threat and is continuing to adapt for the future.
-
![UK faces cost of balancing defensive capabilities abroad as Iran conflict widens]()
UK faces cost of balancing defensive capabilities abroad as Iran conflict widens
The UK has recently deployed a Type 45 destroyer to Cyprus and has bolstered its presence in the Middle East in recent weeks with supporting air power to protect neighbouring countries’ air defences.
-
![White House calls on Pentagon contractors to “rapidly and aggressively” boost weapon production]()
White House calls on Pentagon contractors to “rapidly and aggressively” boost weapon production
Intended to sustain Operation Epic Fury against Iran, efforts to increase the production of weapons and ammunition could expose long-standing weaknesses in the US defence industrial base.
-
![India’s strategic defence footprint expansion could be accelerated by Iran-Israel conflict]()
India’s strategic defence footprint expansion could be accelerated by Iran-Israel conflict
The latest escalation between Iran and Israel could shape New Delhi’s next-generation shield as India deepens cooperation with Israel on missile defence and drone production.
-
![Is the US magazine of air defence interceptors deep enough to sustain a long campaign against Iran?]()
Is the US magazine of air defence interceptors deep enough to sustain a long campaign against Iran?
The Pentagon spent a considerable number of THAAD and SM-3 rounds to defend against Iranian missiles in 2025 and has not fully replenished its reserves.
