With your permission, we use privacy-limited analytics to understand which research journeys work. We do not run advertising trackers or session replay. You can change this choice in Preferences. Read the Privacy Policy.
Educational research only - not investment advice, an offer, or a trade instruction. Confirm current data and do your own due diligence before acting.
NOC trades against a final fair-value range of $486.28-$966.07, with the midpoint set by the accepted valuation synthesis rather than earlier draft model outputs.
A prolonged U.S. government continuing resolution combined with unexpected inflation in fixed-price development contracts.
A deeply divided Congress enforces strict defense budget caps, halting modernization of the nuclear triad and capping space spending.
The B-21 Raider program encounters severe technical hurdles leading to massive cost overruns on fixed-price lots.
Rapid advancements by commercial space entities fully disrupt Northrop's military space and satellite businesses.
| Line item | 2022-12-31 | 2023-12-31 | 2024-12-31 | 2025-12-31 | Trend |
|---|---|---|---|---|---|
| Revenue | $36.60B | $39.29B+7.3% | $41.03B+4.4% | $41.95B+2.2% | +4.7% |
| Gross profit | $7.47B | $6.55B | $8.36B | $8.31B | +3.6% |
| Operating income | $3.60B | $2.54B | $4.37B | $4.28B | +5.9% |
| Net income | $4.90B | $2.06B-58.0% | $4.17B+102.4% | $4.18B+0.2% | -5.1% |
| EPS (diluted) | $31.47 | $13.53 | $28.34 | $29.08 | -2.6% |
| EBITDA | $7.68B | $4.23B | $7.01B | $7.21B | -2.1% |
| R&D | — | — | — | — | — |
| SG&A | $3.87B | $4.01B | $3.99B | $4.03B | +1.4% |
Cash-flow quality is reflected in the OCFOperating cash flowCash generated from the company's core operations after working-capital changes but before capital expenditures. The first line of the cash-flow statement. / net incomeNet IncomeNet Income is an income-statement line item used to reconcile revenue to operating profit, pre-tax income, net income, or per-share earnings. It should be compared across periods and against peer disclosure conventions., accounting-quality, and ROICROICReturn on invested capital. Operating profit (after tax) divided by invested capital. The single best gauge of capital-efficiency. Spread over WACC = economic value created. rows above.
Capital allocation should be evaluated against reinvestment needs, balance-sheet strength, and shareholder returns.
| Deterioration versus the report thesis |
| Free cash flow conversion drops below 1.0x | Monitor | Deterioration versus the report thesis |
| Book-to-bill ratio falls below 1.0 for multiple quarters | Monitor | Deterioration versus the report thesis |
