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Northrop Grumman Lifts Outlook as Second-Quarter Orders Boost Backlog to Record High

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Northrop Grumman Lifts Outlook as Second-Quarter Orders Boost Backlog to Record High

Northrop Grumman (NOC) raised its full-year guidance on Tuesday as strong second-quarter orders pushed the aerospace and defense technology company's backlog to a record high.

The company now expects revenue of $43.75 billion to $44.25 billion for 2026, up from its prior range of $43.50 billion to $44 billion. It projects adjusted earnings per share at $28.60 to $29.10, compared with $27.40 to $27.90 previously expected. The FactSet-polled consensus puts full-year revenue at $44 billion and adjusted EPS at $27.94.

"This (revenue) outlook reflects a second half step up in sales that is similar to the profile we experienced last year," Chief Financial Officer John Greene said during an earnings call, according to a FactSet transcript. "With this in mind, we anticipate mid to high single-digit year-over-year sales growth in (the third quarter)."

The defense contractor reported second-quarter net awards of $20 billion, lifting its total backlog to a record $104.69 billion. Major awards included $7.6 billion for the Sentinel system, $4.3 billion for restricted programs and $1 billion for F-35.

"We expect continued strong bookings for the remainder of the year, as well as increased momentum in government outlays," Chief Executive Kathy Warden said in the earnings call. "These dynamics strengthen our confidence and outlook for accelerating sales growth in the second half of the year."

The company's second-quarter sales increased 5% annually to $10.88 billion, above the FactSet-polled consensus estimate of $10.80 billion. Earnings per share fell to $7.68 from $8.15 a year earlier.

Northrop's aeronautics, defense, mission and space system businesses all logged revenue gains year-over-year.

Shares of Northrop declined 2.1% in Tuesday trade, and have fallen 10% so far this year.

Aerospace and defense companies RTX (RTX) and Lockheed Martin (LMT) are scheduled to report quarterly results on Thursday.

Price: $509.92, Change: $-14.04, Percent Change: -2.68%

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