How Does Northrop Grumman Make its Money?
Northrop Grumman is a leading global aerospace and defense technology company, best known as the maker of the B-21 Raider stealth bomber and a prime contractor on major classified defense programs. The company provides advanced systems in autonomous vehicles, cyber, C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance), space, and strike capabilities. Northrop Grumman is one of the five largest US defense contractors and a key provider of nuclear deterrence systems.
Northrop Grumman (NOC) Business Model
Northrop Grumman operates in the aerospace & defense sector. Below is a summary of Northrop Grumman’s revenue streams, how the company generates income, and the key financial metrics from its most recent annual report. This breakdown uses data from Northrop Grumman’s 2024 fiscal year filings with the SEC.
Northrop Grumman Competitors
Northrop Grumman’s key competitors and comparable public companies in the aerospace & defense sector include Lockheed Martin, RTX Corporation, Boeing, and GE Aerospace. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Northrop Grumman stacks up by comparing their revenue breakdown, margins, and growth metrics.
Northrop Grumman Competitors
Northrop Grumman’s key competitors and comparable public companies in the aerospace & defense sector include Lockheed Martin, RTX Corporation, Boeing, and GE Aerospace. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Northrop Grumman stacks up by comparing their revenue breakdown, margins, and growth metrics.
Northrop Grumman Competitors
Northrop Grumman’s key competitors and comparable public companies in the aerospace & defense sector include Lockheed Martin, RTX Corporation, Boeing, and GE Aerospace. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Northrop Grumman stacks up by comparing their revenue breakdown, margins, and growth metrics.
Northrop Grumman Competitors
Northrop Grumman’s key competitors and comparable public companies in the aerospace & defense sector include Lockheed Martin, RTX Corporation, Boeing, and GE Aerospace. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Northrop Grumman stacks up by comparing their revenue breakdown, margins, and growth metrics.
Northrop Grumman Competitors
Northrop Grumman’s key competitors and comparable public companies in the aerospace & defense sector include Lockheed Martin, RTX Corporation, Boeing, and GE Aerospace. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Northrop Grumman stacks up by comparing their revenue breakdown, margins, and growth metrics.
Northrop Grumman Competitors
Northrop Grumman’s key competitors and comparable public companies in the aerospace & defense sector include Lockheed Martin, RTX Corporation, Boeing, and GE Aerospace. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Northrop Grumman stacks up by comparing their revenue breakdown, margins, and growth metrics.
Northrop Grumman Competitors
Northrop Grumman’s key competitors and comparable public companies in the aerospace & defense sector include Lockheed Martin, RTX Corporation, Boeing, and GE Aerospace. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Northrop Grumman stacks up by comparing their revenue breakdown, margins, and growth metrics.
Revenue Breakdown
| Segment | 2024 | 2023 | YoY Growth |
|---|---|---|---|
| Aeronautics Systems | $13,000 | $11,800 | +10.2% |
| Defense Systems | $6,600 | $6,400 | +3.1% |
| Mission Systems | $11,000 | $10,500 | +4.8% |
| Space Systems | $14,100 | $13,500 | +4.4% |
| Total Revenue | $41,400 | $39,300 | +5.3% |
Aeronautics Systems — 31% of Revenue
Defense Systems — 16% of Revenue
Mission Systems — 27% of Revenue
Space Systems — 34% of Revenue
Income Statement Overview
| Metric | 2024 | 2023 |
|---|---|---|
| Total Revenue | $41,400 | $39,300 |
| Cost of Revenue | $35,400 | $33,700 |
| Gross Profit | $6,000 | $5,600 |
| Operating Expenses | $1,800 | $1,700 |
| Operating Income | $4,200 | $3,900 |
| Net Income | $4,000 | $3,200 |
All values in millions USD unless otherwise stated.
Key Financial Metrics
- Gross Margin: 14.5%
- Operating Margin: 10.1%
- Revenue Growth: 5.3%
Is Northrop Grumman Profitable?
Yes, Northrop Grumman is profitable. The company reported net income of $4,000 on total revenue of $41,400. With an operating margin of 10.1%, Northrop Grumman demonstrates solid profitability for the aerospace & defense sector. The gross margin of 14.5% reflects Northrop Grumman’s pricing power and cost structure.
What to Watch
- B-21 Raider stealth bomber production ramp-up and program profitability
- Sentinel (GBSD) ICBM replacement program execution and schedule
- Rising US and NATO defense budgets driving backlog growth
- Space Systems growth from national security satellite programs
Northrop Grumman (NOC) Financial Summary
Northrop Grumman (NOC) is an aerospace & defense company that generated $41,400 in total revenue in fiscal year 2024. Revenue grew 5.3% year-over-year. The company earned $4,000 in net income, making it profitable. For a deeper look at Northrop Grumman’s revenue breakdown, business segments, and financial performance, review the detailed analysis above.