Northrop Grumman Corporation (NOC): Business Model Canvas [Dec-2025 Updated]

You're looking at one of the biggest defense contractors, and honestly, figuring out how Northrop Grumman Corporation actually makes its money isn't simple, but it's critical. As someone who spent a decade leading analyst teams, I can tell you their model is pure government dependency, built on massive, long-term bets like the B-21 Raider and the Sentinel ICBM modernization. That huge $92.8 billion contract backlog gives you revenue visibility for years, but those fixed-price programs also carry real risk-we saw a $477 million hit on the B-21 in Q1 2025 alone. So, with a 2025 sales outlook between $41.7 billion and $41.9 billion, you need to see the full nine blocks of their Business Model Canvas to truly grasp where the stability meets the exposure. Dive below to see the nuts and bolts.

Northrop Grumman Corporation (NOC) - Canvas Business Model: Key Partnerships

You're looking at the web of relationships that keep Northrop Grumman Corporation running, the critical alliances that turn blueprints into hardware, especially with the U.S. government as the primary customer. Honestly, these aren't just vendor relationships; they're deep, multi-year commitments that define the company's operational capacity.

The relationship with the U.S. Department of Defense (DoD) is the bedrock, involving massive co-development and funding streams. For instance, in February 2025, Northrop Grumman landed two contracts totaling $1.4 billion to boost air and missile defense for the U.S. Army and Poland, centered around the Integrated Battle Command System (IBCS). One part of that was a $481 million, five-year contract from the Army's Aviation Missile Technology Consortium. Of that, $347.6 million went to support Poland's defense projects, while $133.7 million funded U.S. military efforts and the Guam Defense System. Separately, in July 2025, the DoD awarded Northrop Grumman over $180 million in contracts for next-generation mission planning systems, including a $114 million Air Force contract and a $55 million Navy contract. To be fair, the sheer volume is staggering; in Q1 2025 alone, new awards included $4.6 billion for restricted programs and $1.1 billion for F-35 programs. The company is the 5th largest contractor of the U.S. federal government, receiving over 2% of its total spending.

The scale of this government reliance is clear when you look at the top line; Northrop Grumman expects total sales between $42 billion and $42.5 billion for 2025, and in 2024, 87% of its revenues came from the U.S. federal government. The total backlog reflects this pipeline, standing at a record $92.8 billion as of Q1 2025.

When it comes to the supply chain, Northrop Grumman manages a network of over 10,000 suppliers globally. Key suppliers like Qorvo and Siemens are recognized for providing mission-critical components and digital tools. Qorvo received a Supplier Excellence Award in March 2025 for delivering high-performance, mission-critical RF solutions for defense radar and communication systems. Similarly, Siemens Digital Industries Software earned a Supplier Excellence Award in March 2025, recognized for its long-standing collaboration in digital transformation, using its software and comprehensive digital twin to optimize design and manufacturing processes.

International defense ministries are vital for co-production and technology transfer, often tied directly to major U.S. contracts. The February 2025 Poland contracts, totaling $1.4 billion, included $347.6 million specifically for Polish defense projects under the $899.6 million IBCS delivery contract. Poland is the first U.S. ally to adopt IBCS and plans to field six WISŁA and 23 NAREW batteries by 2031. Also, in July 2025, a BAE Systems modification included producing two OE-120/UPX Antenna Group Systems for Australia and two for Japan as part of Foreign Military Sales (FMS). Northrop Grumman Systems Corp. also received a $20,445,600 contract in July 2025 for H-1 mission computers for FMS customers, including 25 TRMCs for the Czech Republic. Overall, 12% of Northrop Grumman's 2024 revenue came from international sources.

The company relies heavily on specialized subcontractors for major platform systems. For example, in June 2025, BAE Systems received a $15,888,980 modification to produce seven OE-120/UPX Antenna Group Systems for various customers. Also in July 2025, BAE Systems Technology Solutions and Services Inc. was awarded a $138,549,731 contract for engineering services on airborne platforms. Northrop Grumman Systems Corp. itself secured a $16,995,686 contract in June 2025 for research and development involving algorithm development for multiple sensors.

In the space sector, partnerships with NASA and commercial space companies are key growth drivers, with space revenue projected at $11 billion for 2025. Northrop Grumman is evolving its Cygnus spacecraft to support NASA's low Earth orbit ventures. To bolster launch services, the company invested $50 million in space startup Firefly in May 2025. Furthermore, in April 2025, the U.S. Space Force awarded Northrop Grumman the Elixir mission to demonstrate a satellite refueling capability, building on its work developing solid rocket motors for programs like Space Launch Systems.

Here's a quick look at some contract values tied to these partnerships:

You should review the allocation of the $477 million pre-tax loss provision recognized in Q1 2025 on the B-21 program, as that directly impacts the financial health supporting these future commitments. Finance: draft 13-week cash view by Friday.

Northrop Grumman Corporation (NOC) - Canvas Business Model: Key Activities

You're looking at the core engine driving Northrop Grumman Corporation's revenue and future positioning as of late 2025. The key activities here are massive, long-term government contracts that require deep industrial capacity and advanced engineering.

Developing and producing the B-21 Raider stealth bomber remains a top priority, with the Air Force planning to buy at least 100 B-21s to replace older fleets. The push to accelerate manufacturing is real; Congress allocated $4.5 billion in the July budget reconciliation bill specifically to speed up B-21 production. Northrop Grumman is actively working with the Air Force on the framework for this acceleration, expecting to receive contracts for the third low-rate initial production (LRIP) lot and an advance procurement contract for the fifth lot by the fourth quarter of 2025. Honestly, this program has seen cost adjustments; for instance, Northrop reported a $477 million loss in April related to a process change meant to build the bomber faster.

The restructuring and executing the Sentinel ICBM modernization program is a massive undertaking, especially after the program triggered a Nunn-McCurdy breach due to significant cost overruns. The projected total cost has climbed to over $131 billion or even $141 billion, representing an increase of at least 37% or 81% over initial estimates. For fiscal year 2025, the Air Force earmarked $3.7 billion specifically for the Sentinel program. The Air Force plans to acquire 634 missiles, plus an additional 25 for Engineering and Manufacturing Development (EMD). A new Milestone B decision, which restarts the EMD phase, is expected by mid-2027.

Northrop Grumman is heavily involved in advanced R&D in digital engineering, cyber, and hypersonic missile defense. The company's 2025 projected investments in Research & Development (R&D) and Capital Expenditures (CapEx) are expected to total over $2.5 billion. In hypersonics, Northrop secured a $1.45 billion MACH-TB 2.0 contract to develop a low-cost hypersonic testbed, building on earlier work like a 2023 $9.4 million contract for ultra-high-temperature composites. The use of their digital ecosystem is a key differentiator; one demonstration showed that digital engineering cut engineering rework and redesign to less than one percent, compared to the 15-20% seen with traditional methods.

The activity of integrating complex battle management systems like IBCS for global defense is generating significant contract value, particularly with allies. Northrop Grumman won two contracts totaling almost $1.4 billion to deploy the Integrated Battle Command System (IBCS) for the U.S. Army and Poland.

Here's a quick look at the recent contract values tied to these integration and production activities:

Finally, the manufacturing of solid rocket motors and advanced munitions is a core function. Northrop Grumman is the sole qualified producer for the XM1211 High Explosive Proximity (HEP) fuzed round, securing a contract valued at over $200 million in December 2025. This 30x113mm round is designed to counter small Unmanned Aerial Systems (UAS). The company is also advancing rocket motor technology, having recently conducted a static test on the 22-inch diameter Solid Motor Adaptable, Scalable, Half Time/Cos, known as "SMASH!22".

Regarding the IBCS LRIP phase completion, Northrop finalized deliveries of Major End Items (MEIs) under the contract exceeding $1 billion since December 2021.

• Total MEIs delivered under LRIP: 142
• Engagement Operations Centers (EOCs) delivered: 35
• Integrated Fire Control Network (IFCN) Relays delivered: 32
• Integrated Collaborative Environments (ICEs) delivered: 75

The company is now set to transition this work to the new Enhanced Production and Integration Center (EPIC) in Madison, Alabama, for full-rate production.

Northrop Grumman Corporation (NOC) - Canvas Business Model: Key Resources

You're looking at the core assets that allow Northrop Grumman Corporation to operate in the highly specialized defense and aerospace sector. These aren't just assets; they are barriers to entry, built over decades.

Highly classified intellectual property (IP) for stealth and nuclear deterrence.

This IP is the foundation for its most critical programs. Consider the B-21 Raider stealth bomber; the financial commitment alone signals the value of the underlying technology. In the first quarter of 2025, Northrop Grumman recognized a $477 million pretax loss on the B-21 LRIP (Low-Rate Initial Production) phase, largely due to process changes to accelerate build rates and higher material costs. Also, the Sentinel Intercontinental Ballistic Missile (ICBM) program, a cornerstone of nuclear deterrence, has seen its estimated total cost surge by an alarming 81%, now reaching an estimated $141 billion. These figures represent the massive scale of the resources and programs protected by this proprietary knowledge.

Large, specialized workforce of approximately 100,000 employees.

The human capital here is irreplaceable for the classified work Northrop Grumman performs. As of December 31, 2024, the total number of employees stood at 97,000. This specialized team supports the execution of the massive contract base. For context on the scale of work per person, the 2024 revenue was $41.03 B, resulting in a revenue per employee of approximately $421,938 based on the 97,000 employee count at the end of 2024.

$92.8 billion contract backlog providing long-term revenue visibility.

This backlog is your clearest indicator of near-to-mid-term revenue stability, insulating the company from short-term market fluctuations. As of the first quarter of 2025, Northrop Grumman's total backlog hit a record $92.8 billion, up from $91.5 billion at the end of 2024. This provides significant revenue visibility, even as the company navigates program challenges. For instance, the company lifted its 2025 EPS view despite lowering its full-year revenue range to $41.70-$41.90 billion.

Here's how the backlog anchors the financial outlook:

Advanced manufacturing and test facilities (e.g., Palmdale, CA for B-21).

The physical footprint required to build and test systems like the B-21 is a non-transferable asset. The financial impact of these facilities is seen in the segment performance; for example, Aeronautics Systems sales were down 8% year-over-year in Q1 2025, partly due to lower B-21 sales and production timing. The scale of the infrastructure dictates the capital expenditure required to maintain and expand production capacity, which is critical for fulfilling the $92.8 billion backlog.

Digital engineering tools and a comprehensive digital twin capability.

While specific dollar figures for the digital infrastructure aren't always public, their necessity is implied by the push for efficiency and the complexity of the programs. The company's segment operating margin improved to 12.3% in Q3 2025, which management attributed to strong operational performance. This operational strength, necessary to manage complex programs like Sentinel and B-21, relies heavily on advanced digital capabilities to model, simulate, and manage production processes, helping to offset inflationary pressures on materials and labor.

Finance: draft 13-week cash view by Friday.

Northrop Grumman Corporation (NOC) - Canvas Business Model: Value Propositions

You're looking at the core promises Northrop Grumman Corporation makes to its customers, which are primarily the U.S. Department of Defense and international allies. These aren't abstract ideas; they are backed by multi-billion dollar contracts and specific performance metrics.

Strategic Deterrence: Delivering the U.S. nuclear triad's air and ground legs (B-21, Sentinel).

The value here is in providing the next generation of the nation's most critical deterrent capabilities. The B-21 Raider program, while facing initial hurdles, is moving into higher production lots. For instance, Northrop Grumman took a pre-tax loss provision of $477 million in the first quarter of 2025 related to the B-21 Low-Rate Initial Production (LRIP) options, which the company attributed to a process change to enable an accelerated production ramp. Congress provided $4.5 billion in July 2025 to further speed up B-21 production. The Air Force plans to acquire at least 100 B-21s. On the ground leg, the Sentinel program is a key driver for the Defense Systems segment, which saw a 4% increase in sales to $1.8 billion in the first quarter of 2025. The company is on track to receive a contract for the third LRIP lot and an advance procurement contract for the fifth lot in the fourth quarter of 2025.

Integrated Systems: Connecting disparate sensors and weapons into a single network (IBCS).

Northrop Grumman Corporation offers the value of true battlefield integration through systems like the Integrated Battle Command System (IBCS). This capability connects different sensors and effectors into a unified network. In the first quarter of 2025, IBCS secured significant new awards totaling $0.5 billion. Furthermore, a specific contract modification for IBCS hardware showed a running total obligation of $471,159,233 as of August 15, 2025. The system's reliability is underscored by its operational success, reporting a record of 32 for 32 in successful flight tests as of the third quarter 2025 earnings call. This ramp-up of integrated systems supports a projected fair value estimate of $667.21 per share in one late-2025 analysis.

Technological Superiority: Providing next-generation, classified, and stealth platforms.

This proposition is about delivering platforms that maintain a decisive technological edge. The Aeronautics Systems segment, which houses the B-21, generated sales of $3.1 billion in the third quarter of 2025. The company's overall financial health, reflected in a record backlog of $92.8 billion in the first quarter of 2025, is predicated on securing these high-value, next-generation programs. The company reaffirmed its 2025 sales guidance to be between $41.7 billion and $41.9 billion, showing confidence in its pipeline of classified work.

Mission Assurance: High-reliability systems for critical national security missions.

Mission assurance translates to systems that work when needed, which is non-negotiable for national security. The Mission Systems segment reported sales of $2.8 billion in the first quarter of 2025 and achieved a segment operating margin rate of 16.7% in the third quarter of 2025. The company returned nearly $800 million to shareholders through dividends and buybacks in Q1 2025, signaling financial stability to support long-term, high-reliability commitments.

Hypersonic Defense: Developing the Glide Phase Interceptor (GPI) for missile defense.

Countering hypersonic threats is a major value driver. Northrop Grumman's work on the Glide Phase Interceptor (GPI) saw a significant funding boost. A contract modification announced in late 2024 increased the total agreement value from $291.8 million to $832.8 million, an increase of $540.9 million. Specifically for the 2025 fiscal year, $24.6 million in research, development, testing, and evaluation funds were allocated to the project.

Here's a quick look at the scale of the key programs contributing to these value propositions based on Q3 2025 segment performance:

The company reaffirmed its 2025 free cash flow guidance to be between $3.05 billion and $3.35 billion, which you'll want to track against the operational costs of these major development efforts.

Northrop Grumman Corporation (NOC) - Canvas Business Model: Customer Relationships

You're looking at the core of Northrop Grumman Corporation's value capture: its relationships with the U.S. government and key international allies. This isn't a typical B2B dynamic; it's a deeply embedded, mission-critical partnership structure. Honestly, the numbers tell the story of this reliance.

Dedicated, long-term strategic partnerships with the U.S. government define the landscape. In 2024, the U.S. government was the primary customer, accounting for approximately 85.05% of Northrop Grumman Corporation's total revenue. To put that in perspective, sales from U.S. government contracts alone reached about $25 billion in 2024. This concentration means that relationship health is the single biggest driver of the company's financial stability. Even looking at the end of 2024, the company secured net awards of approximately $51 billion for the full year, contributing to a record backlog of $91.5 billion as of year-end 2024.

The nature of these engagements is long-term, which you can see when you look at the contract profile. In 2023, Northrop Grumman Corporation held $36.8 billion in total contract awards just from the U.S. Department of Defense. This wasn't a one-off; the company maintained 83 active major defense contracts with an average duration of 7.2 years back in 2023. The average contract value in 2024 was noted to be around $150 million.

Here's a quick look at how the customer base breaks down based on recent full-year data:

Direct, high-level engagement with military and political leadership is the mechanism that secures these massive, multi-year deals. You see this play out in the size of the awards. For example, in the third quarter of 2024, net awards for restricted programs (which inherently involve the highest levels of government oversight) totaled $2.7 billion. Furthermore, the company booked $900 million in the fourth quarter of 2024 specifically for the next iteration of Poland's Integrated Battle Command System (IBCS), showing direct engagement with allied military modernization plans.

The relationship is characterized by collaborative, multi-year contracts with embedded personnel on-site. This isn't just about delivering hardware; it's about sustainment and integration. Growth in the Aeronautics Systems segment in Q3 2024, for instance, was attributed to increased sustainment and modernization work on the E-2 fleet and higher Triton low rate initial production volume. The long-term nature of the work, with average contract durations often between 5-10 years, necessitates this close, embedded support structure.

Due to the nature of the work, the relationship is highly regulated and audited. Northrop Grumman Corporation's investment in compliance in 2024 was $150M. This is a necessary cost of doing business, as 95% of their contracts require this level of regulatory compliance. To manage this, the firm maintains a staff of over 1,200+ in regulatory compliance.

Finally, managing Foreign Military Sales (FMS) process management for international clients is a growing area. While the U.S. government dominates, international sales accounted for up to 20% of total revenue in 2024. You can see FMS activity in recent contract awards, such as a December 2025 contract involving FMS to Taiwan valued at $8,270,363, and a March 2025 payment related to the Royal Australian Air Force (RAAF) C-130J-30 program. The company explicitly guided that it expects its international business to accelerate and grow faster than U.S. sales in 2025.

Finance: draft 13-week cash view by Friday.

Northrop Grumman Corporation (NOC) - Canvas Business Model: Channels

You're looking at how Northrop Grumman Corporation moves its complex defense and aerospace products to its end-users, which is heavily concentrated in government channels. Honestly, for a company this size, the channel strategy is less about retail shelf space and more about securing multi-year, multi-billion dollar government contracts.

The primary channel is direct engagement with the U.S. government. This involves direct sales and contracting to the U.S. Department of Defense (DoD) and the intelligence community. In fiscal year 2024, this channel accounted for the vast majority of the company's top line.

Here's a quick look at the financial scale of Northrop Grumman Corporation's operations based on the 2024 fiscal year results:

Direct sales and contracting to the U.S. Department of Defense (DoD).

This is the core channel. The 87% of 2024 revenues derived from the U.S. federal government represents the direct contracting mechanism for major platforms like the B-21 Raider, F-35 components, and various space and mission systems programs. The company's total backlog reached a new record of $92.8 billion as of the first quarter of 2025, showing the strength of these long-term commitments.

Foreign Military Sales (FMS) via the U.S. government to allied nations.

The 12% international revenue share is largely channeled through the FMS process, where the U.S. government acts as the intermediary for foreign military customers. This channel is critical for programs like the E-2 Hawkeye and components for the F-35 Joint Strike Fighter delivered to allies. The company's total international sales in 2024 were approximately $4.92 billion.

Direct commercial sales to select international defense ministries.

While smaller than FMS, this channel exists for specific international customers outside the formal U.S. government FMS structure. This is embedded within the 12% international segment. For instance, the company delivered the first shipset for Australian EA-18G Growler in 2015, illustrating direct international engagement.

Dedicated field service and logistics support teams globally.

This channel is executed through the company's operational segments, particularly Defense Systems and Mission Systems, which support the deployed hardware. While a specific revenue percentage for only services isn't isolated here, the company's 2025 guidance anticipates continued organic sales growth, which includes sustainment work. The backlog of $92.8 billion in Q1 2025 includes future services and sustainment obligations tied to these platforms.

• The Aeronautics Systems division generated $12.03 billion in 2024 sales, much of which is tied to production and initial fielding support.
• The Space Systems segment recorded $11.73 billion in 2024 sales, requiring extensive post-delivery integration and support channels.
• The company returned $3.7 billion to shareholders in 2024 through dividends and repurchases, indicating cash flow generated from these large contract channels.

Northrop Grumman Corporation (NOC) - Canvas Business Model: Customer Segments

You're looking at the core of Northrop Grumman Corporation's revenue engine, and frankly, it's almost entirely government-centric. This isn't a company chasing consumer trends; it's built on multi-decade defense and space contracts. For context, Northrop Grumman posted total sales of $41.03 billion for fiscal year 2024.

The U.S. Government is the undisputed primary customer. In 2024, this segment accounted for 87% of the company's total sales. To be fair, that concentration is the nature of the prime defense contractor business, but it means their fortunes are tied directly to the federal budget cycle and geopolitical stability. The remaining 12% of 2024 revenues came from international sources.

The U.S. Air Force represents a massive chunk of that domestic spend, particularly through two generational programs. You've got the B-21 Raider and the Sentinel ICBM replacement program. Here's a quick look at the financial commitments we're seeing for these key platforms as of late 2025:

For the B-21 Raider, the Air Force plans to purchase at least 100 aircraft to replace the B-2 Spirit and B-1 Lancer fleets. Northrop Grumman has absorbed significant upfront costs, reporting losses exceeding $2 billion on the program as of April 2025, stemming partly from fixed-price clauses on early Low Rate Initial Production (LRIP) lots. Still, the company is negotiating for the third LRIP lot contract and an advance procurement contract for the fifth lot in the fourth quarter of 2025.

The Sentinel ICBM program, replacing the Minuteman III, is facing substantial cost growth, with projections now over $131 billion, an increase of at least 37% over the initial estimate, triggering a Nunn-McCurdy breach. The 2025 Air Force budget breakdown for Sentinel includes $61.6 billion for equipment procurement, $25.5 billion for research, and $8.7 billion for facilities. The Defense Systems segment, which handles Sentinel, saw Q3 2024 sales climb 2% to $2.1 billion, partly due to ramp-up on Sentinel.

The U.S. Space Force and NASA are also critical clients, primarily through the Space Systems business. Space Systems generated $11.73 billion in revenue in 2024. We saw a specific win in 2025 when Northrop Grumman secured a contract with the U.S. Space Force to test in-space satellite refueling technology. However, the segment's Q3 2024 revenue dropped about 3% to approximately $2.8 billion, which the company attributed to the winding down of work on restricted space and Next Generation Interceptor (NGI) programs.

For International Allies, the focus is on established platforms and new systems sold to NATO and Asia-Pacific defense ministries. While the specific dollar amount tied to international sales isn't broken out beyond the 12% of total 2024 revenue, programs like the E-2 Hawkeye and MQ-4C Triton are key export platforms. The Defense Systems business, which supports various ground and air defense modernization efforts, posted a 7% revenue increase in Q2 2024 to $1.5 billion, driven by programs like the Guided Multiple Launch Rocket System.

Finance: draft 13-week cash view by Friday.

Northrop Grumman Corporation (NOC) - Canvas Business Model: Cost Structure

You're looking at the core expenses that keep Northrop Grumman Corporation running, and honestly, it's dominated by the sheer scale and specialization of defense contracting. These aren't costs you can easily trim quarter-to-quarter; they are structural commitments to maintaining technological superiority and production capacity.

The most visible fixed costs stem from the need for specialized manufacturing facilities and the associated capital investment. This isn't just buying office equipment; it's tooling up for next-generation platforms. Over the past two fiscal years, Northrop Grumman has consistently allocated a significant portion of its top line to this area, reporting capital expenditures (CAPEX) at over 4% of sales over the last two years.

Here's a look at how that capital expenditure stacks up against sales for the last couple of full years and the recent quarters of 2025:

The company's commitment to future technology is also reflected in its research and development spending. Northrop Grumman has poured over $2.1 billion in IRAD (Independent Research and Development) over the past two years. To put that in context, their total R&D expenses for 2023 were reported at $3.2 billion.

You can't run a business this complex without a massive, specialized workforce. As of 2025, Northrop Grumman employs approximately 100,000 people. The cost structure must absorb significant labor expenses for this large pool of highly-skilled engineers and technical staff, which is a non-negotiable component of their cost base.

Still, fixed costs aren't the only pressure point; program execution risk hits the bottom line hard, especially on fixed-price contracts. The B-21 Raider program is a prime example of this risk materializing. In the first quarter of 2025, Northrop Grumman booked a pre-tax loss of $477 million on the B-21 LRIP (Low-Rate Initial Production) options. This charge was driven by higher manufacturing costs from a process change intended to accelerate production, plus rising material costs. That single quarterly charge pushed the total recognized losses on the B-21 program to more than $2 billion.

Finally, the day-to-day running of these programs involves substantial material and supply chain costs. These are for complex, long-lead-time components required for platforms like the B-21, Sentinel ICBM modernization, and various space systems. The B-21 loss itself cited increases in the projected cost and quantity of materials needed.

Here are the key cost drivers you need to track:

• - Capital Expenditures consistently running at over 4% of sales.
• - B-21 fixed-price contract loss in Q1 2025 totaled $477 million.
• - Total B-21 program losses now exceed $2 billion.
• - Over $2.1 billion invested in IRAD over the last two years.
• - Workforce size of approximately 100,000 employees as of 2025.

Finance: draft 13-week cash view by Friday.

Northrop Grumman Corporation (NOC) - Canvas Business Model: Revenue Streams

You're looking at the core engine driving Northrop Grumman Corporation's tens of billions in annual revenue, which is overwhelmingly tied to long-term government commitments. This predictability is the bedrock of their financial model.

The primary source of revenue comes from the U.S. Government contracts. For the fiscal year 2024, a massive 87% of Northrop Grumman Corporation's total sales were derived directly from the federal government of the United States, with international sources making up the remaining 12%. These contracts are structured across various types, including Cost-Plus, Fixed-Price, and Time & Materials agreements, providing a steady, though sometimes complex, flow of funding.

Looking ahead, the full-year 2025 sales outlook for Northrop Grumman Corporation has been revised to a range between $41.7 billion and $41.9 billion. This top-line expectation drives all profitability metrics for the year.

The revenue mix across the operating segments gives you a clearer picture of where the dollars are coming from. The Aeronautics Systems division, which develops platforms like the B-21 Raider, was a significant contributor in 2024, generating revenue that represented 27.52% of the total, or $12.03 Billion.

Here's a look at the segment revenue contributions based on 2024 figures, which inform the current revenue stream:

A key trend in 2025 is the growth trajectory of international business. International sales are expected to outpace U.S. growth in 2025. For instance, international sales grew 18% year-over-year in Q2 2025, and the overall international growth rate was reported at 32% in Q3 2025. This suggests a strategic shift or acceleration in foreign military sales supporting Northrop Grumman Corporation's revenue base.

Revenue streams also include the ongoing support for existing hardware. This is captured within the segment results, representing aftermarket services, maintenance, and modernization of existing platforms. For example, Mission Systems sales in Q2 2025 were driven by higher volume on marine systems and international ground-based radar programs, and Defense Systems saw growth from the Sentinel program and higher ammunition sales.

You can see the revenue flow by geography from 2024:

• U.S. Federal Government Revenue (2024): 87%.
• International Sources Revenue (2024): 12%.
• Q3 2025 International Growth Rate: 32%.
• Q2 2025 International Sales Growth (YoY): 18%.

The company's backlog remains a massive indicator of future revenue, hitting a record of $92.8 billion in Q1 2025.