WASHINGTON — Northrop Grumman on Thursday reported sales in its most up-to-date quarter grew 9%, buoyed by increases in all 4 of its sectors.
The corporate recorded nearly $9.8 billion in sales for the third quarter of 2023, up from nearly $9 billion through the same period a yr earlier. That included 11% growth in its space division, 9% in aeronautics and 6% in its defense sector.
Northrop Grumman also reported quarterly profit of $937 million, up 2% from the prior yr.
Northrop Grumman chief executive Kathy Warden said in a call with analysts Thursday the corporate now has a record-high backlog of $84 billion.
And Warden highlighted Northrop Grumman’s win of a $705 million Air Force contract to construct a stand-in attack weapon, or SiAW, for the F-35. This missile can be an air-to-ground weapon intended to strike enemies’ mobile air defense targets.
Northrop said it plans to construct on its experience creating the Advanced Anti-Radiation Guided Missile-Prolonged Range, or AARGM-ER, and integrating it onto the F-35 because it develops the SiAW.
Dave Keffer, Northrop Grumman’s chief financial officer, said on the decision that aeronautics growth stemmed from higher volume in manned aircraft programs, similar to a $1.3 billion award for the E-2 Hawkeye, and $3.6 billion in contracts for classified programs. Northrop’s defense growth was driven by higher volume in programs including the Hypersonic Attack Cruise Missile, the Integrated Air and Missile Defense Battle Command System and the Guided Multiple Launch Rocket System.
Keffer said the corporate still anticipates receiving a low-rate initial production contract for the B-21 from the Air Force by the top of 2023. This contract would likely come after the bomber’s first flight this yr, he said.
Northrop Grumman’s comments got here a day after the Air Force confirmed the primary B-21 has begun taxi tests on the service’s Plant 42 facility in Palmdale, California, which is a key step before the primary flight can happen.
Air Force officials haven’t said whether or not they expect to award an LRIP contract this yr. Warden said budget turmoil on Capitol Hill wouldn’t affect the B-21′s first flight or the timing of its LRIP contract.
She cautioned the B-21 will not be prone to be profitable at first, reiterating her previous warning in January that a lack of as much as $1.2 billion on the LRIP contract is feasible. But she said Northrop expects the B-21 to contribute to future growth.
“We’re planning at a zero profitability” on the B-21 for now, Warden said. “But we have now to perform, and we’re working hard to be certain that plan is what we achieve.”
Stephen Losey is the air warfare reporter for Defense News. He previously covered leadership and personnel issues at Air Force Times, and the Pentagon, special operations and air warfare at Military.com. He has traveled to the Middle East to cover U.S. Air Force operations.