NOC NORTHROP GRUMMAN CORP /DE/

Overview and Growth

NORTHROP GRUMMAN CORP /DE/ generated $41.95B of revenue in fiscal 2025, with net income of $4.18B and an operating cash inflow of $4.76B. At $41.95B, the top line establishes the operating scale supporting the company’s profit and cash-flow profile. The top line expanded 2.2% from $41.03B in fiscal 2024, increasing the company’s operating scale. The company reported diluted EPS of $29.08, adding a shareholder-level measure to the absolute income figures considered below. Against diluted EPS of $28.34 in fiscal 2024, the current result was 2.6% higher. Revenue equaled 0.82x of total assets, indicating how much reported top-line activity the company produced relative to its period-end asset base.

Profitability

Operations produced $4.51B of income after the reported operating expense base, before the remaining non-operating and tax effects. The operating result equaled 10.8% of revenue, placing the absolute operating-income figure in the context of the company’s sales base. Net income came to $4.18B, completing the progression from revenue through gross and operating profitability to the final reported result. Net margin was 10.0%, meaning that this portion of revenue remained as net income after all recognized expenses. Pretax income was $5.07B, isolating the reported earnings outcome before the income-tax provision recognized for the fiscal year. Measured against revenue, pretax income equaled 12.1%, adding a pre-tax profitability layer between revenue and net income. The reported income-tax provision was $886.00M, the amount recognized between pretax income and the final net-income result. Relative to pretax income, the tax provision measured 17.5%, quantifying the portion of pre-tax earnings paid in income tax. The relationship between net income and period-end equity was 25.1%, indicating the profitability achieved on book capital.

Liquidity and Capital Structure

At period end, the $51.38B asset base was financed through $34.70B of liabilities and $16.67B of equity. Current assets were $15.29B against $13.88B of current liabilities, framing the resources and obligations classified within the near-term balance-sheet horizon. Current assets covered current liabilities by 1.1x, leaving a positive buffer for near-term obligations. The company held $4.40B in cash and equivalents, a narrower liquidity measure than total current assets. The cash balance equaled 31.7% of current liabilities, showing how much near-term coverage came from cash alone. Total debt was $15.70B, establishing the amount of borrowing carried within the company’s capital structure. The debt-to-equity relationship was 0.94x, showing how much debt the company carried for each unit of book equity. Relative to total assets, debt measured 30.6%, showing how much of the asset base was matched by borrowing. Liabilities represented 67.5% of total assets, quantifying the liability-funded share of the company’s resource base. Measured against total assets, cash and equivalents represented 8.6%, a balance-sheet composition measure rather than a liquidity forecast. The asset base changed 4.1% from $49.36B in fiscal 2024, leaving current total assets higher year over year.

Cash Flow and Earnings Quality

Operating activities produced a cash inflow of $4.76B, giving the cash-flow counterpart to the accrual-based profit measures reported for the year. Against net income, operating cash flow measured 1.14x, showing the relationship between accrual earnings and operating cash. Capital expenditures used $1.45B, identifying the reported investment outflow deducted from operating cash flow in the free-cash-flow calculation. Capital spending absorbed 30.5% of operating cash flow, quantifying the share of cash from operations directed to investment. Free cash flow came to $3.31B, leaving a positive amount after capital expenditures. Free cash flow represented 7.9% of revenue, linking post-investment cash generation with the company’s operating scale. Free cash flow equaled 6.4% of total assets, relating post-investment cash generation to the company’s resource base.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Oct 21, 2026.