Newport News, Virginia – Northrop Grumman Corporation provided insights into its financial performance and strategic outlook at Morgan Stanley’s 12th Annual Laguna Conference held on September 12, 2024. Kathy Warden, the President and CEO of Northrop Grumman, joined analyst Kristine Liwag for a discussion on the company’s trajectory and key priorities for the future.

During the conference call, Warden highlighted Northrop Grumman’s commitment to sustainably growing its business and delivering strong financial results. The company reported high single-digit growth in its top-line in the first half of the year, projecting a 5% growth for the year. With a backlog of $83 billion, up by 30% since 2019, Northrop Grumman is focused on expanding its margin rates and increasing earnings per share through a combination of margin expansion and share count reduction.

One of the key areas of focus for Northrop Grumman is its international sales growth, which has seen significant progress in recent years. With a diversified portfolio aligned with both US and international programs, the company is strategically positioned to capitalize on opportunities in emerging markets. Warden emphasized the importance of continually enhancing the company’s technological capabilities to meet the evolving needs of its customers worldwide.

Warden also discussed the company’s key programs, such as the B-21 and Sentinel, highlighting their importance while noting that they constitute only a portion of Northrop Grumman’s overall sales. She underscored the resilience of the company’s portfolio, with 75% of its business supporting critical missions in areas like space modernization, communication, and surveillance.

Looking ahead, Northrop Grumman is focused on margin expansion and efficient capital deployment to drive sustainable growth. The company is committed to returning value to shareholders through initiatives like share repurchases and dividend increases, while also prioritizing investments in technology and innovation to maintain its competitive edge in the aerospace and defense industry.

In conclusion, Warden emphasized the company’s dedication to advancing global security and supporting the missions of the US and its allies. By staying at the forefront of technology and strategy, Northrop Grumman aims to continue delivering impactful solutions that contribute to a safer and more secure world for all.