Northrop Grumman (0K92.L) Q1 2025 Earnings Report

Northrop Grumman Corporation reported Q1 2025 results reflecting a solid but pressured topline and margin profile within a challenging funding and operating environment for defense contractors. Revenue stood at $9.468 billion, down 6.56% year-over-year and 11.40% quarter-over-quarter, with gross profit of $1.58 billion and a gross margin of approximately 16.7%. Operating income was $573 million and net income $481 million, translating to an operating margin of about 6.05% and a net margin near 5.08% for the quarter. Diluted earnings per share were $3.32–$3.33, with 144.6 million weighted-average shares outstanding. The quarter also featured negative free cash flow and a notable deterioration in working capital dynamics, culminating in a negative operating cash flow of about $1.565 billion and free cash flow of roughly $(1.821) billion. On the balance sheet, total assets were $48.47 billion and total liabilities $33.48 billion, yielding stockholders’ equity of about $14.98 billion. Net debt stood at roughly $14.94 billion, with cash and cash equivalents of $1.685 billion and total debt of $16.626 billion. Liquidity metrics remained modest (current ratio ~0.95, quick ratio ~0.84, cash ratio ~0.12), while profitability and cash generation highlighted the impact of working capital movements and a high-capital expenditure cadence. Management commentary is not included in the provided data; no earnings call transcript was supplied. Investors should consider the defense-budget backdrop, project execution risk, and working-capital efficiency as key drivers of near-term performance and longer-term resilience.