Northrop Grumman reported solid QQ2 2025 results, underscoring the companyβs defensive positioning in a stable, government-led defense budget environment. Revenue reached $10.351 billion, up modestly YoY, with gross profit of $2.21 billion and a gross margin of 21.35%. Operating income was $1.425 billion, yielding an operating margin of 13.77%, while net income totaled $1.174 billion for an EPS of $8.17 (diluted $8.15).
The company generated $868 million of operating cash flow and $637 million of free cash flow, supporting capital allocation in the form of dividends ($332 million) and share repurchases ($411 million). Balance sheet stability is evident with total assets of $49.45 billion and total equity of $15.47 billion, though reported total debt of $17.52 billion results in a notable net debt position of roughly $15.62 billion. Liquidity remains adequate (current ratio 1.03, quick ratio 0.91), and valuation metrics imply a reasonable entry point given the quality of cash generation.
Overall, Northrop Grumman demonstrates resilient profitability and robust cash generation within a diversified defense portfolio, but investors should monitor leverage discipline, defense spending cycles, program execution risk, and any shifts in DoD procurement policies that could impact revenue visibility.