Northrop Grumman Reports Strong Sales, Increases Guidance

A 9% jump in sales to nearly $10 billion with a $400 million increase in 2023 sales guidance highlighted Northrop Grumman’s second quarter earnings report.

“Strong global demand for our products, increased supply chain deliveries and our continued success in hiring and retaining talent drove second quarter growth,” said Northrop Grumman chair, chief executive officer and president Kathy Warden, in a media release. “

Northrop Grumman employs more than 95,000 people, including more than 1,200 at its St. Johns County facility.

In a conference call with investors and analysts, Warden said supply-chain issues improved and operational efficiencies increased.

“We see signs of progress across our supply chain and we are seeing fewer new issues emerge,” she said.

On the labor front as well, Warden offered a positive outlook.

“Attrition rates are down to pre-pandemic levels,” she said. “Our focus now is on optimizing labor efficiency.”

Inflation is also a concern, Warden said.

“Inflation has been a challenge for our industry as well as others,” she said. “Overall, we anticipate these macroeconomic impacts have stabilized.”

One of the brightest spots in the earnings report came from the company’s space division.

“Space continues to lead the way with the second consecutive quarter of 17% sales growth,” said Northrop Grumman CFO Dave Keffer, in the earnings call. “Our space business continues to deliver.”

Keffer said overall the company had “a strong first half of the year” with a strong outlook moving forward.

“Our business strategy is working,” he said. “With growing global demand … we’re building long-term value for all our stakeholders.”