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Northrop posts quarterly profit vs year-ago loss on surge in military equipment demand
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Northrop posts quarterly profit vs year-ago loss on surge in military equipment demand
Jan 30, 2025 4:10 AM

Jan 30 (Reuters) - U.S. defense company Northrop Grumman ( NOC )

posted a quarterly profit on Thursday, from a year-ago

loss, as headwinds from its B-21 Raider stealth bomber program

eased and rising geopolitical tensions stoked demand for its

military equipment.

The ongoing conflicts in the Middle East and the

Russia-Ukraine war have increased demand for arms across the

world and has benefited U.S. defense contractors.

However, a rise in costs owing to a slower recovery in

pandemic-related supply chain snags have dented margins for

companies in the sector.

Northrop expects sales in 2025 to be between $42 billion and

$42.5 billion, slightly short of analysts' average estimate of

$42.8 billion according to data compiled by LSEG.

It expects an adjusted per-share profit of between $27.85

and $28.25 for the year, the midpoint of which is in line with

expectations.

Military equipment demand is expected to remain strong as

there is likely to be increased defense spending under U.S.

President Donald Trump, but investor sentiment has been clouded

by potential budget cuts under the newly formed Department of

Government Efficiency headed by billionaire Elon Musk.

The company, which makes the nuclear-capable B-21 Raider

stealth bomber, posted fourth-quarter sales of $10.69 billion,

compared with $10.64 billion a year earlier.

Northrop's adjusted per-share profit for the quarter ended

Dec. 31 was $6.39. It posted a loss of $1.45 a year earlier as

it booked losses related to its B21 Raider program.

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