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.