Northrop Grumman posts higher quarterly profit as geopolitical uncertainty fuels demand

This undated photo provided by Northrop Grumman Corp., shows a pre-production model of the F-35 Joint Strike Fighter. (AP Photo / Northrop Grumman, File)

Defence supplier Northrop Grumman posted higher fourth-quarter profit and revenue on Tuesday, helped by strong sales in its aeronautics business amid heightened geopolitical uncertainty.

Robust demand for arms, fueled by escalating tensions in the Middle East and the ongoing Russia-Ukraine conflict, has boosted sales for Northrop Grumman and other defence contractors.

Global tensions have also risen under the Trump administration, including the capture of the Venezuelan president and an aggressive bid to acquire Greenland, increasing strains in South America and creating uncertainty within the NATO alliance.

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Sales in Northrop’s aeronautics segment, which produces the B-21 Raider long-range strike aircraft and fuselages for Lockheed Martin’s F-35 aircraft, rose 18 per cent during the fourth quarter.

Falls Church, Virginia-based Northrop also saw strong fourth-quarter sales in its mission systems business, which makes communications and electronic warfare systems mainly for the U.S. defense and intelligence community.

Sales in the mission systems segment rose 10 per cent, largely due to a ramp-up in restricted airborne radar programs and strong demand for parts used in the F-35 aircraft.

Northrop’s defense and space segments sales rose seven per cent and five per cent, respectively, during the quarter.

However, its 2026 sales forecast of US$43.5 billion to $44 billion fell short of Wall Street estimates of $44.24 billion, as per LSEG-compiled data.

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Shares of the company were down two per cent in light premarket trading.

Delays in Trump’s Golden Dome initiative to set up a comprehensive homeland missile defence system have also deferred potential sales, as Northrop was expected to compete for contracts.

First announced in January 2025, the initiative has yet to meaningfully draw on the US$25 billion appropriated last summer, as officials continue to debate its space-based architecture.

The defense supplier posted a total revenue of $11.71 billion for the quarter ended Dec. 31, up about 10 per cent from a year ago.

Excluding items, its per-share profit was $7.23 in the quarter, compared with $6.39 last year.

(Reporting by Aishwarya Jain in Bengaluru; Editing by Tasim Zahid and Vijay Kishore)