Northrop Grumman Q2 2026 Earnings Call: Complete Transcript

Northrop Grumman (NYSE: NOC ) held its second-quarter earnings conference call on Tuesday.

Below is the complete transcript from the call.

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View the webcast at Watch the full earnings call below: Summary Northrop Grumman reported strong Q2 2026 results with $20 billion in net awards, a book-to-bill ratio of 1.84, and a record-high backlog of $105 billion, supporting a positive growth outlook.

Sales increased by 5% across all segments; however, operating margins decreased due to negative EAC adjustments in the Space and Defense Systems segments.

The company raised its full-year financial guidance for 2026, projecting sales of $44 billion and an EPS increase by $1.20, driven by robust bookings and expected accelerated sales growth.

Strategic initiatives include increased investment in advanced factories, progress in tactical missile programs, and significant international opportunities, such as Triton aircraft orders by NATO and missile defense systems in the Middle East.

Management emphasized the importance of aligning with U.S. government priorities, with strong bipartisan support for defense budgets, and noted progress on key programs like the Sentinel missile and B-21 bomber.

Full Transcript Josh, Operator Good day, ladies and gentlemen, and welcome to Northrop Grumman second quarter 2026 conference call.

Today's call is being recorded.

My name is Josh, and I will be your operator today.

At this time, all participants are in a listen-only mode.

I would now like to turn the call over to your host, Mr.

Adam Barr, head of investor relations.

Mr.

Barr, please proceed.

Adam Barr, Head of Investor Relations Good morning and welcome to Northrop Grumman's second quarter 2026 conference call.

Before we begin, please note that matters discussed on today's call, including guidance and outlooks for 2026 and beyond, reflect the company's judgment based on information available at the time of this call.

They constitute forward-looking statements under the safe harbor provisions of federal securities laws.

Forward-looking statements involve risks and uncertainties, including those noted in today's press release and our SEC filings, which may cause actual company results to differ materially.

Today's call will also include non-GAAP financial measures which are reconciled to our GAAP results in the earnings release.

Additionally, we refer to a presentation that has been posted to our investor relations website.

Joining us on the call today are Kathy Warden, our chair, CEO and President, and John Green, our CFO.

With that, I'll now turn the call over to Kathy.

Kathy Warden, Chair, Chief Executive Officer and President Thanks, Adam.

Good morning everyone, and thank you for joining us on our second quarter 2026 earnings call.

As we celebrate America's 250th birthday, we are reminded of the importance of our work in support of preserving freedom and protecting our way of life.

It was a moment of pride for our Northrop Grumman team when the B-2 flew over our nation's capital on July 4th.

A symbol of American strength and ingenuity, it was also a powerful reminder that many of our technologies have transformed the aerospace and defense industry.

From the world's fastest microchip and the James Webb Space Telescope to our signature flying wing technology that epitomizes the B-2 and B-21 stealth bombers.

Today, we operate with a sense of urgency to get these technologies into the hands of our customers with the quality they depend on and the speed to meet today's dynamic threat environment.

Our Northrop Grumman team is embracing the call to action from our nation's leadership.

We are partnering with our customers to more rapidly develop and deliver the next generation of capabilities while scaling and investing in advanced factories to increase production rates and volumes.

We are fully aligned with the U.S. government priorities and see significant opportunity and increased demand for our portfolio.

There is bipartisan support for defense investment to maintain our nation's competitive edge.