Investment

• Northrop Grumman’s Space Systems segment is expected to post a 24.3% year-over-year revenue decline in Q2 2025 due to reduced activity in restricted space programs, Commercial Resupply Services, and satellite work for the Space Development Agency. This underperformance contrasts with growth in other segments and may weigh on the company’s overall results.

• NASA’s Jet Propulsion Lab is reportedly attempting to sell off several Earth science satellites (some already launched, others like GLIMR still awaiting deployment) amid deep budget cuts proposed by the Trump administration for FY2026. The move signals broader concerns over the future of NASA’s climate and environmental monitoring efforts, as JPL seeks government or private buyers to salvage programs previously targeted for termination.

• Firefly Aerospace has filed for an initial public offering (IPO) and plans to list on the Nasdaq under the ticker symbol “FLY.” The Texas-based space and defense tech company has not yet disclosed the number of shares or price range but is moving toward public market entry with top-tier underwriters including Goldman Sachs and J.P. Morgan.

Partnerships

• Viasat, in collaboration with SSTL and MDA Space, is leading UK efforts on ESA’s Moonlight program to develop a lunar communications satellite system, aiming for initial capability by 2028. The system will serve as a “data highway” between Earth and the Moon, enabling future lunar exploration, space tourism, and industrial activity, while positioning the UK as a key player in the emerging lunar economy.

• Australia’s Defence Department has partnered with Optus and leading universities to co-develop a LEO satellite equipped with experimental communications and research payloads, aiming to strengthen sovereign space capabilities. Backed by $4 million in Defence funding and additional investment through the iLAuNCH Trailblazer program, the mission will advance optical and radio-frequency communications and is set to launch in 2028.

• Astroscale U.S. has signed a Space Act Agreement with NASA’s Goddard Space Flight Center to test its Refueler spacecraft’s rendezvous and docking capabilities ahead of refueling missions for U.S. DOD satellites in GEO. The partnership leverages GSFC’s advanced in-space servicing facilities to validate Astroscale’s RPOD technology in a high-fidelity environment.

Applications

• Expedition 73 astronauts aboard the ISS conducted a range of health and systems maintenance tasks, including heart scans, blood pressure monitoring, and wearable sensor tests to study microgravity’s effects on cardiovascular and respiratory systems. The crew also maintained critical life support and scientific equipment, while supporting plant biology and international collaboration experiments.

• ESA and UK-based Frazer-Nash have launched INVICTUS, a hypersonic flight research program aiming to develop a reusable, Mach 5-capable aerospace vehicle with horizontal launch capabilities. Backed by ESA and the UK Space Agency, the project will test air-breathing, hydrogen-fueled propulsion systems and advanced cooling tech like SABRE, with the goal of enabling future spaceplanes and dual-use mobility systems.

• Researchers have demonstrated a new in-situ resource utilization (ISRU) technology that extracts water from lunar soil and uses it to convert CO₂ into oxygen and fuel precursors. While still in early stages, the integrated photothermal system could reduce the cost and logistical complexity of transporting water and fuel from Earth, making it a high-impact application for future commercial lunar infrastructure and deep space missions.

Space Insider is the go-to intelligence platform for decision-makers seeking to invest in space, partner in space, or apply space technology. By contextualizing this information through trend analysis and structured content, we help our audience stay ahead in a rapidly evolving market. Want to see how our data can work for you? Let’s talk.

For the latest data and trends delivered directly to your inbox, subscribe to our newsletter.

• Northrop Grumman’s Q4 sales remained flat at $10.69 billion, missing estimates, as space revenue declined 13% due to restricted space programs and the NGI wind-down.
• Despite weak revenue growth, the company improved profitability, with operating income rebounding to $1.19 billion and operating margins rising to 10.2%.
• For 2025, Northrop expects up to $42.5 billion in sales, with space revenue projected at $11 billion, while shares fell 1.43% after the earnings report.

Northrop Grumman’s space business declined in the fourth quarter as overall sales remained flat, while stronger margins and cash flow bolstered the company’s financials, according to the company’s Q4 2024 and end-of-year report.

The aerospace and defense contractor reported $2.71 billion in fourth-quarter revenue for its Space Systems unit, a 13% year-over-year decline. The drop was tied to a $231 million reduction from restricted space programs and the wind-down of the Next Generation Interceptor (NGI) program, a missile defense initiative. The weakness in space offset growth in the company’s aeronautics and defense businesses.

Overall, Northrop reported fourth-quarter sales of $10.69 billion, missing Wall Street estimates of $11.01 billion. Adjusted earnings per share were $6.39, slightly above the consensus of $6.35.

Space is a growing focus for Northrop, which builds satellites, launch vehicles, and missile defense systems. Its space portfolio includes contracts with NASA, the U.S. Space Force, and commercial satellite operators. The fourth-quarter decline follows years of expansion in the segment, which has been a key contributor to Northrop’s backlog.

The company ended the quarter with a $91.5 billion backlog, reflecting new contract awards.

“Our team had another outstanding year equipping the U.S. and our allies with the advanced technologies they need to lead globally and maintain peace through strength,” said Kathy Warden, chair, chief executive officer and president. “Our financial results and new record backlog reflect the relevance of our products and the importance of our work.”

Profitability and Cash Flow Improve

Despite weak top-line growth, Northrop improved its profitability. Operating income for the quarter was $1.19 billion, rebounding from a $383 million loss in the same period last year. The company’s overall operating margin expanded to 10.2%, compared to a negative 3.7% a year ago.

The company also reported stronger cash flow. Fourth-quarter operating cash flow rose 6%, while free cash flow increased 8%. For the full year, operating cash flow grew 13%, with free cash flow up 25%, aided by lower tax payments and higher earnings.

Warden emphasized the company’s long-term financial strength.

“Over the last five years our sales have grown 30% organically and our free cash flow expanded 25% in 2024. Our guidance anticipates continued top line growth, margin expansion, and double digit cash flow growth,” she said. “Northrop Grumman remains committed to leading the way in technology innovation for national security.”

2025 Outlook: Modest Growth Ahead

For 2025, Northrop expects total sales between $42 billion and $42.5 billion, slightly below analyst expectations of $42.8 billion. Adjusted earnings per share are projected to be between $27.85 and $28.25.

The company forecasts space sales of about $11 billion for the year, indicating a recovery but still lagging behind its other business segments. Aeronautics Systems, which includes military aircraft, is expected to generate around $13 billion in sales, while Defense Systems and Mission Systems are projected at roughly $8 billion and $12 billion, respectively.

Northrop’s stock declined 1.43% to $474.63 in afternoon trading Thursday following the earnings release.

• The U.S. Space Force has extended Northrop Grumman’s contract by $1.8 billion, bringing the total value to over $4.1 billion.
• This phase includes building, launching, and transitioning two polar-orbiting satellites into operation.
• The first satellite launch is scheduled for 2028, with full operational capacity expected by 2031.

The U.S. Space Force announced it has awarded Northrop Grumman an additional $1.8 billion to continue work on the Next-Generation Overhead Persistent Infrared (Next-Gen OPIR) program, bringing the total contract value to more than $4.1 billion. This phase includes building, launching, and transitioning two polar-orbiting satellites into operation. These satellites are critical for missile detection, particularly for threats in the Northern Hemisphere, where monitoring is most difficult.

The initial contract, worth $2.2 billion, was awarded by the U.S. Air Force Space and Missile Systems Center to develop these satellites as part of the broader effort to improve missile defense. The satellites will be equipped with advanced infrared sensors capable of detecting both ballistic and hypersonic missile threats. Key suppliers involved in the project include Powell Electronics and Houston Precision Fasteners, among others.

The satellites will operate in highly elliptical orbits, providing consistent coverage of the Northern Hemisphere. The first satellite launch is scheduled for 2028, with full operational capacity expected by 2031. Northrop Grumman is incorporating advanced resilience features into the system to ensure it can withstand counter-space and cyber threats​

Image credit: Northrop Grumman

• The U.S. Space Force’s Space Systems Command has awarded Northrop Grumman a contract for the second of three planned Deep Space Advanced Radar Capability sites.
• The DARC initiative is driven by a trilateral partnership involving the United States, the United Kingdom, and Australia. Its aim is to secure one of the most critical domains for future security.
• The first DARC site is under construction in Australia, while the new contract marks the beginning of development for the second site in the United Kingdom.

The U.S. Space Force’s (USSF) Space Systems Command (SSC) announced it has awarded Northrop Grumman a contract for the second Deep Space Advanced Radar Capability (DARC) site. DARC plays a crucial role in tracking objects in geosynchronous orbit, contributing to space domain awareness for the U.S. and its allies.

DARC technology detects and tracks small space objects and satellites with high precision, providing valuable orbital information. This capability becomes increasingly important as space debris and objects in Earth’s orbit multiply. The system also identifies potential adversarial threats that could disrupt civil and military space services, underscoring its importance to national defense.

The DARC initiative is driven by a trilateral partnership involving the United States, the United Kingdom, and Australia. This collaboration aims to achieve more than any single nation could accomplish alone in securing one of the most critical domains for future security. The first DARC site is under construction in Australia, while the new contract marks the beginning of development for the second site in the United Kingdom.

Image credit: Northrop Grumman

• Northrop Grumman has secured the Deep-Space Advanced Radar Capability (DARC) Site 2 contract from the U.S. Space Force.
• This contract adds a second radar site in the United Kingdom, enhancing DARC’s role as one of the leading systems for tracking objects in deep space. This follows the earlier award of DARC Site 1.
• Pablo Pezzimenti, vice president of integrated national systems at Northrop Grumman, noted that the DARC Site 2 award enhances the company’s support for the U.S. Space Force’s space domain awareness capabilities.

Northrop Grumman announced it has secured the Deep-Space Advanced Radar Capability (DARC) Site 2 contract from the U.S. Space Force. This contract adds a second radar site in the United Kingdom, enhancing DARC’s role as one of the leading systems for tracking objects in deep space. This follows the earlier award of DARC Site 1.

DARC represents a next-generation ground system designed to monitor objects in geosynchronous orbit, about 22,000 miles above the equator. The system operates around the clock, in all weather conditions, providing comprehensive global coverage. This capability is vital for protecting critical satellites belonging to the U.S. and its allies.

DARC will operate in collaboration with partners from the United States, Australia, and the United Kingdom, extending beyond what any single nation could achieve alone. Traditional space domain awareness systems are limited by their dependence on clear skies and nighttime conditions. DARC, however, offers continuous monitoring, making it more difficult for adversaries to catch the system off guard.

Pablo Pezzimenti, vice president of integrated national systems at Northrop Grumman, noted that the DARC Site 2 award enhances the company’s support for the U.S. Space Force’s space domain awareness capabilities. He emphasized the importance of achieving global coverage of deep space for the security of the U.S. and its allies.

Image credit: Northrup Grumman

• Northrop Grumman’s 20th Commercial Resupply Services mission (NG-20) launched from Space Launch Complex 40 at Cape Canaveral Space Force Station in Florida on Tuesday, January 30, 2024.
• The NG-20 Cygnus spacecraft carried more than 900 pounds of supplies, research, and technology demonstrations.
• The Northrop Grumman Cygnus spacecraft has been contracted through NASA and will launch atop a SpaceX Falcon 9 rocket.
• Image credit: SpaceX

Northrop Grumman’s 20th Commercial Resupply Services mission (NG-20) marked a historic moment as a Northrop Grumman Cygnus spacecraft launched atop a SpaceX Falcon 9 rocket. The mission, contracted through NASA, launched from Space Launch Complex 40 at Cape Canaveral Space Force Station in Florida on Tuesday, January 30, 2024, showcasing over 20 payloads sponsored by the International Space Station (ISS) National Laboratory.

The NG-20 Cygnus spacecraft, named SS Patricia “Patty” Hilliard Robertson in honor of the late NASA astronaut, will carry more than 900 pounds of supplies, research, and technology demonstrations. Among the highlights are:

Revolutionary Tissue Chip Study

Funded by the U.S. National Science Foundation, a groundbreaking study by the University of Connecticut will test a nanoparticle therapeutic to treat degenerative joint diseases on Earth.

Innovative Artificial Retina Manufacturing

Biotechnology startup LambdaVision aims to explore the layer-by-layer manufacturing of artificial retinas in microgravity using a powdered form of the protein bacteriorhodopsin. Success could lead to cost-effective mass reduction for materials transported to the space station.

Spaceborne Computing Advances

Hewlett Packard Enterprise (HPE) will test an updated version of the HPE Spaceborne Computer-2, potentially streamlining space-based research with quicker in-orbit data processing.

Microgravity-Enhanced Optical Fiber Production

Flawless Photonics, a leading optical fiber manufacturing company, will leverage microgravity to test its ZBLAN manufacturing platform, aiming to eliminate gravity-induced defects and enhance fiber performance for advanced laser systems and telecommunications devices.

Efficient Space Robotics

GITAI, a space robotics startup, will evaluate the efficiency of its dexterous robotic arms in the space environment, demonstrating extravehicular robotic systems’ capabilities in performing common crew activities and tasks.

The NG-20 mission exemplifies the ISS National Laboratory’s commitment to fostering innovation and advancing space-based inquiries.

If you found this article to be informative, you can explore more current space industry news, exclusives, interviews, and podcasts.

• Northrop Grumman’s board of directors has authorized an additional US $2.5 billion for the repurchase of the company’s common stock, increasing the outstanding authorized amount to approximately US $3.8 billion.
• Share repurchases will take place from time to time, subject to market conditions and management’s discretion, in the open market or in privately negotiated transactions.

PRESS RELEASE — Falls Church, Virginia / December 6, 2023 — Northrop Grumman Corporation (NYSE: NOC) announced today that its board of directors has authorized an additional $2.5 billion for the repurchase of the company’s common stock, increasing the outstanding authorized amount to approximately $3.8 billion. Share repurchases will take place from time to time, subject to market conditions and management’s discretion, in the open market or in privately negotiated transactions.

Northrop Grumman is a leading global aerospace and defense technology company. Our pioneering solutions equip our customers with the capabilities they need to connect and protect the world, and push the boundaries of human exploration across the universe. Driven by a shared purpose to solve our customers’ toughest problems, our employees define possible every day.

Note: Statements in this press release contain or may contain statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “will,” “expect,” “anticipate,” “intend,” “may,” “could,” “should,” “plan,” “project,” “forecast,” “believe,” “estimate,” “guidance,” “outlook,” “trends,” “goals” and similar expressions generally identify these forward-looking statements. These forward-looking statements speak only as of the date when made, and the Company undertakes no obligation to publicly update or revise any forward-looking statements after the date of this release, except as required by applicable law. Forward-looking statements are not guarantees of future performance and inherently involve a wide range of risks and uncertainties that are difficult to predict. A discussion of these risks and uncertainties is contained in the Company’s filings with the Securities and Exchange Commission.

SOURCE: Northrop Grumman

Featured image: Credit: Northrop Grumman

If you found this article to be informative, you can explore more current space industry news, exclusives, interviews, and podcasts.