Northrop Grumman
Compare Northrop Grumman…Specialist in stealth aircraft, strategic systems, and space. B-21 Raider stealth bomber, Sentinel ICBM, GBI/NGI missile defense, classified imagery satellites.
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Northrop GrummanSpecialist in stealth aircraft, strategic systems, and space. B-21 Raider stealth bomber, Sentinel ICBM, GBI/NGI missile defense, classified imagery satellites.
| Year / Milestone | Status | Financial Impact |
|---|---|---|
| Oct 2015 | LRS-B contract awarded to Northrop (beat Boeing-Lockheed team) | Engineering & Manufacturing Development (EMD) contract; cost-plus-incentive-fee structure |
| Dec 2022 | B-21 public rollout at Palmdale CA Plant 42 | Strategic showcase event; first public viewing of the stealth bomber |
| Nov 2023 | First flight from Palmdale to Edwards AFB | Initial flight test program begins; flight-test airframes (T-1) and follow-on test aircraft |
| Dec 2023 | LRIP Lot 1 contract awarded (fixed-price) | First LRIP contract; fixed-price terms vs the EMD cost-plus structure; structural margin headwind |
| Q4 2023 - Q4 2024 | Multiple EAC charges related to B-21 LRIP | Cumulative ~$1.5B+ in pre-tax EAC charges absorbed by Northrop reflecting inflation-driven cost overruns on the fixed-price LRIP lots |
| 2025: Flight test expansion | Additional test aircraft enter flight envelope | Test program proceeding per planned cadence; T-2 + T-3 + T-4 aircraft in various test phases |
| 2027 target | First operational delivery to USAF Whiteman AFB MO | First Lot 1 aircraft delivered to USAF Air Force Global Strike Command; initial operating capability target ~2029 |
| Long-term outlook | ~100+ aircraft over multi-decade program | Estimated $200B+ total program value across LRIP + multiple full-rate production lots; Northrop's largest single revenue contributor through 2040+ |
| Editorial. Why B-21 matters | Strategic context | B-21 is the marquee test case of fixed-price contracting on major-platform DoD programs. The EAC charges absorbed in 2023-2024 reflect Northrop's risk-bearing role; the long-term question is whether Lot 2/3/4 negotiations restore margin or whether the program becomes the cautionary case for the DoD's fixed-price strategy |
Q1 2023-Q3 2025
2021-Q2-2026-Q1
2021-Q2-2026-Q1
2001-2025
$NOC
Specialist in stealth aircraft, strategic systems, and space. $41B FY2024 revenue. Lead contractor on B-21 Raider stealth bomber (production ramp 2025-2027), Sentinel ICBM (replaces Minuteman III; in Nunn-McCurdy breach review), GBI/NGI missile defense, James Webb successors. Strong space/satellite portfolio incl. classified imagery.
Key Milestones
Jack Northrop founds Northrop Aircraft in Hawthorne California; designs P-61 Black Widow night fighter and YB-49 flying wing. Grumman Aircraft (founded 1929 by Leroy Grumman) builds F4F Wildcat, F6F Hellcat, F-14 Tomcat.
B-2 Spirit stealth bomber program (Advanced Technology Bomber) awarded to Northrop; flying-wing design draws directly on Jack Northrop's 1940s YB-49.
B-2 Spirit first flight at Palmdale CA Jul 17 1989; revolutionary stealth bomber; production initially planned 132 aircraft, capped at 21 post-Cold War.
Northrop acquires Grumman Aircraft for $2.1B forming Northrop Grumman; combines stealth/bomber expertise with carrier-aircraft heritage.
B-2 Spirit stealth bomber enters operational service with USAF; production capped at 21 aircraft
Northrop Grumman acquires Litton Industries for $5.1B then Newport News Shipbuilding $2.6B same year; vertically integrates electronics/shipbuilding. Newport News spun off as part of HII 2011.
Acquires TRW for $7.8B; major space + electronics expansion adding satellite buses, ICBM ground systems, missile defense.
Wins KC-X aerial-refueling tanker contract (with EADS) over Boeing; protested and overturned 2008-2010; Boeing wins re-compete 2011 with KC-46.
Wins Long Range Strike Bomber (LRSB) contract; future B-21 Raider, defeats Boeing/LMT team
Acquires Orbital ATK for $7.8B; adds solid-rocket motors, satellites, ammunition (now Northrop Grumman Space Systems)
Wins Ground-Based Strategic Deterrent (Sentinel ICBM) EMD contract worth $13.3B sole-source after Boeing withdrew
Selected as IBCS (Integrated Air & Missile Defense Battle Command System) prime; enters Army full-rate production 2024: first true joint air-defense fire-control network.
B-21 Raider unveiled at Palmdale ceremony Dec 2 2022; first new US bomber in 30+ years; production planned 100+ aircraft at $700M+ unit cost.
Records $1.6B pre-tax charge on B-21 production-lot fixed-price contract; cost growth accepted to preserve program
B-21 Raider first flight at Edwards AFB Nov 10 2023; flight test campaign begins on schedule
Sentinel ICBM declared in critical Nunn-McCurdy breach Jan 18 2024; cost grows from $96B to $131B+ (37% over baseline) due to launch facility/silo civil works underestimation.
Wins Next Generation Interceptor (NGI) full development with $3.3B contract; replaces Boeing's GMD
Pentagon certifies Sentinel program continuation post-Nunn-McCurdy Jul 8 2024; restructures schedule slipping to 2030+ IOC. Cost cap rebaselined ~$141B.
B-21 enters Low Rate Initial Production (LRIP); first operational delivery to Ellsworth AFB targeted 2026-2027
GBI replacement: NGI critical design review milestone reached; first deployable interceptors targeted 2028
Backlog reaches $90B; B-21 production ramp + Sentinel restructured EMD + IBCS allied sales drive growth.
