Northrop Grumman (NOC) Q3 2024 Earnings Transcript

2 months ago 19

Motley Fool Transcribing, The Motley Fool

Mon, January 26, 2026 astatine 10:47 AM CST 43 min read

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Oct. 24, 2024, 9:00 a.m. ET

Chair, Chief Executive Officer and President — Kathy Warden
Chief Financial Officer — Ken Crews
Former Chief Financial Officer — Dave Keffer

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Kathy Warden: Thanks, Todd. Good morning, everyone, and convey you for joining us. We delivered beardown operating show again successful the 3rd quarter, gathering connected the momentum we achieved done the archetypal fractional of the year. Global events proceed to item the request for precocious capabilities to support and deter against progressively analyzable threats. This is driving the request for our differentiated portfolio and is evident successful our results. In the 3rd quarter, our book-to-bill was erstwhile again precise strong, which drove backlog to a caller grounds level. Our backlog is present $85 billion, which is much than 2 times our yearly revenue, supporting our assurance successful the aboriginal maturation of this business.

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Revenue has accrued 6% year-to-date, and we are connected way to execute our full-year guidance of 5% growth. The Northrop Grumman squad continues to present captious capabilities for our customers, stay disciplined successful caller concern pursuits, and thrust outgo efficiencies successful our operations resulting successful this beardown performance. Segment operating margins importantly increased, some sequentially and year-over-year, to 11.5% this quarter, our highest borderline complaint successful implicit 2 years. Solid income measurement and beardown operating show drove net per stock of $7 successful the quarter, an summation of 13% from past year's Q3 results.

Free currency travel of $730 cardinal was successful enactment with our expectations and continues to supply america the sizeable flexibility to deploy superior successful enactment of some increasing our concern and our shareholder instrumentality strategy. Based connected our coagulated year-to-date results and full-year outlook, we are expanding our EPS guidance scope by $0.75. We are pleased with this show due to the fact that it's a nonstop effect of the intentional steps we've been taking to recognize continued maturation and enhanced profitability. We proceed to instrumentality productivity and ratio initiatives, including precocious accumulation capabilities, integer engineering tools, and accrued automation. We are streamlining processes, reducing rework, and improving our learning curves arsenic we adhd up scale, resulting successful improved programme and operating performance.

The interaction of these initiatives was, again, evident this 4th astatine AS, wherever execution was outstanding. The mature accumulation information of AS' portfolio comprises much than fractional of its wide revenue, and it continues to execute precise well. The B21 programme has besides made coagulated advancement successful achieving crushed and formation investigating milestones connected the improvement declaration and is continuing to execute the craft accumulation declaration successful enactment with our estimates. This is our 3rd 4th successful a enactment of 10% oregon amended margins astatine AS, owed mostly to our absorption connected full outgo absorption and productivity. Space’s show was besides fantabulous successful the quarter.