Smudo (@Smudeo) su getquin

*Both at the all time high today*

With sales of over 39 billion dollars, Northrop Grummann $NOC (-0,09%) is a major global aerospace and defense technology company responsible for several critical components of America's defense and NASA's space program. The company develops complex platforms that last for decades, regardless of current events. The S&P 500-listed company is the primary supplier for the modernization of the United States' nuclear weapons systems.

The old B-2 Spirit stealth bomber model is to be replaced by the new B-21 Raider variant, and a new generation of intercontinental missiles is being developed as part of the Sentinel program. Both programs extend over several decades and promise stable revenues. Test flights with the B-21 are currently taking place and the handover is planned for the 2020s. The first operational Sentinel system should be fully operational by around 2029.

After several years of heavy investment in product development and capacity expansion, the end is gradually approaching. In the first half of the year, sales grew by 8% year-on-year to USD 20.4 billion, with a stable EBIT margin of 10.8%. The largest increases were recorded in the Aeronautics and Defense Systems segments. With an order backlog of USD 83 billion, CEO Kathy Warden expects sales of around USD 41 billion and earnings per share of between USD 24.90 and 25.30 for the 2024 financial year. If this is achieved, the 2024 P/E ratio of the share (USD 513.73; US6668071029) is currently

20The most recent example is the USD 1.3 billion contract that the Americans were able to land together with their joint venture partner Raytheon on August 30. This involves the production of around 50,000 Javelin missiles and more than 12,000 reusable command and control units.

The Javelin program is part of the "Missiles and Fire Control" segment, which generates around 17% of Group sales and recorded the highest growth rate in H1 2024 (+18.5% year-on-year). Overall, revenue increased by 11% to USD 35.3 billion in the period under review.

In terms of size, the "Aeronautics" segment is the most significant with a 40% share of sales. This includes the F-35 fighter jet, which is also very popular in Germany. According to media reports, the German government is currently discussing the procurement of a further tranche of eight F-35 jets for the German armed forces.

Lockheed $LMT (+0,94%) is continuously working on its flagship product; the first model with the latest technology was recently delivered. CEO Jim Taiclet expects a total of 75 - 110 F-35 jets to be delivered in FY 2024. The fruits of many years of development work should now be reaped in the coming years, which should gradually have a positive impact on profitability.

The forecast for the financial year envisages an EBIT margin of 10.4% (2023: 12.6%), with sales of 70.5 to 71.5 billion (2023: 67.6 billion dollars). The order backlog as at June 30 amounted to almost USD 160 bn, more than double the expected revenue.

Following the strong share price performance, the valuation has risen to 22 times the expected earnings per share for 2024.

I was introduced here several times about 12 months ago and decided to buy.

My thanks go to:

@7Trader
@Asgard19
@Der_Dividenden_Monteur

@Simpson and @Michael-official

who drew my attention to it.