for 2026 to 1.85 billion US dollars for the ramp-up of B-21 production.
Insights from the conference call on the business figures:
Northrop Grumman (NOC) Q1 2026 Management Assessment "First quarter organic sales were up
5% - an excellent start to the year and in line with our expectations for the full year," said Kathy Warden, Chairman and CEO.
She highlighted the agreements reached with customers "to accelerate the Sentinel program, increase the production rate of the
B-21 production rate, become a secondary supplier of solid rocket motors for several programs and increase our production rate for other programs."
Warden made the link between near-term demand and investment in production capacity: "In the last two years, we have opened over
20 new production facilities and added more than
2 million square feet of manufacturing space across the United States," and said the company has invested "more than
2 billion dollars" in solid rocket motor and ammunition capacity in recent years; she added: "Our production capacity for tactical solid rocket motors has already doubled, and we plan additional expansions that will be completed by
will be completed by 2027."
Commenting on the flagship programs, Warden explained that acceleration plans for Sentinel include a Milestone B decision later this year, first flight in 2027 and initial operational capability in the early 2030s.
2030s. She added that the
B-21 had received the order for Lot 4 (LRIP) in the first quarter and an agreement to increase the annual production rate by
25 %. She also highlighted the positive development in the area of missile defense: "Shortly after the end of the quarter, we received an order to accelerate the development of the glide-phase interceptor, which increased the total order value to
increased to 1.3 billion US dollars." "Orders totaled $9.8 billion in the first quarter, and we ended the quarter with an order backlog of
96 billion US dollars," said John Greene, Corporate Vice President & CFO, adding: "Sales in the first quarter amounted to
9.9 billion US dollars, an increase of
4% over the prior year," and "diluted earnings per share for the first quarter were
6.14 US dollars."
Management described the first quarter of 2026 as a demand-supported start to the year and reaffirmed 2026 revenue and cash flow guidance, while increasing 2026 capital spending to support the now finalized B-21 production ramp-up and accelerated Sentinel plans. Key investor-relevant information during the quarter focused on the details of the B-21 agreement (including an aircraft sale that shifted the revenue timing without changing expectations for production volume under the first production phase), the continued timelines for Sentinel (Milestone B in late 2026 and first flight in 2027) and the pressure on the space segment from the GEM 63XL profit adjustment. Added to this was the continued focus on converting international demand and munitions demand into contracted series production.