Northrop Grumman Q1 2026: organic sales up 5%, $96B backlog, capex raised to $1.85B

Transcript intelligence

What changed

Compared with the prior quarter, capex guidance was raised to ~$1.85 billion for 2026 (from ~$1.65 billion); the B-21 production rate was increased 25% with a new LRIP award and $200 million of additional 2026 capex; Sentinel is targeting Milestone B this year with first flight in 2027; and a new $1.3 billion Glide Phase Interceptor contract was awarded. Q1 EPS and revenue both posted small beats of roughly +1.3%.

Guidance delta

Maintained. Full-year 2026 guidance was reaffirmed; 2026 capex guidance was raised to approximately $1.85 billion (from roughly $1.65 billion in the prior quarter) to fund capacity expansion.

Key takeaways

• Record ~$96 billion backlog provides more than two years of sales coverage
• Q1 organic sales rose 5%; EPS of $6.14 and revenue of $9.88B edged past estimates ($6.06 and $9.75B)
• B-21 production rate increased 25% with a new LRIP award and $200M of incremental 2026 capex
• 2026 capex guidance raised to ~$1.85 billion to fund capacity expansion
• Sentinel targeting Milestone B this year, first flight in 2027, and IOC in the early 2030s

Management priorities

• Scale B-21 production to meet demand and improve margins
• Achieve first flight of Sentinel in 2027 and progress toward IOC
• Expand solid-rocket-motor capacity and qualify for additional programs such as PAC-3
• Develop and field counter-drone solutions (FADC2, IBCS) and participate in the Golden Dome C2 initiative
• Fund capacity expansion with higher capex and continue Artemis space activities