Northrop Grumman’s Q1 report bombs, stock tumbles
Aerospace and defense giant Northrop Grumman, a “prime” provider of aircraft, weaponry, and military technology to the US government, plunged in early trading Tuesday after reporting poor Q1 earnings and axing its full-year outlook for earnings per share. It’s the worst performer in the S&P 500 as of 10:50 a.m. ET.
The company attributed the miss in part to a surge in manufacturing costs related to a ramp-up of production in the B-21 Raider stealth bomber. The company also cut its 2025 EPS guidance to a range of $24.95 to $25.35 from its prior outlook of $27.85 to $28.25.
But other major defense contractors — including Halliburton, RTX, and Lockheed Martin — are also down as investors seem to weigh the pressure the Pentagon faces from Tesla CEO Elon Musk’s effort to slash the federal government on behalf of the White House. As part of their earnings conference call, Northrop Grumman executives noted delays in getting contracts awarded for aircraft, space, and communications technology, which has slowed the company’s sales growth in Q1.
But other major defense contractors — including Halliburton, RTX, and Lockheed Martin — are also down as investors seem to weigh the pressure the Pentagon faces from Tesla CEO Elon Musk’s effort to slash the federal government on behalf of the White House. As part of their earnings conference call, Northrop Grumman executives noted delays in getting contracts awarded for aircraft, space, and communications technology, which has slowed the company’s sales growth in Q1.
