Despite a second-quarter sales decrease, Northrop Grumman’s (NYSE: NOC) Space Systems saw promising growth, according to the company’s latest financial report.
Northrop Grumman reported a $350 million decrease in sales across its aeronautics systems, defense systems, and mission systems, but this was partially offset by an 8 percent increase in its space systems segment.
“Northrop Grumman’s strategy to provide differentiated solutions in our customers’ highest priority areas is delivering results,” said Northrop Grumman CEO Kathy Warden. “In the second quarter, we had outstanding bookings and backlog growth, and strong segment operating margins. Demand for Northrop Grumman products and our operational performance remain strong. We are affirming our full year guidance, as we see the tight labor market, that has impacted our growth in the first half, beginning to ease in the second half of the year.”
According to the report, the company’s space system’s growth totaled $231 million, owing in part to increased sales in its launch and strategic missiles business area. Space systems previously projected double-digit growth for 2022, and it is currently on track to do that.
For Northrop Grumman as a whole, the company reported $8.8 billion in sales for the second quarter of 2022. In comparison, the company reported $9.2 billion in the second quarter of 2021. According to the company, this year’s second quarter earnings “reflect solid segment margins and lower sales.”
Northrop Grumman serves as an industry leader in the space sector, pioneering projects such as the Mission Extension Vehicle (MEV), which prolongs a satellite’s flight in low-Earth orbit (LEO)—effectively extending the life of fully-functional spacecraft.