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Northrop Grumman Space Systems Sees Biggest Boost in Strong FY 20 

By Rachel Jewett | January 28, 2021
Northrop Grumman headquarters in Falls Church, Virginia. Photo: Northrop Grumman.

Northrop Grumman headquarters in Falls Church, Virginia. Photo: Northrop Grumman.

The Space Systems segment of Northrop Grumman Corporation led the company in sales increases for both the Fourth Quarter (Q4) of 2020, and for the full year. In Q4, Space Systems reported $2.6 billion in sales, a 31% increase over the same quarter in 2019. Overall, Space Systems reported $8.7 billion in sales in 2020, an 18% increase over 2019. 

The company attributed the full year increase to higher sales in both Space and Launch & Strategic Missiles. Space sales were driven by higher volume on restricted programs and the Next Gen Overhead Persistent Infrared (OPIR) and NASA Artemis programs. Launch & Strategic Missiles sales increased due to ramp-up on Ground Based Strategic Deterrent (GBSD) and higher volume on launch vehicles and hypersonics programs. 

Space Systems’ operating income increased as well, to $794 million in 2020, a 12% increase over 2019. 

Overall, Northrop Grumman had a strong year, and reported that Q4 2020 sales increased 17% to $10.2 billion, and 2020 sales increased 9% to $36.8 billion. Q4 and year to date 2020 net awards totaled $9.9 billion and $52.9 billion, respectively, and backlog was $81 billion, including $0.4 billion for Commercial Resupply Service Extension missions. Northrop Grumman highlighted significant new awards for Space Systems in 2020 including $9 billion in restricted programs, and $1.9 billion for Next Gen OPIR

“Our team continues to show resilience and agility, which allows us to execute our strategy, deliver for our customers and support our employees and communities in the midst of a global pandemic. Our continued growth, strong performance and portfolio-shaping decisions position us for value-creating capital deployment,” Kathy Warden, chairman, chief executive officer, and president said in a news release.

The company is forecasting sales between $35.1 billion and $35.5 billion for 2021.

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