Northrop Grumman reports record backlog on defense demand

On 17 September 2026, Northrop Grumman Chairman and CEO Kathy Warden announced at a Morgan Stanley aerospace and defense conference that the company has reached a record order backlog. The increase is driven by U.S. and allied demand across its four operating divisions, led by the B-21 bomber, the Sentinel nuclear modernization program, national-security space contracts, and munitions.

Warden stated that the company and the U.S. Air Force agreed earlier in the year to accelerate B-21 production rates, where initial low-rate production is already under way. The Air Force is evaluating whether to expand procurement beyond the current target of 100 aircraft, with findings expected before Congress later this year. For the Sentinel program, Northrop recently integrated all missile components and set the first test for 2027, ahead of full production planned for the 2030s.

The defense contractor is pursuing 10 munitions agreements across eight weapons systems, having qualified as a second supplier of solid rocket motors for Lockheed Martin's PAC-3 program. Northrop has built two solid-rocket-motor plants since acquiring Orbital ATK in 2019, with two additional sites near completion. In marine systems, its nuclear submarine propulsion business generates more than $1 billion in annual revenue, which Warden expects could double as build rates increase.

To fund capacity expansions for the B-21, munitions, and space systems, Northrop plans to maintain annual capital spending between 4% and 4.5% of revenue over the coming years. The company reaffirmed its target to exceed $10 billion in annual international sales by 2031, while maintaining its regular dividend and returning excess capital to shareholders.