Northrop Grumman wins $123.8M Navy radar deal

Northrop Grumman received a contract not to exceed $123.8 million from the U.S. Navy. The award funds long-lead materials, parts, components, and related efforts to support the production of 67 APG-85 radars for the Air Force, Marine Corps, and Navy.

Work will take place in Linthicum Heights, Maryland, and is expected to finish by February 2031. The radar provides advanced sensing and targeting capabilities for the F-35 fighter jet, helping detect and track threats across the U.S. military fleet.

The long-term contract supports recurring revenue for the company alongside other F-35 suppliers, including prime contractor Lockheed Martin and engine supplier RTX Corporation.

Shares of Northrop Grumman rose 1.8% over the past three months, compared with a 10.3% decline across its industry. The stock trades at a forward 12-month price-to-sales multiple of 1.57 times, below the industry average of 2.24 times. The Zacks consensus earnings estimates for 2026 and 2027 have remained unchanged over the last 60 days.