Northrop Grumman Wins $4.8 Billion US Army Deal

Northrop Grumman Corporation secured a $4.8 billion contract from the US Army on 15 September 2026 for full-rate production of the Common Infrared Countermeasure system, known as CIRCM. The agreement is scheduled to run through September 2035. The full $4.8 billion ceiling does not immediately enter the backlog, but it expands the company's long-term opportunity pipeline.

The company has already delivered over 750 CIRCM shipsets, which have accumulated more than 75,000 operational flight hours on platforms including the AH-64 Apache and CH-47 Chinook. CIRCM has also generated international orders from the United Kingdom and Germany for Chinook helicopters.

Northrop secured $20 billion of net awards in the second quarter, which lifted its total backlog to a record $104.7 billion. Key second-quarter wins included $7.6 billion for Sentinel, $4.3 billion for restricted programs, and $1 billion for F-35 work. Second-quarter operating cash flow rose 47% to $1.28 billion, and adjusted free cash flow increased 54% to $978 million.

Margin pressure remains an operational challenge. Northrop's second-quarter overall operating margin fell to 10.1% from 13.8% a year earlier. Defense Systems margin dropped to 7.5% from 12.7%, driven partly by higher costs on the AARGM-ER and SiAW programs, while Space Systems recorded an unfavorable $91 million estimate-at-completion adjustment on the GEM 63XL.

Northrop Grumman raised its full-year 2026 sales guidance to between $43.8 billion and $44.3 billion, up from its prior outlook of $43.5 billion to $44.0 billion. It also increased its MTM-adjusted EPS guidance to a range of $28.60 to $29.10, compared to the previous band of $27.40 to $27.90. Adjusted free cash flow guidance was held steady at $3.1 billion to $3.5 billion. Separately, 59 hedge funds tracked by Insider Monkey held the stock in the second quarter, while short interest stood at 2.39 million shares, representing 1.68% of the public float.