Northrop raises annual profit forecast on strong demand

By Utkarsh Shetti and Mike Stone (Reuters) -Northrop Grumman raised its 2025 profit forecast for a second straight quarter on Tuesday, as the defense contractor expects continued demand for its weapons and military aircraft. Conflicts in the Middle East and a protracted Russia-Ukraine war have prompted a surge in demand for missiles and fighter jets, boosting sales at defense contractors. However, the impact of the Trump administration's trade war on an already-strained supply chain has pressured production in multiple industries, including defense, and suppressed the ability of businesses to execute on their backlogs. Northrop trimmed its full-year 2025 sales outlook. It now expects between $41.7 billion and $41.9 billion, compared with its previous forecast of $42.05 billion-$42.25 billion. Shares of the company fell 2.2% in premarket trading. The company is also expected to compete on contracts for U.S. President Donald Trump's marquee $175 billion Golden Dome missile defense system, which could drive sales going forward. Northrop, which makes B-2 Spirit stealth bombers used in U.S. strikes on Iran's nuclear sites earlier this year, said it now expects 2025 adjusted profit between $25.65 and $26.05 per share, up from its prior forecast of between $25.00 and $25.40 per share. The defense giant's total revenue rose 4% to $10.42 billion in the third quarter. It reported net income of $1.1 billion, or a per-share profit of $7.67, compared with $1.03 billion, or $7.00 per share, a year ago. (Reporting by Utkarsh Shetti in Bengaluru and Mike Stone in Washington; Editing by Saumyadeb Chakrabarty)

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