Northrop Grumman’s Deep Space Advanced Radar Capability (DARC) award was a key award in Q1 2022. Photo: Northrop Grumman

Northrop Grumman’s Space Segment increased sales by 13% in the first quarter of 2021, partially offsetting an overall dip in sales during the quarter. Northrop Grumman reported its first quarter results on April 28. 

The Space Systems segment reported $2.9 billion in sales in Q1 of 2022, a 13% increase compared to the same quarter last year. Both the Launch & Strategic Missiles and Space business contributed to the increase. 

Launch & Strategic Missiles sales saw a $130 million increase on the Next Generation Interceptor program and a $117 million increase on the Ground Based Strategic Deterrent. GBSD program. Space sales were driven by higher volume on Commercial Resupply Service to the International Space Station and restricted programs, partially offset by lower volume on the James Webb Space Telescope after its successful launch in December 2021.

First quarter 2022 operating income decreased by 5% to $261 million, due to a lower operating margin rate, partially offset by higher sales volume. 

“Our space business continues to experience rapid growth as our customers re-architect their space-based capabilities,” CEO Kathy Warden said on Thursday’s investor call. “This growth is in response to adversaries developing more sophisticated weapons, the need for more capable missile defense warning systems, as well as the migration of some airborne missions to the space domain.” 

Warden said the company expects to see double-digit growth in the Space Segment again this year, and that Northrop Grumman is expecting a $2 billion award in the second quarter from United Launch Alliance (ULA) to provide GEM 63 rocket motors to support launches for Amazon’s Project Kuiper. 

Warden highlighted contract wins in the quarter including a nearly $700 million award for 42 satellites in Low-Earth Orbit for the Space Development Agency’s Transport Layer, and a $340 million contract for Deep Space Advanced Radar Capability (DARC) to improves situational awareness in Geosynchronous Orbit. 

The Space Systems segment continues to lead Northrop Grumman’s growth. In 2021, Space Systems grew sales 21% from the 2020 total. Sales for the segment in 2020 were up 18% compared to 2019. 

Space Systems was the only segment to see sales growth in Q1 2022. Defense Systems was down 18%, Aeronautics Systems down 10%, and Mission Systems down 4% compared to the same time period in 2021. 

Overall, Northrop Grumman reported $8.8 billion in sales in Q1, down 4% compared to the same time last year. The company cited a $162 million reduction in sales related to the IT services divestiture, and said Q1 organic sales “reflect the continuation from 2021 of a tightened labor market as well as some temporal COVID-19-related headwinds early in the quarter related to supply chain and labor disruption.”