What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2026-01-27 compared with 2025-01-30 · 54 added, 89 removed, 201 unchanged (42% of the section changed)

3 unchanged sentences

and international customers, and principally to the U.S.

Department of Defense (DoD) and intelligence community.

Department of War (“DoW”) and intelligence community.

Our broad portfolio is aligned to support national security priorities and our solutions equip our customers with capabilities they need to connect, protect and advance humanity.

5 unchanged sentences

Northrop Corporation was a principal developer of flying wing technology, including the B-2 Spirit stealth aircraft.

We developed into one of the largest defense technology companies in the world through a series of acquisitions, as well as organic growth, including the following:

We developed into one of the largest defense technology companies in the world through organic growth and a series of acquisitions and divestitures, including the following:

• 1994 - Acquired Grumman Corporation, a premier military aircraft systems integrator.

7 unchanged sentences

(OATK), developer and producer of satellites and other space systems, launch vehicles and missile products;

• 2021 - Completed the sale of our IT and mission support services business (the “IT services divestiture”) to Veritas Capital.

• 2021 - Completed the sale of our IT and mission support services business to Veritas Capital.

From time to time, we acquire or dispose of businesses and realign contracts, programs or businesses among and within our operating segments.

2 unchanged sentences

Aeronautics Systems, Defense Systems, Mission Systems and Space Systems.

Effective July 1, 2024, the company realigned the Strategic Deterrent Systems (SDS) division, which includes the Ground-Based Strategic Deterrent (“Sentinel”) program, from Space Systems to Defense Systems.

Effective January 1, 2025, the company realigned the Strike and Surveillance Aircraft Solutions (SSAS) business unit from Defense Systems to Aeronautics Systems.

This realignment is reflected in the financial information contained in this report.

NORTHROP GRUMMAN CORPORATION

Subsequent Realignment - Effective January 1, 2025, the company realigned the Strike and Surveillance Aircraft Solutions (SSAS) business unit from Defense Systems to Aeronautics Systems.

This realignment is not reflected in the financial information contained in this report;

it will be reflected in the company’s operating results beginning in the first quarter of 2025.

AERONAUTICS SYSTEMS

5 unchanged sentences

tactical fighter and air dominance aircraft;

NORTHROP GRUMMAN CORPORATION

airborne battle management and command and control systems;

and unmanned autonomous aircraft systems, including high-altitude long-endurance (HALE) strategic intelligence, surveillance and reconnaissance (ISR) systems.

and uncrewed autonomous aircraft systems, including high-altitude long-endurance (HALE) strategic intelligence, surveillance and reconnaissance (ISR) systems.

Approximately 40 percent of this business is performed through restricted programs.

1 unchanged sentence

• Development and production of the U.S.

Air Force B-21 Raider long-range strike aircraft that defines sixth-generation technologies;

Air Force B-21 Raider long-range strike aircraft that define sixth-generation technologies;

• Modernization and sustainment services for the B-2 Spirit stealth aircraft;

• Development and production of the E-130J Phoenix II nuclear command, control and communications (NC3) aircraft for the U.S.

Navy’s Take Charge And Move Out (TACAMO) mission;

• Fuselage production for the F-35 Lighting II Joint Strike Fighter and F/A-18 Super Hornet for use by U.S.

6 unchanged sentences

Air Force, Japan, and the Republic of Korea;

• North Atlantic Treaty Organization (NATO) Alliance Ground Surveillance (AGS), a Global Hawk variant, for strategic ISR missions conducted in multinational theater operations.

• Global system sustainment and operations support for the F-35, B-2, F/A-18, E-2, E-3, A-10, North Atlantic Treaty Organization (NATO) Alliance Ground Surveillance (AGS), Triton, Global Hawk, and restricted programs.

DEFENSE SYSTEMS

Defense Systems is a leader in the design, engineering, development, integration and production of strategic deterrent systems, advanced tactical weapons, and missile defense solutions, and a provider of sustainment, modernization and training services for manned and unmanned aircraft and electronics systems for the U.S.

Defense Systems is a leader in the design, engineering, development, integration and production of strategic deterrent systems, advanced tactical weapons, and missile defense solutions for the U.S.

military and a broad range of international customers.

4 unchanged sentences

high-performance gun systems, ammunition, precision munitions and advanced fuzes;

and aircraft and mission systems logistics support, sustainment, operations and modernization.

and weapons integration, modernization, and sustainment.

Less than 5 percent of this business is performed through restricted programs.

7 unchanged sentences

Navy’s Advanced Anti-Radiation Guided Missile (AARGM), a medium-range, air-to-surface missile, and its extended range variant, AARGM-ER;

• Medium caliber cannons for air, land, sea and counter unmanned aircraft systems (C-UAS) applications, ranging from 20mm to 50mm configurations;

Air Force’s Stand-In Attack Weapon (SiAW), an advanced capability air-to-surface tactical missile for the F-35;

• Hypersonic Attack Cruise Missile (HACM) air-breathing, scramjet propulsion subsystem for the hypersonic air-launched cruise missile to travel at speeds of Mach 5 or greater;

• Precision Guidance Kit (PGK), replaces conventional fuzes for artillery and mortar munitions and transforms them into Global Positioning System (GPS) enabled precision guided weapons;

• Production of solid rocket motors for the Precision Strike Missile (PrSM) program and Third Stage Rocket Motor (TSRM) for the Standard Missile (SM-3) program.

NORTHROP GRUMMAN CORPORATION

• Global system sustainment and operations support for the F-35, B-2, P-3 Orion, E-6B Mercury, KC-30A multi-role tanker, C-27J transport, NATO AGS, Triton and restricted programs;

• Precision Guidance Kit (PGK), replaces conventional fuzes for artillery and mortar munitions and transforms them into Global Positioning System enabled precision guided weapons;

• Forward Area Air Defense Command and Control (FAAD C2), the Army’s long-standing program of record for short range air defense and Counter Rocket, Artillery and Mortar (C-RAM), as well as the interim C2 for Counter Unmanned Aircraft Systems (C-UAS);

• AAQ-24 sensor sustainment and repair for U.S.

military customers;

• Special Electronics Mission Aircraft (SEMA) ISR support.

MISSION SYSTEMS

1 unchanged sentence

defense and intelligence community, and international customers.

Major products and services include command, control, communications and computers, intelligence, surveillance and reconnaissance (C4ISR) systems;

radar, electro-optical/infrared (EO/IR) and acoustic sensors;

Major products and services include radar, electro-optical/infrared (EO/IR) and acoustic sensors;

command, control, communications and computers, intelligence, surveillance and reconnaissance (C4ISR) systems;

electronic warfare systems;

6 unchanged sentences

Approximately 30 percent of this business is performed through restricted programs.

Key unrestricted programs include:

• Scalable Agile Beam Radar (SABR), an active electronically scanned array fire control radar system for F-16 aircraft;

Key programs include:

• Large Aircraft and Common Infrared Countermeasures (LAIRCM, DoN LAIRCM, CIRCM) systems, which protect large aircraft as well as rotary wing and medium fixed wing aircraft from infrared missiles using advanced laser technology;

• F-35 fire control radar and Distributed Aperture System (DAS), which provides 360 degree field of view tracking, identifying, missile warning and night vision capabilities;

• F-35 Communications, Navigation and Identification (CNI) integrated avionics system, which provides secure communications and interoperability capabilities;

• Scalable Agile Beam Radar (SABR), an active electronically scanned array fire control radar system for F-16 aircraft;

• Ground/Air Task Oriented Radar (G/ATOR), a mobile multi-mode active electronically scanned array;

• Surface Electronic Warfare Improvement Program (SEWIP) Block III, which protects surface ships from anti-ship missiles, provides early detection, signal analysis and threat warning;

• Power generation and propulsion systems for Virginia and Columbia class submarines;

• Airborne Early Warning & Control (AEW&C).

The centerpiece of the E-7 AEW&C aircraft is the Multi-role Electronically Scanned Array (MESA) radar which enables 360 degree long range advanced air moving target indicator (AMTI) capabilities for Battle Management, Command and Control, and Maritime Surveillance;

• Battlefield Airborne Communications Node (BACN), one of the first airborne gateway systems that allows platforms to communicate and securely share data;

• DDG Modernization, which is comprised of several subsystems to support modernization of Arleigh Burke-class guided missile destroyers including Integrated Bridge and Navigation Systems (IBNS) and ship control systems;

• LITENING Advanced Targeting Pod, an electro-optical infrared sensor system for targeting and surveillance that enables aircrews to detect, acquire, identify and track targets at long ranges;

2 unchanged sentences

• Exploitation and cyber programs, which provide cyber and intelligence domain support through unique intelligence and cyber capabilities;

• Embedded GPS / Inertial Navigation Systems-Modernization (EGI-M) program, which provides state-of-the-art airborne navigation capabilities with an open architecture that enables rapid responses to future threats;

• AC/MC 130J Radio Frequency Countermeasures system, which provides superior situational awareness and better enables aircraft survivability in operationally relevant environments.

• Embedded Global Positioning System (GPS) / Inertial Navigation Systems-Modernization (EGI-M) program, which provides state-of-the-art airborne navigation capabilities with an open architecture that enables rapid responses to future threats.

NORTHROP GRUMMAN CORPORATION

SPACE SYSTEMS

5 unchanged sentences

Approximately 45 percent of this business is performed through restricted programs.

Key unrestricted programs include:

• Evolved Strategic SATCOM (ESS) satellites and payloads providing assured, no-fail, and survivable Nuclear Command and Control (NC3) communications capabilities;

• Next-Generation Overhead Persistent Infrared (Next-Gen OPIR) program satellites and payloads providing resilient and enhanced missile warning over the critical northern polar region;

• Space Development Agency Tracking and Transport layers providing missile warning/tracking and resilient, low-latency, high-volume data transport communication systems;

• Missile defense systems, interceptors, targets, mission processing and boosters for the Missile Defense Agency's (MDA) Ground-based Midcourse Defense Weapon Systems (GWS);

Key programs include:

• 63-inch diameter Graphite Epoxy Motor (GEM 63) and the extended length variation (GEM 63XL) solid rocket boosters used to provide lift capability for the ATLAS V and Vulcan launch vehicles;

• Space Development Agency (SDA) Tracking and Transport layers providing missile warning/tracking and resilient, low-latency, high-volume data transport communication systems;

NORTHROP GRUMMAN CORPORATION

• Glide Phase Interceptor (GPI) Cooperative Development producing interceptor capability to defeat hypersonic threats;

• Cygnus spacecraft, used in the execution of our Commercial Resupply Services (CRS) contracts with NASA to resupply and re-boost the International Space Station;

• Development and production of solid rocket motors for NASA’s Space Launch System (SLS) heavy lift vehicle;

• Missile defense systems, interceptors, targets, mission processing and boosters for the Missile Defense Agency's (MDA) Ground-based Midcourse Defense Weapon Systems (GWS);

• Habitation and Logistics Outpost (HALO) module in support of NASA’s Lunar Gateway;

• 63-inch diameter Graphite Epoxy Motor (GEM 63) and the extended length variation (GEM 63XL) solid rocket boosters used to provide lift capability for the ATLAS V and Vulcan launch vehicles;

• Next-Generation Overhead Persistent Infrared (Next-Gen OPIR) program satellites and payloads providing resilient and enhanced missile warning over the critical northern polar region;

• Development and production of solid rocket motors for NASA’s Space Launch System (SLS) heavy lift vehicle;

• Medium-class solid rocket motors for the U.S.

Navy's Trident II Fleet Ballistic Missile program.

• Glide Phase Interceptor (GPI) Cooperative Development producing interceptor capability to defeat hypersonic threats;

• Protected Tactical SATCOM (PTS) satellites and payloads providing resilient, protected tactical communications to U.S.

• Arctic Satellite Broadband Mission (ASBM) satellites and payloads expanding both commercial as well as military broadband communications for an international partner.

CUSTOMER CONCENTRATION

5 unchanged sentences

COMPETITIVE CONDITIONS

We compete with many companies in the defense, intelligence and federal civil markets.

The Boeing Company, General Dynamics, L3Harris Technologies, Lockheed Martin, and RTX are some of our primary competitors.

We compete with many companies in the defense, intelligence and federal civil markets, including The Boeing Company, General Dynamics Corporation, L3Harris Technologies, Inc., Lockheed Martin Corporation, and RTX Corporation, as well as, increasingly, new entrants and startups.

Key characteristics of our industry include long operating cycles and intense competition, which is evident through the number of competitors bidding on program opportunities and the number of competitor protests of U.S.

4 unchanged sentences

No material portion of our business is seasonal.

NORTHROP GRUMMAN CORPORATION

At December 31, 2025, total backlog, which is equivalent to the company’s remaining performance obligations, was $95.7 billion as compared with $91.5 billion at December 31, 2024.

13 unchanged sentences

See “Risk Factors” for further discussion regarding risks related to raw materials.

NORTHROP GRUMMAN CORPORATION

HUMAN CAPITAL

Underpinned by our values and culture, we hire, promote, and pay based on merit and performance to ensure we have the best team to deliver for our customers.

Underpinned by our values and culture, we hire, promote, and pay based on merit and performance to help ensure we have the best team to deliver for our customers.

Our focus on technology, innovation and career growth enables us to attract qualified talent, particularly those with security clearances and requisite skills in multiple areas, including science, technology, engineering and math.

2 unchanged sentences

Our values reflect our priorities and form the bedrock of our culture:

• We do the right thing – we earn trust, act with ethics, integrity and transparency, treat everyone with respect, value diverse perspectives and foster safe and inclusive environments.

• We do what we promise – we own the delivery of results, focused on quality.

• We do the right thing – we earn trust, act with ethics, integrity and transparency, treat everyone with respect and value diverse perspectives.

• We do what we promise – we own the delivery of results, focused on quality outcomes.

• We commit to shared success – we work together to focus on the mission and take accountability for the sustainable success of our people, customers, shareholders, suppliers and communities.

• We pioneer – with fierce curiosity, dedication and innovation, we seek to solve the world’s most challenging problems.

Among other programs through which the company lives its values, the company maintains a Standards of Business Conduct program through which our employees are empowered to raise concerns through multiple channels without fear of reprisal.

In addition to full-time ethics professionals, we also have over 150 business conduct advisors who promote values and an ethical culture within the company.

Additionally, our annual Employee Experience Survey gives employees a voice and a mechanism to provide feedback on our culture and empower our leaders to enhance the employee experience.

This anonymous survey encourages employee candor on key engagement and inclusion drivers, including belonging, respect, a sense of personal work accomplishment and recommending the company to others.

In 2024, 80 percent of employees responded to the survey, an indication that our employees believe their feedback matters.

Our performance on the annual survey is compared to the Qualtrics Global Benchmark and our survey results exceeded many of their global norms for both engagement and inclusion.

Our leaders review the survey responses and work collaboratively with their teams to take meaningful actions based on survey results.

Our culture and values serve as an enabling force that helps us pioneer, perform and deliver on quality, which results in value for our shareholders, customers, and employees.

We actively seek candidates for employment from a wide range of backgrounds and experiences to tap into the full spectrum of talent available now and in the future to create a culture of belonging for everyone.

NORTHROP GRUMMAN CORPORATION

Talent Management

Northrop Grumman’s talent strategy is focused on four key pillars:

broadening talent pools;

enhancing the employee experience;

building leaders of the future;

and fostering employee growth.

Our strategy addresses the external and internal landscape and ensures that we can attract, retain and develop the workforce necessary to support the continued success of the business.

We hold regular talent review discussions to ensure line of sight to talent at various levels of the organization.

We refresh and review succession plans to ensure a robust pipeline of talent and business continuity with a tight linkage to development.

We focus on accelerating learning and development of our leaders by providing a combination of experiences, exposure and education.

Our employee development programs strengthen employee skills aligned to our current and future business needs through on-the-job development, knowledge sharing and tools to support career growth.

Employees utilize curated, career-specific resources such as My Learning Experience, a machine learning enabled content aggregator that creates a personalized learning experience for each employee.

Our Education Assistance Program subsidizes tuition and other educational institution fees to support development through job-related degrees and certificates.

Our early-in-career rotation program, Pathways, develops talent pipelines with both depth of critical skills and breadth of experiences.

Our technical cohort programs cultivate technical, domain expertise and collaborative thought leadership for early through advanced career levels.

In a rapidly changing world, we maintain focus on keeping our team and our company prepared for the evolving future of work.

In addition to offering our employees flexible work arrangements, caregiver support and mental health services that help our employees make their careers work within their lives, we also help our employees build the careers that will serve them into the future.

We ensure that our employees have the tools and resources to develop their knowledge base and skill sets, so they can continue to thrive at Northrop Grumman even in the midst of change.

When our employees succeed and grow at work, our business succeeds and grows.

Through a focus on our employees, we remain agile and innovative, adapting to the future as it unfolds before us.

Our talent strategy is designed to secure the people, skills, and leadership required to support the company’s long term growth.

It is anchored in recruiting and deploying talent, building a future-ready workforce and engaging our employees.

We attract, develop, and retain top critical talent while preparing our workforce for the future by increasing expertise in critical technology areas.

We focus on talent readiness to ensure a robust pipeline of employees with the skills and expertise necessary to support our business and provide business continuity.

We employ a mix of on-the-job training and development, in-person training and virtual curated career-specific resources that allow employees to personalize their development.

We encourage all employees, regardless of level, to cultivate leadership skills, enabled by our leadership development platform.

Talent review discussions are built into our operational cadence with an emphasis on providing the experience needed to accelerate development.

As part of our employee experience focus, we offer flexible work arrangements, caregiver support and mental health services that help our employees make their careers work within their lives and help them build the careers that will serve them in the future.

To help ensure our employees have the tools and resources necessary to align with industry transformation and workforce expectations, we continue to adapt our ways of working and implement technology that enhances the employee experience.

Employee Health and Safety

Health and safety are foundational to our success.

People are our most valuable resource and we prioritize occupational health and safety to position the company for long-term success.

Training and risk and hazard identification, mitigation and prevention are key components of Northrop Grumman’s safety program.

Training and risk/hazard identification, mitigation and prevention are key components of Northrop Grumman’s safety program.

Everyone has a responsibility to identify workplace hazards, and employees may raise concerns without fear of reprisal.

2 unchanged sentences

Collective Agreements

Approximately 4,100 employees are covered by 15 collective agreements in the U.S., of which we negotiated five renewals in 2024 and expect to negotiate seven renewals in 2025.

Approximately 4,300 employees are covered by 15 collective agreements in the U.S., of which we negotiated seven renewals in 2025 and expect to negotiate two renewals in 2026.

See “Risk Factors” for further discussion regarding risks related to our workforce and employee relations.

4 unchanged sentences

These programs are generally referred to as “restricted” in this Annual Report.

The consolidated financial statements and financial information in this Annual Report reflect the operating results of our entire company, including restricted programs.

The consolidated financial statements and

NORTHROP GRUMMAN CORPORATION

financial information in this Annual Report reflect the operating results of our entire company, including restricted programs.

We generate the majority of our business from long-term contracts with the U.S.

8 unchanged sentences

government are routinely audited by the Defense Contract Audit Agency (DCAA).

NORTHROP GRUMMAN CORPORATION

Our long-term contracts typically fall into one of two contract types:

6 unchanged sentences

Incentive fees are generally based on cost or schedule and provide for an initially negotiated fee to be adjusted later, based on the relationship of total allowable costs to total target costs or as schedule milestones are met.

Award and incentive fees are included in total estimated sales to the extent it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved.

We estimate variable consideration as the most likely amount to which we expect to be entitled.

Fixed-price contracts – Firm fixed-price contracts include a specified scope of work for a price that is a pre-determined, negotiated amount and not typically subject to adjustment regardless of costs incurred by the contractor, absent changes by the customer.

5 unchanged sentences

See Note 1 to the consolidated financial statements and “Risk Factors” for further information regarding our contracts and Note 15 to the consolidated financial statements for sales by contract type.

NORTHROP GRUMMAN CORPORATION

The following table summarizes sales for the year ended December 31, 2025, recognized by contract type and customer category:

16 unchanged sentences

See “Risk Factors” and Notes 1 and 11 to the consolidated financial statements for further information regarding environmental matters.

Our environmental sustainability goals focus on Northrop Grumman’s facilities in addition to supply chain partners and customers:

NORTHROP GRUMMAN CORPORATION

• Net zero greenhouse gas emissions (GHG) in operations (Scopes 1 and 2) by 2035.

Interim target of 50% GHG emissions reduction by 2030;

• Source 50 percent of total electricity from renewable sources by 2030;

• Reduce 10% of absolute water withdrawals, reuse 10% of water withdrawals and replenish 10% of water withdrawals, focusing in water-stressed regions — all by 2030;

• Reduce solid waste sent to landfill and incineration by 10% by 2030;

• In collaboration with key customers, work to develop a pioneering product stewardship program focused on material efficiency, product design and life cycle assessment;

• Expand Technology for Conservation initiatives in proximity to Northrop Grumman's U.S.

locations by 2030, in collaboration with external partners.

Our environmental sustainability goals help manage the environmental impact of our operations.

We are focused on achieving Net Zero greenhouse gas emissions (GHG) in our operations (Scopes 1 and 2) by 2035, while also sourcing electricity from renewable sources and reducing our water withdrawals and solid waste footprint.

Additional information regarding our environmental sustainability goals is available in our Sustainability Report, which can be found on our company website.

4 unchanged sentences

Our telephone number is (703) 280-2900 and our home page is www.northropgrumman.com.

Our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and proxy statement for the annual shareholders’ meeting, as well as any amendments to those reports, are available free of charge through our website as soon as reasonably practicable after we file them with the U.S.

Our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and proxy statement for the annual meeting of shareholders, as well as any amendments to those reports, are available free of charge through our website as soon as reasonably practicable after we file them with the U.S.

Securities and Exchange Commission (SEC).

3 unchanged sentences

Such information should not be considered a part of this report, unless otherwise expressly incorporated by reference in this report.

NORTHROP GRUMMAN CORPORATION

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business