Northrop Grumman Awarded $198M Contract
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2d ago
0mins
Should l Buy NOC?
Northrop Grumman was awarded a $198M ceiling-priced delivery order under previously awarded basic ordering agreement for the purchase of 608 power amplifier module spares in support of the E-2D Advanced Hawkeye aircraft. The delivery order does not include an option period. All work will be performed in Melbourne, Florida. Work is expected to be completed by February 2029. This announcement involves Foreign Military Sales (FMS) from Japan. Working capital funds in the amount of $64.31M and FMS funds in the amount of $32.71M, will be obligated at time of award, and funds will not expire at the end of the current fiscal year. One firm was solicited for this non-competitive requirement pursuant to the authority set forth in 10 U.S. Code. 3204, with one offer received. Naval Supply Systems Command is the contracting activity.
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Analyst Views on NOC
Wall Street analysts forecast NOC stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for NOC is 684.08 USD with a low forecast of 630.00 USD and a high forecast of 770.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
10 Buy
3 Hold
0 Sell
Strong Buy
Current: 696.500
Low
630.00
Averages
684.08
High
770.00
Current: 696.500
Low
630.00
Averages
684.08
High
770.00
About NOC
Northrop Grumman Corporation is a global aerospace and defense technology company. Its segments include Aeronautics Systems, Defense Systems, Mission Systems, and Space Systems. Aeronautics Systems is engaged in the design, development, production, integration, sustainment and modernization of military aircraft systems for the United States Air Force, the United States Navy, other United States government agencies, and international customers. Defense Systems is engaged in the design, engineering, development, integration, and manufacturing of deterrent systems, advanced tactical weapons, and missile defense solutions. Mission Systems is a provider of mission solutions and multifunction systems. Its products and services include command, control, communications and computers, and reconnaissance (C4ISR) systems. Space Systems delivers end-to-end mission solutions through the design, development, integration, production and operation of space, missile defense, and launch systems.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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Reduction in Shareholding: Kathy J has reduced her shareholding in Northrop Grumman by 10,000 shares since January 5, 2026, with a total value of around $6.05 million.
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- Governing Party Dynamics: The market shows a 99% support rate for the ruling Liberal Democratic Party (LDP) while the Japan Innovation Party (JIP) stands at only 22%, suggesting that the LDP may govern without its coalition partner, providing Takaichi with a “clear runway” to implement more hawkish policies.
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- Execution Locations: Work under this contract will be performed in Buffalo, New York, and various foreign locations, with an expected completion date of February 1, 2033, highlighting the company's active involvement in international military sales.
- Initial Funding Source: The initial funding of $12,014 comes from the Royal Saudi Air Force, reflecting international clients' trust and reliance on Northrop Grumman's products, potentially laying the groundwork for future contracts.
- Contract Management Unit: The contract is managed by the Air Force Life Cycle Management Center at Hill Air Force Base in Utah, underscoring the U.S. Air Force's significant role in global military cooperation.
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- Cash Flow Issues: Despite Kratos's strong position in high-tech military hardware, the quality of its earnings is questionable as the company fails to generate positive free cash flow, resulting in ongoing cash burn that could impact its long-term financial health.
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- Technology Integration: The acquisition will fold Rotron's technology into Ondas Autonomous Systems, expected to add 'attritable' one-way attack systems and expand options for long-range precision engagement, thereby enhancing the company's operational capabilities in contested environments.
- Market Positioning: Ondas CEO Eric Brock stated that this acquisition will accelerate the company's roadmap toward providing customers with end-to-end autonomous mission capabilities, covering the entire service chain from sensing and decision-making to long-range precision engagement, further solidifying its market position.
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