Northrop Grumman

Northrop Grumman Corporation
	File:Northrop Grumman logo.svg Logo of Northrop Grumman
Company type	Public
Industry	Aerospace, Defense
Founded	1994
Headquarters	West Falls Church, Virginia, United States
Area served	Worldwide
Products	Strategic bombers (B-21 Raider, B-2 Spirit), aircraft fuselages (F-35 Lightning II, F/A-18 Super Hornet), UAVs (MQ-4C Triton, RQ-4 Global Hawk), missile systems, military radar and sensor systems, satellite communications, spacecraft (Cygnus)
Website	www.northropgrumman.com

Northrop Grumman Corporation, based in West Falls Church, Virginia, ranks among the foremost companies in aerospace and defense. As the fifth-largest contractor to the U.S. federal government, it accounts for more than 2% of total federal contracting expenditures.

The Aeronautics Systems segment, contributing 29% to the 2024 revenue, is responsible for developing strategic bombers such as the forthcoming B-21 Raider, anticipated to be operational by 2029, while maintaining production of the B-2 Spirit. This division also produces fuselages for aircraft including the F-35 Lightning II and F/A-18 Super Hornet, in addition to unmanned aerial vehicles like the MQ-4C Triton and reconnaissance platforms such as the RQ-4 Global Hawk.

Representing 19% of revenue in 2024, the Defense Systems division specializes in upgrading intercontinental ballistic missile systems like the LGM-35 Sentinel, missile defense command infrastructure, and precision guidance solutions.

Mission Systems, which generates 25% of total revenue, provides sophisticated military radar, sensor arrays, and C4I (Command, Control, Communications, Computers, and Intelligence) systems designed for air defense and battlefield monitoring. This supports aircraft such as the F-16 Fighting Falcon, F-22 Raptor, and F-35 Lightning II.

The Space Systems segment, accounting for 27% of revenue, focuses on satellite communication technologies, advanced infrared satellite development, uncrewed spacecraft including Cygnus, rocket propulsion units for NASA’s Space Launch System, and contributes to lunar mission efforts.

Placed at number 110 on the Fortune 500 list, Northrop Grumman reported revenues of $41.03 billion in 2024. Of this total, approximately 87% stemmed from U.S. federal contracts while international sales made up about 12%. The company has received nine Collier Trophies recognizing its aerospace innovations, notably for contributions to the James Webb Space Telescope.

Established in 1994 through the merger between Northrop Corporation and Grumman Aerospace, Northrop Grumman has built a robust market position via strategic leadership, a broad portfolio of products and services, and extensive global operations.

History

The roots of Northrop Grumman trace back to the early 1900s with the creation of Grumman Aircraft Engineering Corporation by Leroy R. Grumman in December 1929 on Long Island, New York. By 1939, operations had expanded to Bethpage, New York. During World War II, Grumman served as a principal manufacturer of aircraft for the U.S. Navy. After the war, its product range widened to include ballistic missiles, all-weather radar systems, the Apollo Lunar Module, as well as advanced fighter jets and stealth bombers.

Northrop Corporation was founded in California in 1939 by Jack Northrop and later reincorporated in Delaware in 1985. Renowned for producing lightweight fighters such as the F-5 along with experimental flying wing models like the XB-35 and YB-49, Northrop laid the foundation for the B-2 Spirit stealth bomber program where it acted as prime contractor. In the post-Cold War era, Northrop adopted a growth strategy driven by acquisitions including Grumman Aerospace, Westinghouse, and TRW Inc.. In 2018, it further expanded its global footprint by acquiring Orbital ATK—now operating as Northrop Grumman Innovation Systems—solidifying its status as one of the world’s largest defense contractors.

1990s

In 1994, Northrop Aircraft purchased Grumman Aerospace, renowned for constructing the Apollo Lunar Module, for $2.1 billion, resulting in the establishment of Northrop Grumman (NG). That same year, NG acquired the remaining 51% stake in Vought Aircraft Company for $130 million, gaining complete ownership.

Two years later, in 1996, NG broadened its capabilities by acquiring Westinghouse Electric Corporation's defense and electronics systems division, which included radar production, for $2.9 billion, as well as Xetron Corporation. In 1997, NG further expanded by acquiring defense contractor Logicon, itself previously having absorbed Geodynamics and Syscon Corporations.

Northrop served as the prime contractor for the YF-23 Advanced Tactical Fighter prototype, which was ultimately outperformed by the F-22 Raptor. Subsequently, the company joined forces with Lockheed Martin as a key partner in the F-35 industry consortium.

A planned merger between Northrop Grumman and Lockheed Martin in 1998 was abandoned due to regulatory hurdles. That year also saw NG acquire Inter-National Research Institute Inc. The following year, 1999, the company continued its growth through acquisitions including Teledyne Ryan (specializing in surveillance and unmanned aircraft), California Microwave, and Data Procurement Corporation.

In late 1999, Northrop Grumman recorded a net loss attributed to its involvement with start-up satellite launch firm Kistler Aerospace. Additionally, that year NG and Science Applications International Corporation (SAIC) formed AMSEC LLC, a joint venture whose revenues expanded from $100 million in 2000 to roughly $500 million by fiscal year 2007.

2000s

The year 2000 saw Northrop Grumman diversify further by acquiring Federal Data Corporation, Navia Aviation As, Comptek Research, Inc., and Sterling Software, Inc.

In 2001, the company significantly strengthened its naval sector by purchasing Litton Industries, a leading shipbuilder and defense electronics supplier for the U.S. Navy. This acquisition prompted the creation of a Delaware holding company named NNG, Inc., which merged with Northrop Grumman; both Northrop Grumman and Litton became subsidiaries under this structure. The original entity was renamed "Northrop Grumman Systems Corporation," while NNG took on the name "Northrop Grumman Corporation." Later that year, Newport News Shipbuilding was incorporated into the company’s portfolio.

In 2002, Northrop Grumman acquired TRW Inc. for $7.8 billion. Its space systems and laser manufacturing divisions were integrated into newly formed Space Technology and Mission Systems units located in California and Virginia. The aeronautical segment was divested to Goodrich Corporation, whereas TRW's automotive operations retained their brand identity.

Between 1994 and 2003, Northrop Grumman executed 15 acquisitions that bolstered its presence across various defense sectors.

During the mid-2000s, Northrop Grumman collaborated with EADS to propose the KC-30 Multi Role Tanker Transport for the U.S. Air Force's KC-X tanker competition. Although initially selected in 2008, the program was halted later that year; Northrop Grumman withdrew in 2010 citing revised requirements that favored Boeing.

In 2003, the company secured a $48 million contract to train Iraqi Army forces and obtained a $1.2 billion contract from the United Kingdom in 2005 for AWACS radar maintenance services. Additionally, in November 2005, it won a $2 billion information technology modernization contract with the state of Virginia.

On January 1, 2006, Northrop Grumman inaugurated its 'Technical Services' business segment. It also partnered with Boeing on NASA's Orion spacecraft design but ultimately lost this contract to Lockheed Martin.

Although initially planning to compete for the U.S. Air Force's Next-Generation Bomber program in 2006, by 2009 Northrop Grumman shifted focus toward long-range strike capabilities. In 2015, it secured victory with the Long Range Strike Bomber contract—marking a significant milestone.

In July 2007, Northrop Grumman acquired full ownership of Burt Rutan's Scaled Composites, enhancing its aerospace innovation portfolio. That same year saw the creation of 'National Workforce Centers,' designed as alternatives to offshoring and established across several U.S. states.

By June 2008, Northrop Grumman teamed up with DHS Systems LLC on the U.S. Army's Standard Integrated Command Post System program.

In July 2008, three Northrop Grumman employees were released after five years held captive in Colombia—a situation underscoring risks tied to global operations.

In January 2008, Newport News and Ship Systems divisions merged into Northrop Grumman Shipbuilding; this unit was later spun off as Huntington Ingalls Industries in March 2011—streamlining Northrop Grumman’s corporate focus toward core defense markets.

2010s

In November 2010, NASA designated Northrop Grumman as a potential awardee for contracts involving heavy lift launch vehicle system designs and propulsion advancements.

Beginning in 2013, Northrop Grumman engaged in DARPA’s Tactically Exploited Reconnaissance Node (TERN) initiative, obtaining $2.9 million for its initial phase and $19 million for the subsequent phase. The TERN project focuses on deploying and recovering UAVs from medium-sized naval vessels to extend intelligence collection capabilities.

In July 2013, Northrop Grumman was awarded a training simulation contract valued up to $490 million to support the U.S. Air Force’s next-generation virtual training network for aerial combat.

By March 2015, the company had delivered the inaugural shipset for Australia’s EA-18G Growler aircraft.

October 2015 marked Northrop Grumman’s acquisition of a $21.4 billion contract, with potential growth to $80 billion, to develop the B-21 bomber, which will succeed the B-1 and B-52 bombers.

In September 2017, Northrop Grumman announced its intent to acquire missile and rocket producer Orbital ATK Inc for $9.2 billion—comprising $7.8 billion in cash plus $1.4 billion in net debt. Following approval by Orbital ATK shareholders in November 2017 and clearance from the Federal Trade Commission in June 2018, the deal was finalized. Orbital ATK was then integrated as a new division named Northrop Grumman Innovation Systems.

In January 2018, Northrop Grumman was selected as the lead contractor for the James Webb Space Telescope program, further extending its involvement in space technology development.

2020s

As of January 1, 2020, Northrop Grumman restructured its NGIS division by consolidating most operations into a newly formed Space Systems sector aimed at strengthening focus on space exploration, cyber capabilities, and unmanned systems.

In June 2020, NASA granted Northrop Grumman a $935 million contract to construct the Habitation and Logistics Outpost (HALO) module for the Lunar Gateway project, capitalizing on its experience with Cygnus cargo spacecraft. By July 2022, Northrop subcontracted Solstar to integrate Wi-Fi technology into the module to enable operational communication links.

September 2020 saw Northrop halt development of the OmegA space launch vehicle, which had been intended for launching U.S. national security satellites. However, during the same month, the company secured a $298 million sole-source contract for the Evolved Strategic Satcom program—a jam-resistant military communications satellite designed to replace Lockheed Martin’s AEHF system.

In February 2021, Northrop divested its federal IT and mission support division to Veritas Capital for $3.4 billion in cash; this business was merged into Veritas’s Peraton subsidiary.

On March 5, 2021, Northrop won a contract to build the Mars Ascent Propulsion System—a two-stage solid-fueled rocket—for NASA’s Mars Sample Return mission, underscoring its expanding role in deep-space exploration technologies.

In August 2022, Northrop announced plans to relocate production of Antares rocket engines and structures from Russia and Ukraine to the United States through a partnership with Texas-based Firefly Aerospace. This strategic relocation aimed to reduce supply chain vulnerabilities caused by geopolitical instability while securing NASA’s cargo missions to the International Space Station. The collaboration includes joint development of an enhanced Antares 330 rocket and Firefly’s Medium Launch Vehicle (MLV), with Northrop responsible for upper stage systems and launch operations.

The B-21 Raider stealth bomber developed by Northrop is expected to enter service by 2030, with taxi testing beginning in October 2023—demonstrating continued progress in strategic defense capabilities.

On September 15, 2023, China imposed sanctions on Northrop Grumman in response to U.S. arms sales to Taiwan, highlighting ongoing geopolitical tensions affecting its international business activities.

In May 2024, Northrop introduced the Manta Ray underwater drone created for DARPA. Engineered for extended military missions requiring minimal human intervention, this unmanned underwater vehicle advances propulsion and buoyancy control technologies tailored for challenging maritime environments.

By September 2024, Northrop secured a contract from the U.S. Missile Defense Agency to develop the Glide Phase Interceptor (GPI), enhancing its position within hypersonic defense system development.

Remotec

Remotec, a subsidiary based in Tennessee, specializes in producing remote-operated vehicles designed for explosive ordnance disposal and the management of hazardous materials. Meanwhile, Park Air Systems, located in the United Kingdom and also a subsidiary, provides VHF and UHF ground-to-air communication solutions catering to both civilian and defense sectors. Additionally, Northrop Grumman partners with Antenna Associates, Inc., a Massachusetts-based manufacturer that produces Identification Friend or Foe (IFF) and Secondary Surveillance Radar (SSR) antennas.

Finances

Year	Revenue in mil. US$	Operating income in mil. US$	Total assets in mil. US$	Employees
2014	23,979	3,196	26,545	64,300
2015	23,526	3,076	24,424	65,000
2016	24,508	3,193	25,614	67,000
2017	25,803	3,299	34,917	70,000
2018	30,095	3,780	37,653	85,000
2019	33,841	3,969	41,089	90,000
2020	36,799	4,065	44,469	97,000
2021	35,667	5,651	42,579	88,000
2022	36,602	3,601	43,755	95,000
2023	39,290	2,537	46,544	101,000
2024	41,033	4,370	49,359	97,000

Corporate governance

Between 1990 and 2003—prior to the 1994 merger with Grumman—Kent Kresa held the CEO position and spearheaded an aggressive acquisition campaign that incorporated 15 companies such as Litton Industries, Logicon Inc., Westinghouse’s defense electronics division, Ryan Aeronautical Company, Newport News Shipbuilding & Drydock Company, and TRW Inc. He retired in 2003 at the age of 65.

Following Kresa’s retirement in 2003, Ronald Sugar, formerly the Chief Operating Officer (COO), assumed the roles of CEO and chairman starting October 1. In January 2010, Wes Bush took over as CEO and president.

In November 2015, Gloria Flach was appointed Chief Operating Officer after previously overseeing the company’s electric services division.

On July 12, 2018, Wes Bush announced his intention to resign as CEO effective January 1, 2019; he continued as chairman until July 2019. His successor was Kathy J. Warden, who had served as president and COO prior to her promotion.

Board of directors

As of July 22, 2022:

Kathy J. Warden, CEO and president
David Abney, former chairman and CEO of UPS
Marianne C. Brown, COO of Sungard
Donald E. Felsinger, former chairman and CEO of Sempra Energy
Ann M. Fudge, former chairman and CEO of VMLY&R
William Hernandez, former CFO of PPG Industries
Madeleine Kleiner, former general counsel at Hilton Worldwide
Karl Krapek, former president and COO of United Technologies
Graham N. Robinson, president of Stanley Industrial (Stanley Black & Decker)
Gary Roughead, former Chief of Naval Operations
Thomas Schoewe, former CFO of Wal-Mart Stores
Jim Turley, former chairman and CEO of Ernst & Young
Mark Welsh III, former U.S. Air Force Chief of Staff

Corporate headquarters

Since 2011 Northrop Grumman has maintained its corporate headquarters in West Falls Church, Virginia, an unincorporated community within Fairfax County, Virginia. Before relocating there from Century City, Los Angeles—where it was previously based—the company announced plans in January 2010 to move to the Washington Metropolitan Area by 2011 to enhance proximity to key government clients. CEO Wesley Bush emphasized the strategic importance of being near Capitol Hill legislators as well as intelligence and military officials.

The company conducted site assessments across Washington D.C., Maryland, and Virginia. Representatives from these jurisdictions highlighted their respective strengths: D.C.’s closeness to Capitol Hill; Maryland’s skilled workforce coupled with federal agencies; and Virginia’s favorable tax environment. In July 2010 Northrop Grumman acquired a facility in Fairfax County intended to consolidate its Century City headquarters with its Arlington offices into a unified location. This relocation aligned with the firm’s business strategy focused on government contracting while improving operational productivity.

The Washington metropolitan region continues to be vital for Northrop Grumman’s operations; approximately 40,000 employees work across D.C., Maryland, and Virginia locations—underscoring the company’s competitive positioning near federal agencies within the defense sector.

Accolades and criticism

In 2002, Northrop Grumman earned the distinction of Forbes "Company of the Year," celebrated for its exceptional innovation capabilities. As of 2019, it continues to be featured on Forbes list of "America's Best Large Employers." Since 2005, the corporation has actively supported educational initiatives and contributed substantial donations to numerous charitable organizations, underscoring its dedication to corporate social responsibility.

Notable American government figures, including John McCain, have publicly acknowledged Northrop Grumman's impactful contributions. The company was honored with the Ron Brown Award for Corporate Leadership in 2007, a prestigious presidential accolade that recognizes outstanding achievements in employee relations and community engagement.

Environmental record

Northrop Grumman has encountered significant environmental issues, being identified as a Primary Responsible Party under federal Superfund regulations at several hazardous waste locations. The firm is associated with 52 Superfund sites contaminated by toxic substances and was ranked as the 62nd-largest corporate air polluter in the United States in 2008, having emitted over 23,798 pounds of hazardous chemicals.

One notable contamination case involves soil pollution at Bethpage Community Park in New York, where industrial waste containing cadmium, arsenic, chromium-laden sludge, solvents, paints, and PCBs was historically deposited between 1949 and 1962. Toxic plumes from these deposits have impacted neighboring residential zones. In 2013, the Bethpage Water District initiated a multimillion-dollar lawsuit against Northrop Grumman over groundwater pollution; this dispute culminated in a $29 million settlement in 2022 allocated for remediation.

In 2003, Northrop Grumman participated in a $15 million settlement with the Environmental Protection Agency and state authorities to restore the Mattiace Petrochemical Superfund site located in Glen Cove, New York. The company also incurred penalties for hazardous waste violations at its Capistrano testing facility.

To address environmental concerns, Northrop Grumman established its Environmental Sustainability program along with an EHS Leadership Council in 2008 aimed at improving environmental outcomes and reducing carbon emissions. The Greenhouse Gas Inventory Project was launched to systematically measure and manage its emissions footprint.

The organization received recognition in 2010 as one of Computerworld’s Top 12 Green-IT Organizations due to its efforts in data center consolidation and energy efficiency. Nonetheless, by 2019, it was identified by the Political Economy Research Institute at the University of Massachusetts Amherst as the largest corporate contributor to water pollution in the United States.

Political contributions and governmental ties

Between 1990 and 2002, Northrop Grumman donated approximately $8.5 million to federal political campaigns. During the 2005–2006 election cycle alone, it contributed $1,011,260 to federal candidates, placing just behind defense contractors General Dynamics and Lockheed Martin. Around 63% of these contributions favored Republican candidates. James G. Roche, former head of Northrop Grumman Electronics Systems, served as Secretary of the Air Force under President George W. Bush and was later nominated for Army Secretary but withdrew amid controversy related to contract oversight and Air Force scandal management.

At least seven former executives or associates of Northrop Grumman held key roles within the Bush administration, including Deputy Secretary of Defense Paul Wolfowitz, Vice President’s Chief of Staff I. Lewis Libby, Pentagon Comptroller Dov S. Zakheim, and NASA Administrator Sean O’Keefe. Several of these officials departed government service amid various scandals.

Additionally, Northrop Grumman retains third-party lobbying firms to advance its strategic interests in critical markets; for instance, it partners with CMAX Communications in South Australia to support its global operations and policy objectives.

Controversies

During the late 1980s and early 1990s, Northrop encountered multiple significant criminal and civil legal challenges.

In 1995, Robert Ferro, an employee of TRW Inc. (which Northrop Grumman acquired in 2002), disclosed that satellite components intended for the U.S. Air Force were defective. Despite irregularities in the satellites, TRW concealed this information. Ferro subsequently filed a lawsuit against Northrop Grumman under federal whistleblower protection statutes. In 1999, a lawsuit was initiated against the company for knowingly delivering flawed aircraft to the Navy, with claims amounting to $210 million. The dispute concluded in 2009 when Northrop Grumman agreed to a $325 million settlement, awarding Ferro $48.8 million. The corporation asserted it believed TRW had complied appropriately with contractual obligations.

Federal authorities investigated Northrop Grumman in 2001 for alleged fraud exceeding $100 million, related to inflated charges on radar jammers installed on B-1, F-15, and B-2 bombers. In 2003, the company resolved a lawsuit accusing it of overcharging on space-related projects during the 1990s by paying $111.2 million.

Between August and September 2010, a computer system failure under a $2.4 billion contract in Virginia caused service interruptions affecting 45,000 residents and disrupted operations across 26 state agencies; some data loss was suspected. Northrop Grumman issued an apology and financed an inquiry into the incident.

In 2012, controversy emerged regarding Northrop Grumman's Integrated Air and Missile Defense Battle Command System (IBCS) following missed deadlines and unfavorable evaluations in 2016 that highlighted issues of immaturity and instability in the system.

The company's provision of weaponry to Israel led to protests at its facilities in San Diego and Plymouth, Minnesota during the Gaza conflict. Activists and students—including hunger strikers at Brown University—demanded divestment from Northrop Grumman due to its involvement.

International Traffic in Arms Regulations (ITAR) violations

In 2008, Northrop Grumman consented to pay a $15 million penalty for 110 breaches of the Arms Export Control Act and ITAR regulations. These violations stemmed from its subsidiary Litton Industries supplying parts of source code for Air Force One’s guidance systems to a Russian firm in 1998. Furthermore, between 1994 and 2003, Northrop Grumman failed to report transfers of computer guidance technologies to nations such as Angola, Indonesia, Israel, China, Ukraine, and Yemen to the U.S. State Department as required.