Northrop Grumman seeks accelerated B-21 production rate
Northrop Grumman is in negotiations with the U.S. Air Force about speeding production of the B-21 Raider aircraft.
During an earnings call Tuesday, Kathy Warden, Northrop’s chief executive, told analysts the company is in “discussions with the Air Force on the framework for an agreement to accelerate the B-21 production rate.”
“If an agreement is reached, we expect to deploy additional investment to achieve the increased rate, with the opportunity to earn improved returns,” she added.
Warden noted the funding required for a ramp-up was included in the sprawling legislative package approved by Congress and signed by President Donald Trump in July. The law allocated $4.5 billion “only for expansion of production capacity of B-21 long-range bomber aircraft and the purchase of aircraft only available through the expansion of production capacity.”
Warden said that the ongoing discussions have “been held up a bit because of the government shutdown and the availability of resources to continue those discussions,” but that Northrop executives “expect those to resume.”
Warden noted the second B-21 began flight tests last month after being delivered to Edwards Air Force Base in California.
“This starts a new phase of the test program, transitioning from general flight performance evaluation to integrating weapons and mission systems,” she said. “Our testing campaign also involves multiple B-21 aircraft undergoing ground tests prior to flying.”
The company reported July-September sales of $10.4 billion, up 4% from the same three-month period a year earlier. Quarterly profit totaled $1.1 billion, up 7% from the prior year.
Northrop reported sales growth in all of its business units, except the Space Systems division. The contractor attributed this decline to the winddown of work on a classified space program and the Next Generation Interceptor program, as well as reduced sales related to various Space Development Agency satellite programs. However, the space business reported a $100 million boost from NASA Commercial Resupply Services missions.
