Equities

Northrop Grumman, L3Harris, and Honeywell Release Q1 2023 Earnings

Image: NYSE

A slew of prime space companies announced Q1 earnings this week and overall performance was in the green. With increased defense spending and no end in sight for the conflict in Ukraine, companies saw an uptick in space and defense revenue. 

Northrop Grumman: 

  • Operating income = $947M, a 6% increase YoY
  • Revenue = $9.3B, a 6% increase YoY
  • Total backlog = $77.5B
  • Space revenue = $3.4B, a 17% increase YoY

Northrop’s space systems division saw the biggest year on year revenue increase of all business areas. Northrop also completed a critical design review this quarter of an SDA communications satellite over the span of 13 months.

L3Harris:

  • Operating cash flow = $350M
  • Revenue = $4.5B, a 9% increase YoY
  • Total backlog = $24.5B
  • Space revenue = $1.7B, a 9% increase YoY due to a ramp-up of DoD, NASA, and NOAA programs

This quarter, L3Harris won a $750M NOAA contract to build a high-res imager for the GeoXO satellite system, a $400M contract to build an EO constellation for a European customer, a $225M contract for a classified responsive space program, and a deal with Japan’s Meteorological Agency. 

Honeywell:

  • Net income = $1.4B
  • Operating cash flow = -$784M
  • Sales = $8.9B, an 8% increase YoY
  • Total backlog = $30.3B

Honeywell’s aerospace division, which makes up 35% of total sales, grew by 14% YoY.  The company’s space and defense division returned to growth, underpinned by a strong order book.

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