NOC - Northrop Grumman Corporation. (NOC) Q4 2023 Earnings Call Transcript

2024-01-25 12:33:04 ET

Northrop Grumman Corporation. (NOC)

Q4 2023 Earnings Conference Call

January 25, 2024, 09.00 AM ET

Company Participants

Todd Ernst - Vice President, Investor Relations

Kathy Warden - Chair, CEO and President

Dave Keffer - CFO

Conference Call Participants

Kristine Liwag - Morgan Stanley

Richard Safran - Seaport Global

Ronald Epstein - Bank of America

Douglas Harned - Bernstein

Sheila Kahyaoglu - Jefferies

Seth Seifman - JPMorgan

Cai von Rumohr - TD Cowen

Gavin Parsons - UBS

Scott Deuschle - Deutsche Bank

Kenneth Herbert - RBC Capital Markets

Myles Walton - Wolfe Research

Robert Spingarn - Melius Research

George Shapiro - Shapiro Research

Jason Gursky - Citi

Presentation

Operator

Good day, ladies and gentlemen. Welcome to Northrop Grumman's Fourth Quarter and Year-End 2023 Conference Call. Today's call is being recorded. My name is Josh, and I will be your operator today. [Operator Instructions] I would now like to turn the call over to your host, Mr. Todd Ernst, Vice President, Investor Relations. Mr. Ernst, please proceed.

Todd Ernst

Thanks, Josh. Good morning and welcome to Northrop Grumman's Fourth Quarter 2023 Conference Call. This morning, we'll refer to a presentation that is posted to our IR website. Before we get started, matters discussed on today's call, including guidance and outlooks for 2024 and beyond reflect the company's judgment based on information available at the time of this call. They constitute forward-looking statements pursuant to safe harbor provisions of federal securities laws. Forward-looking statements involve risks and uncertainties, including those noted in today's press release and our SEC filings. These risks and uncertainties may cause actual company results to differ materially.

Today's call will include non-GAAP financial measures that are reconciled to our GAAP results in our earnings release. And on the call today are Kathy Warden, our Chair, CEO and President; and Dave Keffer, our CFO.

At this time, I'd like to turn the call over to Kathy. Kathy?

Kathy Warden

Thanks Todd. Good morning everyone and thank you for joining us. Before discussing our 2023 results, I wanted to take a moment to thank our team for their hard work and dedication to our important mission. Our talented workforce which is now over a 100,000 strong continues to deliver some of the most advanced technologies in the world. These capabilities are used by our customer’s everyday to defend freedom and deter aggression around the globe.

The geopolitical landscape has grown even more complex driving continued increases in global security spending. Our strategies has positioned us well to compete and win in this growing market which has translated into accelerating topline growth for Northrop Grumman.

Revenue increased by over 7% in 2023 [indiscernible] more than a billion above the midpoint of our original 2023 guidance. In addition, our book-to-bill for the year was 1.14 times, that’s in line with our exceptional four year average. As a result of this award strength, we achieved a new record backlog which now exceeds $84 billion and now provides a healthy foundation for our continued growth....

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