Northrop Grumman’s latest earnings report reveals a complex financial picture, with the company’s total backlog growing to $75.4 billion, up 3% year-over-year, indicating strong future demand. This increase was driven by international orders and growth in the company’s aeronautics and space sectors. The company booked $14.3 billion in new orders during the quarter, maintaining a healthy book-to-bill ratio of 1.3.

However, the company faces challenges in maintaining its operating margins, which decreased to 11% from 11.4% in the previous quarter. Northrop Grumman attributes this decline to increased costs and favorable items in the prior year. Despite these pressures, the company reaffirmed its full-year earnings guidance of $23.30 to $23.70 per share, reflecting confidence in its long-term strategy and growth prospects.