Northrop Grumman Faces Losses in B-21 Program Due to Profit Decline

Northrop Grumman’s new B-21 Raider stealth bomber is experiencing financial challenges due to a decline in the company’s stock value.

According to The War Zone, the primary cause of these losses is a sharp 49% drop in stock value during the first quarter of 2025. Experts predict that the stock may continue to face further declines in the near future.

This is not the first financial hit from the B-21, with the manufacturer having disclosed a loss of nearly $1.2 billion on the program early last year.

The major factor in the losses was the $477 million hit from the B-21 program.

As noted by Northrop Grumman, such losses in large projects are fairly expected, but the current situation is complicated by political instability in the U.S. and trade restrictions imposed by the Donald Trump administration.

The company anticipates that the launch of serial production will enhance the program’s financial performance. The U.S. Air Force plans to order 145 bombers of this type, which are intended to replace the B-1B and B-2 aircraft.

The $477-million pre-tax loss was “largely relating to higher manufacturing costs” for the B-21.

“The main reason was changes in the manufacturing process implemented to accelerate production, as well as an increase in the projected cost of materials, partially due to the macroeconomic impact on raw material prices,” Kathy Warden, Northrop Grumman’s chair, chief executive officer, and president, explained.

According to Kathy Warden, the company will be able to achieve stable profits once serial production of the aircraft begins, but until then, Northrop Grumman will have to endure significant financial losses.

Northrop Grumman Corporation’s (NOC) stock price on the New York Stock Exchange (NYSE) closed at $464.08, representing an 11.16% decrease from the previous day. Over the last 24 hours, the stock lost 11.5% of its value—this decline is linked to the financial results for the first quarter of 2025, which were below analysts’ expectations.

Militarnyi previously reported that the duties imposed by US President Donald Trump on imports of goods from most countries worldwide pose risks to the US defense industry.