US defence and aerospace company Northrop Grumman has reported net earnings of $944m in the first quarter (Q1) of FY24, a 12% increase from $842m in Q1 of FY23. 

The company has attributed this increase in net earnings to a 13% boost in its operating income to $124m and a notable $36m rise in its non-operating FAS (financial assistance scheme) pension benefits, offset by a higher effective tax rate. 

For the three-month quarterly period ended on 31 March 2024, the company's diluted earnings per share grew 15% to $6.32 in Q1 FY24 compared with $5.50 in Q1 FY23.  

Net sales for the reported quarter of FY24 increased by 9% to $10.1bn from $9.3bn in the same period a year ago. 

This growth is attributed to continued strong demand for Northrop Grumman's products and services. 

Additionally, all four of Northrop Grumman's sectors reported higher sales, with Aeronautics Systems leading the way with an 18% growth in net sales, reaching $2.96bn in Q1 FY24 from $2.51bn in Q1 FY23.  

The Defence Systems segment also experienced growth, with a 3% increase in net sales to $1.41bn in Q1 FY24 versus $1.37bn in Q1 FY23.  

This was primarily due to the ramp-up of the stand-in attack weapon (SiAW) programme and higher volume on guided multiple launch rocket systems (GMLRS) as well as certain cannon systems and military ammunition programmes. 

The Mission Systems and Space Systems segments followed suit, with net sales growing 4% and 9% to $2.65bn and $3.65bn, respectively.  

Meanwhile, the company’s operating margin rate improved to 10.6%. 

Free cash flow saw a 3% rise, increasing by $35m, largely due to lower capital expenditures driven by timing. 

The company’s Q1 2024 net awards totalled $6.5bn and backlog totalled $78.9bn. 

Northrop Grumman chair, CEO and president Kathy Warden said: “Northrop Grumman’s first-quarter performance includes 9% sales and double-digit earnings growth, showing we are off to a strong start to the year.  

“We are also seeing the results of our focus on productivity and cost efficiency to improve operating margin in many of our businesses. Robust global defence spending and our strong backlog, along with expanding margins, continue to support our multi-year outlook for free cash flow growth.”