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Northrop Secures a Deal for Joint Domain Command and Control System

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Key Takeaways

  • Northrop secured a $99.1M contract to support the DOD's Joint All-Domain Command and Control vision.
  • Work will span multiple U.S. sites, with completion expected by March 2028.
  • Rising global demand for C4ISR tech boosts Northrop's long-standing defense expertise.

Northrop Grumman Corporation (NOC - Free Report) recently secured a contract valued at $99.1 million to support the Department of Defense’s (DOD) Combined Joint All-Domain Command and Control (JADC2) program. This contract involves developing the Initial Providence Distributed Battle Management Command and Control System Minimum Viable Products, which will provide resilient, interoperable and secure information dominance solutions using higher bandwidth and low-latency data rates.

The award has been provided by the Naval Air Systems Command, Patuxent River, MD. The work related to the deal will be performed across multiple locations across the United States. The project is expected to be completed by March 2028.

What’s Favoring NOC Stock?

With countries worldwide enhancing their defense capabilities, spending on advanced military systems, including Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance (C4ISR) technologies, has been rapidly increasing.

This is likely to have prompted the Mordor Intelligence firm to forecast a compound annual growth rate of 3.2% for the global C4ISR market during the 2025-2030 time period.

This should benefit Northrop, a prominent forerunner in military-grade C4ISR technologies. The company has been delivering end-to-end communications and advanced networking capabilities for the United States and allied military forces operating across multiple battlespace domains for the past 60 years. As an example of its proven expertise in C4ISR technologies, worth mentioning is NOC’s autonomous high-altitude, long-endurance systems, which offer unrivaled situational awareness over land and maritime domains.

Prospects of NOC’s Peers

Other defense companies that are likely to enjoy the perks of the expanding C4ISR market have been discussed below.

Lockheed Martin Corporation (LMT - Free Report) : The company provides advanced systems for surveillance, reconnaissance and battle management. One of its key programs includes the Command Control Battle Management Communications, which is the first battle management system capable of integrating across domains.

The company’s long-term (three to five years) earnings growth rate is 10.3%. The Zacks Consensus Estimate for LMT’s 2025 sales indicates year-over-year growth of 4.6%.

RTX Corporation (RTX - Free Report) : The company focuses on providing integrated defense systems, radar and missile warning systems that improve situational awareness and threat detection. Its Intelligence, Surveillance and Reconnaissance systems and multi-mission sensors are critical to both U.S. and international defense operations.

The company’s long-term earnings growth rate is 9.1%. The Zacks Consensus Estimate for RTX’s 2025 sales indicates year-over-year growth of 6.1%.

General Dynamics Corporation (GD - Free Report) : The company offers advanced communication systems, command and control solutions and ISR platforms that support military forces worldwide. Notably, its subsidiary in Canada offers the Land C4ISR system to the nation’s armed forces to coordinate and conduct modern operations.

The company’s long-term earnings growth rate is 10.7%. The Zacks Consensus Estimate for GD’s 2025 sales indicates year-over-year growth of 7.2%.

NOC Stock’s Price Movement

Shares of NOC have gained 23.5% in the past three months compared with the industry’s 7.2% growth.

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NOC’s Zacks Rank

NOC currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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