Northrop Grumman Corporation: 10-K Risk Factor Changes

2026 vs 2025 · SEC EDGAR · 2026-05-22

Other years: 2025 vs 2024 · 2024 vs 2023

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The summary below was generated by an AI language model and may contain errors or omissions. All other content on this page is deterministically extracted from the original SEC EDGAR filing.

Northrop Grumman's 2026 10-K reflects a shift toward market and geopolitical risk exposure, adding explicit disclosures on competitive dynamics and international business risks while removing four corporate header entries. The 17 substantively modified risks indicate material refinements to existing disclosures, particularly regarding macroeconomic challenges and government procurement regulations, suggesting the company reassessed the scope and articulation of established risk categories. With 10 risks remaining unchanged, the structural evolution represents a moderate recalibration rather than a fundamental overhaul of the risk framework.

✓ Deterministic extraction — no AI-generated data

Classification is based on semantic text similarity scoring and may include approximations. “No match” means no high-confidence textual match was found — not necessarily that a section was removed.

New Risks

Removed

Modified

Unchanged

🟢 New in Current Filing

•Competitive dynamics within our markets may affect our ability to win new contracts and result in reduced revenues, which could have a material adverse effect on our financial position, results of operations and/or cash flows.

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We operate in highly competitive markets and our competitors may have more financial capacity or more extensive or specialized engineering, technical, manufacturing, marketing or servicing capabilities. They may be willing to accept more risk or lower profitability in competing for contracts. We have seen, and anticipate we will continue to see, increased competition, including in some of our core markets, especially as a result of our customers’ budget pressures and their focus on speed, affordability and competition. The U.S. government’s continued emphasis on reforming its acquisition processes, including procuring commercial products and services and utilizing non-Federal Acquisition Regulation-based procurement methods, such as Other Transaction Authority (OTA) agreements and other contract types, has facilitated, and may continue to facilitate, participation by new and emerging market entrants, which has increased and may in the future further increase competition for the programs we pursue, which could result in reduced contract opportunities, increased pricing pressure, and/or demands to accept less favorable terms. In certain circumstances, these alternative contracting models may place increased risk on the contractor, such as the potential for greater assumption of development costs or for limited reimbursement recourse in certain situations. Further, certain non-Federal Acquisition Regulation-based procurement methods, such as OTA awards, are not subject to all of the procurement requirements that typically apply to DoW contracts and rights to protest such awards may be more limited than for other contracts. Our customers are increasingly working with commercial contractors as well as newer entrants and startups in the defense industry for some products and services. Such contractors may have lower cost, more agile operating structures and access to capital and talent, a greater ability to leverage changes in the customer’s acquisition -10- -10- -10-

🟢 New in Current Filing NORTHROP GRUMMAN CORPORATION 🔒

🟢 New in Current Filing •Our international business exposes us to additional risks, including risks related to geopolitical and economic factors, laws and regulations, which could have a material adverse effect on our financial position, results of operations and/or cash flows. 🔒

🟢 New in Current Filing NORTHROP GRUMMAN CORPORATION 🔒

🟢 New in Current Filing FORWARD-LOOKING STATEMENTS AND PROJECTIONS 🔒

🔴 No Match in Current Filing NORTHROP GRUMMAN CORPORATION 🔒

🟡 Modified •The global macroeconomic environment has negatively impacted and could in the future negatively impact our business, and if we are unable to mitigate such challenges, it could have a material adverse effect on our financial position, results of operations and/or cash flows. 🔒

🟡 Modified •As a U.S. government contractor, we and our partners are subject to various procurement and other laws, regulations and contract terms applicable to our industry, as well as those more broadly applicable to industry, and changes in such laws, regulations or terms, any negative findings by the U.S. government as to our or our partners’ compliance with them, and changes in our customers’ business practices globally could affect our ability to compete and have a material adverse effect on our financial position, results of operations and/or cash flows. 🔒

🟡 Modified NORTHROP GRUMMAN CORPORATION 🔒

🟡 Modified •Our future success depends, in part, on our ability to innovate, develop new products and technologies, progress and benefit from digital transformation and maintain technologies, facilities and equipment to win new competitions and meet the needs of our customers. Failure to do so or meet our contractual obligations that require innovative design could adversely affect our profitability, reputation and future prospects and have a material adverse effect on our financial condition, results of operations and/or cash flows. 🔒

🟡 Modified NORTHROP GRUMMAN CORPORATION 🔒

🟡 Modified •Our business is subject to significant disruptions caused by natural disasters or other events outside of our control, which could have a material adverse effect on our financial position, results of operations and/or cash flows. 🔒

🟡 Modified •Cyber and other security threats or disruptions could have a material adverse effect on our reputation and our financial position, results of operations and/or cash flows. 🔒

🟡 Modified NORTHROP GRUMMAN CORPORATION 🔒

🟡 Modified •Environmental matters, unforeseen costs associated with compliance and remediation efforts, and government and third-party claims, could have a material adverse effect on our reputation and our financial position, results of operations and/or cash flows. 🔒

🟡 Modified •We use estimates when accounting for contracts. Contract cost growth or changes in estimated contract revenues and costs can affect our profitability and could have a material adverse effect on our financial position, results of operations and/or cash flows. 🔒

🟡 Modified •Our earnings and profitability depend, in part, on the performance, financial viability, and compliance with regulatory requirements globally of our subcontractors and suppliers, as well as on the availability and pricing of highly skilled labor, raw materials, chemicals, parts, and components. The disruption of one or more of these factors could have a material adverse effect on our financial position, results of operations and/or cash flows. 🔒

🟡 Modified •We depend heavily on a single customer, the U.S. government, for a substantial portion of our business. Changes in this customer’s strategies, priorities, preferences and spending could have a material adverse effect on our financial position, results of operations and/or cash flows. 🔒

🟡 Modified NORTHROP GRUMMAN CORPORATION 🔒

25 more changes in this filing

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