Northrop Grumman Corporation secured a U.S. Navy contract modification for up to nine additional Surface Electronic Warfare Improvement Program (SEWIP) Block 3 systems, bringing the total number of systems under contract to 24. The modification includes a first shipset slated for installation on an aircraft carrier, underscoring the Navy’s confidence in the company’s advanced electronic‑warfare technology.
The new contract is expected to lift Northrop Grumman’s defense‑systems revenue and reinforce its position in the maritime domain. In the fourth quarter of 2025 the company reported a 10% rise in sales to $11.7 billion and a full‑year revenue of $42.0 billion, while guidance for fiscal 2026 projects mid‑single‑digit growth. A record backlog of $95.7 billion, driven by strong net awards in 2025, provides additional revenue visibility.
"Our commitment to innovation means we’re not just delivering systems; we’re redefining naval capabilities," said Vice President Lara Kopf. CEO Kathy Warden added that the company is experiencing an “unprecedented demand cycle” across global defense markets, highlighting the strategic importance of the SEWIP Block 3 program.
Analysts have responded positively to the contract win, upgrading the company to a strong‑buy rating and raising price targets. The upgrade reflects confidence in Northrop Grumman’s continued ability to secure high‑value defense contracts and the growing demand for maritime electronic‑warfare solutions amid escalating geopolitical tensions.
The SEWIP Block 3 upgrade adds an electronic‑attack capability to the AN/SLQ‑32 system, leveraging gallium‑nitride transmit/receive modules and a software‑defined architecture. By enhancing ship survivability against anti‑ship missiles, the program positions Northrop Grumman to capture a growing share of the defense market as navies modernize their electronic‑warfare suites.
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