Northrop Secures a Contract to Boost US' Underwater Capabilities

Zacks Equity Research
4 min read

In This Article:

Northrop Grumman Corp. NOC recently clinched a contract to provide ongoing support for the Trident II (D-5) deployed ballistic missile submarines and the guided missile submarines (SSGN) underwater launcher systems (ULS). The award has been offered by the Strategic Systems Programs, Washington, D.C.

Details of the Deal

Valued at $42.4 million, the contract is expected to be completed by Sept. 30, 2031. Per the terms of the deal, Northrop will offer technical engineering support, like field services, and integration for D-5 and the SSGN attack weapon system.

A major portion of the work related to this deal will be carried out in Sunnyvale, CA, Bangor, WA, and Kings Bay, GA.

NOC’s Undersea Capabilities

Northrop Grumman is the premier provider of missile launch systems for naval submarines and surface ships. Notably, every vertical launch system on U.S. Navy submarines today can trace its origin to NOC’s Underwater Launch Center of Excellence in Sunnyvale, CA.

Its maritime capabilities can be further gauged from the fact that its sensors are fielded on U.S. submarines like the Virginia Class submarines, which, in turn, positions Northrop Grumman to fully operationalize the U.S. Navy’s Project Overmatch and Distributed Maritime Operations strategy.

A notable undersea technology offered by Northrop is the μSAS sensor, which allows uncrewed undersea vehicles and submarines to capture sharp images of the ocean floor. This sensor has proved to be a useful device in mine hunting, apart from its non-defense applications like finding ship wreckages.

Growth Prospects for NOC Stock

In recent times, increased demand for undersea warfare systems has been witnessed amid rising geopolitical instability worldwide and the advent of more advanced and stealth underwater vehicles, including submarines. Notably, such underwater vehicles, along with their state-of-the-art communications and sensor systems, play a crucial role in addressing security threats and maintaining battlespace dominance in the underwater environments of a nation.

This must have prompted the Allied Market Research firm to predict a CAGR of 4.7% from 2022 to 2031 for the undersea warfare systems market.

Such a solid growth prospect should benefit Northrop, considering its proven dominance in underwater warfare.

Notably, apart from the μSAS sensor, Northrop manufactures NiobiCon, which offers an innovative, safe way of making electrical connections underwater. This novel wet-mate connector technology allows for power transfer and data exchange without seals, oil or moving parts.

Recommended Stories