Northrop Grumman, a U.S. defense company, exceeded quarterly profit expectations due to increased demand for military equipment amid rising geopolitical tensions. The ongoing conflicts in the Middle East and the Russia-Ukraine war have boosted arms demand globally, benefiting U.S. defense contractors. However, higher costs resulting from pandemic-related supply chain issues have impacted profit margins. Northrop expects sales in 2025 to be slightly below analysts' estimates, but anticipates strong international sales growth. The company also announced the sale of its training services business for $327 million.