Key Takeaways
- The U.S. Army awarded Northrop Grumman a contract modification worth $158.8 million
- Contract W58RGZ-26-C-0009 represents definitization of a previously provisional agreement
- Operations will take place at the company’s Rolling Meadows, Illinois location
- Complete funding from Fiscal 2026 revolving funds was obligated upon contract award
- Investment research firm Zacks identifies NOC as an attractive value opportunity
On August 13, 2026, defense industry giant Northrop Grumman (NOC) secured a contract modification from the U.S. Army valued at $158.8 million. Shares of NOC advanced 0.64% during the trading session.
Northrop Grumman Corporation, NOC
The contract adjustment, totaling precisely $158,831,128, is associated with contract identifier W58RGZ-26-C-0009. This modification finalizes definitization of a pre-existing arrangement between Northrop and the Army.
Contract definitization refers to the formal establishment of final terms, pricing structures, and contractual conditions for agreements that were initially undefinitized. Essentially, this transforms a tentative contract into a fully executed, binding commitment.
The modification’s scope of work will be executed entirely at Northrop’s operational base in Rolling Meadows, Illinois. Contract performance is scheduled for completion by August 13, 2026.
Complete funding of $158,831,128 sourced from Fiscal 2026 revolving funds was committed at the moment of contract award. This indicates the financial resources are already earmarked and allocated.
Army Contracting Command, operating from its Redstone Arsenal location in Alabama, served as the contracting authority for this transaction.
Investment Analysts Point to Value Opportunity in NOC
In a separate development, Zacks Equity Research identified NOC as an attractive value investment on August 14, 2026. The research organization employs its proprietary Style Scores methodology to evaluate equities based on value, growth, and momentum characteristics.
NOC received positive ratings within Zacks’ Value Style Score framework, which analyzes key financial metrics such as P/E ratio, PEG ratio, Price/Sales, and Price/Cash Flow. Strong value scores indicate a security may be undervalued relative to its intrinsic worth.
The Zacks Rank, the firm’s primary rating system, is based on earnings estimate revisions from analysts. According to Zacks, equities with a #1 (Strong Buy) ranking have delivered average annual returns of 23.94% since the system’s inception in 1988.
Zacks also utilizes the VGM Score, which synthesizes value, growth, and momentum factors into a composite indicator. The firm considers stocks carrying a Rank of #1 or #2 combined with Style Scores of A or B to represent the most compelling investment opportunities.
Additional Contract Details
Northrop Grumman maintains its corporate headquarters in Rolling Meadows, Illinois. The corporation ranks among the leading U.S. defense contractors, operating diverse programs spanning aerospace, ground systems, naval platforms, space technologies, and cybersecurity.
This latest modification expands upon Northrop’s ongoing relationship with the U.S. Army. Redstone Arsenal’s Army Contracting Command oversees substantial defense acquisition activities.
The $158.8 million contract modification doesn’t introduce additional work scope; instead, it establishes definitive pricing and contractual terms for activities already in progress.
Revolving funds, the financing source for this obligation, represent a governmental budgetary instrument that permits funds to be recycled as expenditures occur and revenues are collected.
Neither the Army nor Northrop disclosed specifics regarding the particular defense program or weapons system associated with this contract modification.
NOC shares concluded the August 13, 2026 trading day with a gain of 0.64%.
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