Northrop Grumman’s profits plunged 49% in the first quarter of 2025, driven largely by a $477 million charge tied to its B-21 Raider stealth bomber program.

The company said the charge resulted from changes in the B-21’s manufacturing process, aimed at accelerating production. While the U.S. Air Force currently plans to acquire 100 B-21s, officials have indicated that as many as 145 may be needed to meet global security demands.

CEO Kathy Warden said the shift allows greater production flexibility and “will enable a higher production rate.” She emphasized that the change is a one-time adjustment.

The latest hit follows a $1.2 billion loss on the program disclosed in early 2024.

Northrop posted net income of $481 million, or $3.32 per share, down from $944 million, or $6.32 per share, a year earlier. Excluding the B-21 charge, earnings would have been $6.06 per share—still shy of analysts’ $6.24 estimate.

Quarterly sales also fell 7% to $9.47 billion, below the $9.92 billion forecast. The company attributed the decline to the phaseout of legacy space and aircraft programs, partially offset by growth in its mission systems and defense units.

Investors reacted swiftly. Northrop shares slid more than 13%, closing Tuesday at $464.08—the steepest decline in the S&P 500 that day. The stock is now nearly 15% below its 52-week high.

Despite the setback, Northrop maintained its full-year sales forecast of $42 billion to $42.5 billion. It also raised its 2025 earnings guidance to between $27.85 and $28.25 per share, up from a prior range of $24.95 to $25.35.