Pentagon awards $1.3 billion in satellite contracts to Northrop Grumman, York

Takeaways

Northrop Grumman and York Space Systems have been chosen by the Pentagon to build 100 communications satellites for a total of $1.3 billion.
Northrop will receive $732 million for 38 satellites, while York will receive $617 million for 62 satellites.
The first launches are planned for 2026.

Northrop Grumman (NOC) and the private company York Space Systems have been chosen by the Pentagon to build 100 communications satellites for a total amount of $1.3 billion.

The Space Development Agency (SDA) announced that Northrop Grumman will receive $732 million to deliver and operate 38 T2TL-Alpha space vehicles in two orbital aircraft. The company will also provide “associated land systems as well as operations and sustainment capabilities.”

York's contract is valued at $617 million, to execute a research and development program to supply and operate 62 T2TL-Alpha in eight orbital aircraft, with the same ground and sustainment requirements.

The SDA explained that these awards are part of its Proliferated Warfighter space architecture, aimed at providing access to global communications and helping support missions such as “beyond line of sight targeting, missile warning and tracking advanced missile threats.”

The director of the SDA, Derek Tournear said the satellite program “will improve responsiveness, resilience, survivability and combat capability beyond our current space systems architecture.”

The first launches of T2TL- Alpha are expected in 2026.

Shares of Northrop Grumman fell 0.9% on Monday and 13% year to date.