Northrop Grumman lost $71 million from its bottom line because of its solid-fueled booster failures
In its most recent financial statement, Northrop Grumman admitted it took a $71 million charge due to nozzle failures on two of its solid-fueled boosters, dubbed GEM 63XL, during two different launches of ULA’s Vulcan rocket.
In a statement about its first-quarter financial results, the company said its Space Systems division recorded a $71 million “unfavorable adjustment” to earnings at completion on its GEM 63XL booster “associated with a launch anomaly that occurred during the first quarter.”
The GEM 63XL solid-fuel booster is used on United Launch Alliance’s Vulcan Centaur rocket. On a Feb. 12 launch, one of four boosters shed debris about 65 seconds after liftoff. The “observation,” as ULA termed it initially, did not affect the success of the USSF-87 mission, placing its payload into its planned geosynchronous orbit.
ULA later called the incident a “significant performance anomaly” with the booster that it would investigate before returning Vulcan to flight. The vehicle has not launched since then.
A similar incidence took place during an earlier Vulcan launch, with the rocket’s core stage and the remaining undamaged boosters getting the payload into the proper orbit. The continuing problem however has now grounded Vulcan, though the military is considering using it for some small payload launches, without the GEM strap-on boosters.
As a result, the Pentagon has already shifted several launches from ULA to SpaceX, costing ULA a significant amount of revenue. In addition, Vulcan’s grounding will impact the launch of Amazon’s Leo internet constellation, which had a major contract with ULA to get its Leo satellites into orbit.
In its most recent financial statement, Northrop Grumman admitted it took a $71 million charge due to nozzle failures on two of its solid-fueled boosters, dubbed GEM 63XL, during two different launches of ULA’s Vulcan rocket.
In a statement about its first-quarter financial results, the company said its Space Systems division recorded a $71 million “unfavorable adjustment” to earnings at completion on its GEM 63XL booster “associated with a launch anomaly that occurred during the first quarter.”
The GEM 63XL solid-fuel booster is used on United Launch Alliance’s Vulcan Centaur rocket. On a Feb. 12 launch, one of four boosters shed debris about 65 seconds after liftoff. The “observation,” as ULA termed it initially, did not affect the success of the USSF-87 mission, placing its payload into its planned geosynchronous orbit.
ULA later called the incident a “significant performance anomaly” with the booster that it would investigate before returning Vulcan to flight. The vehicle has not launched since then.
A similar incidence took place during an earlier Vulcan launch, with the rocket’s core stage and the remaining undamaged boosters getting the payload into the proper orbit. The continuing problem however has now grounded Vulcan, though the military is considering using it for some small payload launches, without the GEM strap-on boosters.
As a result, the Pentagon has already shifted several launches from ULA to SpaceX, costing ULA a significant amount of revenue. In addition, Vulcan’s grounding will impact the launch of Amazon’s Leo internet constellation, which had a major contract with ULA to get its Leo satellites into orbit.













