Northrop Grumman took a $71 million charge in its fiscal first quarter of 2026 linked to a solid rocket booster anomaly that has grounded United Launch Alliance’s Vulcan Centaur rocket.
The charge, recorded by the company’s Space Systems division as an “unfavorable adjustment” to earnings, stems from the evaluation and implementation of corrective actions for a GEM 63XL booster issue during a Q1 2026 launch, as disclosed in Northrop’s 10-Q filing with the Securities and Exchange Commission on April 21.
The anomaly occurred during the February 12 USSF-87 mission, when one of four GEM 63XL boosters shed debris approximately 65 seconds after liftoff. While United Launch Alliance initially termed it an “observation” that did not affect mission success, it later classified the event as a “significant performance anomaly” and has not launched the Vulcan Centaur since.
This marks the second time in four missions that a GEM 63XL booster has suffered a nozzle-related failure. During Vulcan’s Cert-2 flight in October 2024, the nozzle of one booster detached about 35 seconds into flight due to a manufacturing defect in an insulator within the nozzle, prompting design changes that were implemented before the August 2025 launch.
Despite the grounding, Space Force officials indicated at the 41st Space Symposium that they are evaluating a return to flight for the Vulcan Centaur in a configuration without any GEM 63XL solid rocket boosters. Such a setup could support low-energy missions, including payloads for the Space Development Agency’s missile-tracking and communications satellite constellations.
Lt. Gen. Philip Garrant, head of Space Systems Command, stated plainly: “If it doesn’t rely on solids, there’s no reason why we can’t launch,” reflecting a pragmatic shift in how the military views the grounded vehicle amid ongoing investigations.
The reliability concerns are already influencing launch allocations. Over the past two years, four GPS satellite launches have been moved from Vulcan to SpaceX’s Falcon 9 rockets, with the next GPS satellite also slated for Falcon 9. About half of the Space Force’s planned missions for the next four years were originally assigned to Vulcan, a share now under review as the service assesses the launch market over the next 18 to 24 months ahead of a new competition in 2028.
ULA and Northrop Grumman engineers continue to investigate the root cause of the nozzle failures, with plans to test an updated booster design at the complete of April 2026 and consider retrieving flown boosters from the ocean for forensic analysis.
The recurring nozzle issues have intensified scrutiny on solid rocket motor reliability in national security launches, prompting the Space Force to redistribute missions and consider alternatives including Blue Origin’s New Glenn, which is undergoing certification, as well as emerging vehicles like Neutron, Nova, Eclipse, and Terran R for future procurement cycles.
Why was the Vulcan Centaur rocket grounded after the February 12 launch?
The Vulcan Centaur was grounded after one of its four GEM 63XL solid rocket boosters shed debris approximately 65 seconds after liftoff during the USSF-87 mission, which ULA later classified as a significant performance anomaly requiring investigation before return to flight.
How is the Space Force planning to use the Vulcan rocket despite the grounding?
The Space Force is considering launching the Vulcan Centaur without its GEM 63XL solid rocket boosters for low-energy missions, such as Space Development Agency satellite constellations, based on the assessment that if the vehicle doesn’t rely on solids, there’s no technical barrier to launch.
What financial impact did the booster anomaly have on Northrop Grumman?
Northrop Grumman recorded a $71 million unfavorable adjustment to earnings in its fiscal first quarter of 2026, specifically for the evaluation and implementation of corrective actions related to the GEM 63XL solid rocket motor anomaly during a Q1 2026 launch.
