Defense and aerospace giants raised their outlook for the year on Tuesday, citing stronger demand despite economic uncertainty and tariffs.
GE Aerospace, Northrop Grumman, RTX And Lockheed-Martin each beat Wall Street’s third-quarter profit estimates, with only Northrop missing revenue estimates, based on a survey of analysts by LSEG.
GE, which is both a defense supplier and a major engine manufacturer for Boeing and Airbus commercial aircraft, raised its full-year adjusted revenue growth outlook to “mid-teens” to “high-teens” and its free cash flow forecast from a range of $6.5 billion to $6.9 billion to a range of $7.1 billion to $7.3 billion.
The company said quarterly defense deliveries rose 83% from last year and deliveries of its LEAP engines, used to power planes like the Boeing 737 Max and Airbus A321neo, hit a record, up 40% year-on-year.
Its third-quarter adjusted revenue of $11.31 billion beat Wall Street’s estimate of $10.41 billion. The company’s shares are up more than 80% year to date.
Shares of RTX rose about 9% in morning trading after the major defense contractor, whose business makes products such as cabin interiors and commercial aircraft engines, raised its full-year adjusted profit outlook from a range of $5.80 to $5.95 to a range of $6.10 to $6.20.
It also raised its adjusted sales forecast from a range of $84.75 billion to $85.5 billion to a range of $86.5 billion to $87 billion.
The company cited its ability to withstand the impact of tariffs and other macroeconomic uncertainties as positive signals for its growth. In July, the company estimated tariff-related costs at $500 million and reduced its forecast.
On Tuesday, RTX reported positive growth in its aerospace and defense units, with total revenue up 12% to $22.48 billion in the third quarter.
“We remain focused on fulfilling our $251 billion backlog and increasing our production to support the advancement of critical programs, while investing in next-generation products and services that meet the needs of our customers,” CEO Chris Calio said in a statement.
Northrop Grumman saw similar growth. The company reported earnings of $7.67 per share, well above Wall Street’s estimate of $6.46 per share, according to LSEG. Northrop’s sales rose 4% year over year, while sales in its defense systems division jumped 14%.
Although the company missed Wall Street’s revenue estimate, it raised its full-year adjusted earnings per share forecast by 65 cents, to a range of $25.65 to $26.05.
“As a result of this performance and our positive outlook for the remainder of the year, we are once again increasing our 2025 EPS guidance,” Northrop CEO Kathy Warden said in an earnings release. “I am excited about our continued progress to urgently meet our customers’ needs.”
Lockheed Martin, the last of four stocks released Tuesday morning, also beat analysts’ expectations for the quarter ended September 30. The defense contractor reported earnings of $6.95 per share. on revenue of $18.61 billion, beating Wall Street estimates of $6.36 per share and $18.56 billion, respectively.
CEO Jim Taiclet said the company was seeing “unprecedented demand” from customers in the United States and around the world, leading Lockheed to “significantly” increase its production capacity across the company’s various divisions.
Lockheed raised its full-year sales forecast and now expects revenue to range from $74.25 billion to $74.75 billion. It also raised its earnings forecast from a range of $21.70 to $22 to a range of $22.15 to $22.35.
“We are aggressively investing in both new digital technologies and the physical production capacity needed to meet the key defense priorities of the United States and its allies – and we are doing so in partnership with a number of leading technology partners, large and small,” Taiclet said in a statement.
He added that the US Golden Dome project will be a major growth driver as construction begins. The cost of the project is estimated at around $175 billion, of which $25 billion is already budgeted in next year’s defense financing plan.
The United States has increased its defense spending over the past year. For fiscal year 2024, the Biden-Harris administration has requested an $842 billion budget for the Department of Defense, $100 billion more than fiscal year 2022 — although final allocations from Congress may differ from these figures.
For 2025, the Biden-Harris administration has requested a budget of $849.8 billion. The government’s budgetary priorities included responding to the threat from countries such as Russia, Iran and North Korea.
