By Nicholas G. Miller
Shares of RTX and GE Aerospace rose after both companies raised their full-year guidance, while defense industry peers Northrop Grumman and Lockheed Martin lagged after reporting weaker outlooks.
RTX gained 8.7% and GE ticked up 1.6%, while Lockheed Martin slid 1.9% and Northrop Grumman shares fell 2% before recovering to be around flat on the day.
RTX said Tuesday it landed $37 billion in awards last quarter, including $23 billion in defense, and now has a backlog of $251 billion, including $103 billion for defense. The company said it was seeing growing demand for munitions and missile defense.
Meanwhile, GE reported 26% revenue growth in its defense and propulsion technologies segment, and an 83% increase in defense-engine deliveries.
GE and RTX both raised their earnings and revenue outlook for the year.
Also on Tuesday, Lockheed Martin raised its full-year earnings outlook and reported 12% higher sales for the third quarter, led by its missiles and fire-control unit. But its new full-year adjusted earnings outlook of $22.15 to $22.35 a share assumes fourth-quarter earnings of $6.46 to $6.66 a share, below analysts' forecast of $6.83.
Separately, Northrop Grumman trimmed its full-year revenue guidance, citing delays on certain military awards, which have been exacerbated by the government shutdown. "We have certainly seen in recent weeks the government shutdown having some impact on the government's ability to move quickly, to make decisions and have the right resources available," said Chief Executive Kathy Warden in the company's earnings call.
Still, Northrop Grumman said the increased military spending across the globe due to intensifying geopolitical conflicts will continue to boost the defense industry in the long term. "Our allies are committed to modernizing their armed forces and investing in deterrent capabilities, and the current geopolitical environment has increased the urgency for them to act now. This is being reflected in a significant increase in defense spending that is expected to carry well into the next decade," Warden said.
Write to Nicholas G. Miller at nicholas.miller@wsj.com.
(END) Dow Jones Newswires
October 21, 2025 11:19 ET (15:19 GMT)
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