Global Conflicts Drive Record Profits for US Defense Giants Lockheed Martin and RTX in 2025

Lockheed Martin announced an increased 2025 revenue and profit forecast on Tuesday as global conflicts drive weapons demand.

Major defense contractors Lockheed Martin and RTX reported robust profit projections for the remainder of the year, with financial results reflecting heightened demand for weaponry stemming from ongoing conflicts in the Middle East and the extended Russia-Ukraine war.

Both companies identified missiles, munitions, and air defense systems as key revenue generators, while Lockheed Martin secured a substantial $12.5 billion Pentagon contract for 296 F-35 fighter jets.

RTX, previously known as Raytheon, experienced additional sales growth from its maintenance and repair services, as airlines continue operating older aircraft amid new commercial jet shortages. The company also reported improved jet engine sales performance.

Contrastingly, Northrop Grumman reduced its full-year 2025 sales forecast, while simultaneously projecting higher-than-expected profitability. The company attributed the sales adjustment to timing issues related to certain weapons manufacturing contracts.

Beyond immediate weapons replenishment needs from current global conflicts, the Trump administration's Golden Dome missile defense initiative has significantly enhanced growth prospects for prime defense contractors.

During a post-earnings call with Wall Street analysts, RTX management highlighted potential additional backlog growth from both munitions replenishment and billions in anticipated U.S. funding for the Golden Dome project.

The Golden Dome system carries an estimated $175 billion price tag, though uncertainty remains regarding its fundamental architecture, as specifications for required launchers, interceptors, ground stations, and missile sites are yet to be determined.

Major defense contractors including Lockheed, Northrop, RTX, and Boeing possess various missile defense systems expected to contribute to this comprehensive defense shield.

Northrop CEO Kathy Warden expressed enthusiasm during Tuesday's analyst call, stating, "We're very pleased to see the urgency the administration is placing on protecting the homeland and the set of opportunities that creates."

STRONG RESULTS

Lockheed Martin, the world's largest defense contractor, raised its 2025 revenue and profit forecast on Tuesday, driven by persistent demand for fighter jets and munitions amid increasing geopolitical tensions.

The F-35 stealth fighter manufacturer reported an 11.9% increase in aeronautics segment sales to $7.26 billion for the third quarter.

Lockheed now forecasts per-share profit between $22.15 and $22.35 for 2025, up from its previous projection of $21.70 to $22.00.

The company also increased the lower end of its sales outlook to $74.25 billion from $73.75 billion, while maintaining the upper limit at $74.75 billion.

Aerospace and defense giant RTX similarly raised its full-year profit and revenue forecast on Tuesday, as growing demand for missiles and services strengthened its position against potential tariff impacts.

The ongoing shortage of new commercial aircraft continues boosting sales for maintenance and repair providers like RTX, which benefit from airlines operating older, maintenance-intensive fleets.

RTX, which manufactures GTF engines in competition with CFM International, has benefited from increased demand as aircraft manufacturers accelerate production.

The company now expects full-year adjusted sales between $86.5 billion and $87 billion, revised upward from its previous forecast of $84.75 billion to $85.5 billion.

RTX also raised its adjusted profit forecast to between $6.10 and $6.20 per share for 2025, compared to the previous $5.80 to $5.95 projection.

Northrop Grumman, which reported results Tuesday as well, increased its 2025 profit forecast for a second consecutive quarter but reduced its full-year sales outlook to between $41.7 billion and $41.9 billion, down from the previous projection of $42.05 billion to $42.25 billion.