The biggest U.S. aerospace and defense manufacturers posted strong third-quarter results this week, underscoring robust global demand for advanced military systems and aircraft engines, even as guidance revisions and lingering supply chain pressures tempered investor optimism.
Across the board, Lockheed Martin, Northrop Grumman, RTX and GE Aerospace reported higher earnings and revenue, reflecting sustained U.S. defense spending, steady order backlogs and the ongoing recovery in commercial aviation.
Lockheed Martin: Earnings beat, but cash flow outlook tightens
Lockheed Martin (NYSE:LMT) topped Wall Street estimates with adjusted earnings of $6.95 a share and revenue of $18.6 billion, driven by strong performance in its aeronautics and missile divisions. The company reaffirmed its sales forecast of up to $74.75 billion and raised its full-year profit guidance to $22.35 a share.
However, the defense giant trimmed its free cash flow target to about $6.6 billion, narrowing its earlier range of $6.6 billion–$6.8 billion. The move signaled a more cautious outlook despite record demand, sending shares down as much as 4.6%, their steepest intraday drop since July.
Lockheed (NYSE:LMT) reported $3.7 billion in operating cash flow, returned $1.8 billion to shareholders, and boosted its dividend by 5% to $3.45 per share. Its $179 billion backlog, spanning programs such as the F-35 fighter jet, CH-53K helicopter, and PAC-3 missile, underscores its long-term visibility.
Northrop Grumman: Strong profit, softer sales
Northrop Grumman (NYSE:NOC) delivered adjusted earnings of $7.67 per share, up 10% year over year and well above forecasts, aided by accelerating work on its Sentinel intercontinental ballistic missile program.
Revenue came in slightly below expectations at $10.4 billion, pressured by the wind-down of older space contracts. The company lowered full-year sales guidance to a range of $41.7 billion–$41.9 billion, but raised its profit outlook to $25.65–$26.05 per share.
Northrop’s defense systems unit surged 14%, while mission systems rose 10%. New contract awards totaled $12.2 billion, pushing backlog to $91.4 billion, with nearly $4.5 billion tied to classified programs. Its shares were little changed Tuesday.
RTX: Profit forecast raised, momentum in commercial aerospace
RTX (NYSE:RTX) — the parent company of Pratt & Whitney and Raytheon Missiles & Defense — raised its 2025 adjusted profit forecast to $6.10 to $6.20 a share, above prior guidance and analyst expectations.
Third-quarter earnings of $1.70 a share also beat estimates, as sales and operating profit grew across all divisions. The results reflect a strong rebound in commercial aviation and resilient defense demand.
RTX shares jumped 7.7% to a record high, as investors cheered progress in mitigating tariff-related costs and expanding aftermarket services. The company also highlighted new contracts, including a 14-year maintenance agreement between Pratt & Whitney Canada and Lufthansa Group airlines.
GE Aerospace: Guidance raised again as jet engine demand soars
GE Aerospace (NYSE:GE) lifted its annual outlook again, citing continued strength in global air travel and rising engine demand. The jet-engine maker now expects earnings of $6.00 to $6.20 a share, revenue growth in the high teens and free cash flow up to $7.3 billion.
Quarterly adjusted earnings of $1.66 a share and revenue of $11.3 billion both surpassed estimates, driven by a 26% jump in sales and robust aftermarket performance. Chief Executive Larry Culp credited improvements in the supply chain for helping the company catch up on delayed engine deliveries to Airbus and Boeing.
GE’s (NYSE:GE) shares have surged more than 80% this year, outpacing peers as it cements its transformation into a pure-play aerospace leader.
Industry outlook: Strong demand, diverging strategies
Together, the results from the four defense and aerospace powerhouses point to a sector firing on all cylinders.
Defense spending in the U.S. and among NATO allies continues to climb, while commercial aviation is rebounding faster than expected, fueling demand for jet engines and maintenance services. Yet, companies face diverging pressures: Lockheed and Northrop are navigating program timing and cash flow challenges, while GE and RTX are capitalizing on civilian aviation’s resurgence.
“The global aerospace-and-defense market is entering a structural super-cycle, driven by rising government budgets and a rebound in commercial aviation,” Tony Bancroft, an aerospace and defense analyst at Gabelli Funds, said to Quartz in September. “The real edge now lies in execution and operational strength, not just demand.”