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Lockheed Martin and RTX raised their full-year guidance on Tuesday after both companies saw a surge in orders from governments expanding their defense budgets. Their third-quarter numbers topped expectations, and both are now planning for even more growth going into 2025.
Lockheed said it’s increasing production across its divisions due to what CEO Jim Taiclet called “unprecedented demand” from both U.S. and foreign customers.
The company now expects revenue between $74.25 billion and $74.75 billion, with earnings per share between $22.15 and $22.35. Lockheed reported Q3 earnings of $6.95 per share on $18.61 billion in revenue, beating estimates of $6.36 and $18.56 billion.
Taiclet also confirmed investment in digital systems and physical production lines to support “top defense priorities”, including the $175 billion U.S. Golden Dome project, which begins construction in 2025 and already has $25 billion earmarked in next year’s defense budget.
RTX lifts revenue target after tariff impact fades
RTX followed with an upgrade of its own, pushing full-year adjusted earnings guidance from $5.80–$5.95 to a range of $6.10–$6.20, and revenue expectations from $84.75–$85.5 billion up to $86.5–$87 billion.
The firm’s stock jumped 9% after Tuesday’s update. CEO Chris Calio said they’re staying focused on delivering a $251 billion backlog and scaling output across critical programs. RTX’s total revenue climbed 12% to $22.48 billion in the third quarter.
In July, RTX had warned of a $500 million tariff hit and cut guidance. But now, those impacts seem to be absorbed.
The company also saw growth across both its aerospace and defense arms, with Calio pointing to new investments in next-gen tech and manufacturing as reasons for the upward revision.
GE, Northrop also beat earnings as defense spending climbs
GE Aerospace, which supplies both commercial and defense markets, said Q3 adjusted revenue hit $11.31 billion, far above the $10.41 billion estimate. The company raised full-year revenue growth from “mid-teens” to “high-teens” and pushed free cash flow guidance from $6.5–$6.9 billion to $7.1–$7.3 billion.
Deliveries of LEAP engines, used in Boeing 737 Max and Airbus A321neo jets, jumped 40% year over year. Meanwhile, defense deliveries alone surged 83%, showing just how fast military orders are ramping up.
Northrop Grumman also beat profit expectations, reporting $7.67 EPS for the quarter versus a $6.46 Wall Street target. Its revenue missed estimates slightly, but total sales still rose 4%, with a 14% increase in its defense systems division.
The company raised its 2025 EPS guidance by 65 cents, now forecasting $25.65 to $26.05. CEO Kathy Warden said, “We are once again increasing our 2025 EPS guidance,” and pointed to faster response efforts and better output across programs.
Across all four companies (Lockheed, RTX, Northrop, and GE), the same pattern held: higher orders, stronger production, and tighter guidance. The rise in U.S. defense spending plays a huge role in that.
The Trump administration is requesting $849.8 billion for the 2025 defense budget, up from $842 billion in 2024, and way above the $742 billion level from 2022. The White House cited threats from Russia, Iran, and North Korea as justification for the larger outlays.
Every one of these contractors is cashing in. All four beat Q3 earnings. All four raised their guidance. And all four are building to meet the demands of a world where defense orders just keep coming.
Defense spending has become one of the few consistent growth drivers this year, even with tariffs, inflation, and global instability. And right now, that growth is all over the numbers. With new missiles, aircraft, and war-tech rolling off the line, the defense sector has become the safest bet in a chaotic global market.
Defense now makes up a larger share of these companies’ revenue than at any point in the last five years. None of them is slowing down. GE is delivering more. RTX is expanding backlog output. Lockheed is scaling capacity. Northrop is hiking EPS targets. And behind it all, Washington is writing the checks.
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