RTX and Northrop Grumman were first out of the gate on Tuesday among the quarterly reports due from major defense contractors. Lockheed Martin cleared earnings views. LMT stock ticked higher on results. RTX and NOC shares retreated.
Lockheed Martin reported earnings of $7.28 per share, beating expectations for a 1 cent increase to $6.34 per share. Sales rose 4% to $18 billion, outpacing views for $17.78 billion.
Aeronautics sales rose 3.1%, while missile and fire control revenue increased 12.7%. Sales for Lockheed Martin's space division eased almost 2%.
CEO Jim Taiclet in the release noted that Lockheed Martin's backlog has reached $173 billion, which represents more than two years of sales.
Lockheed Martin maintained its 2025 outlook. However, it doesn't include impacts from evolving tariffs, the recent Next Generation Air Dominance announcement, or executive orders from the Trump administration.
Lockheed Martin expects 2025 earnings to range from $27 to $27.30 per share, while FactSet expects $27.22 per share. The defense contractor sees sales ranging from $73.75 billion to $74.75 billion, compared to analyst estimates for $74.28 billion.
Lockheed ticked up 0.8% Tuesday. Shares eased 1.2% Monday.
LMT stock is trading above its 50-day moving average, but still has a good distance to recover to its 200-day line.
Shares are down 8% so far this year, having tumbled from their record high of 618.95 from Oct. 21.
RTX
RTX reported adjusted earnings of $1.47 per share, better than the 1 cent increase to $1.35 per share expected by analysts. FactSet forecast 2.6% revenue growth to $19.82 billion. RTX actual revenue came in at $20.31 billion.
RTX's Pratt & Whitney jet engine division saw a 14% increase in revenue, while Collins Aerospace Systems sales rose 8%. Raytheon sales fell 5% during the quarter, slightly worse than the 2% decline that FactSet expected.
A statement from Chief Executive Chris Calio said the company's "organic growth was broad based and led by strength in commercial aftermarket, which was up 21% year-over-year."
RTX expects 2025 earnings to range from $6 to $6.15 per share adjusted, while FactSet expects $6.10 per share. The company sees adjusted sales ranging from $83 billion to $84 billion, including 4% to 6% organic growth. The sales forecast was slightly below analyst views for $84.15 billion.
RTX anticipates $7 billion to $7.5 billion in free cash flow for the year.
However, the outlook does not include the impact of the recent tariffs from President Trump. During the earnings call, executives said they expect an $850 million hit for the year due to the tariffs.
RTX stock slid 2.2% Monday. Shares fell 9.8% in Tuesday action.
The stock tumbled below its 200-day line on the move.
RTX broke out from a cup base in late January and rallied to a record high of 136.17 on March 26. However, the stock sold off in early April and triggered the 10% sell rule.
Prior to earnings, shares had been working on a new consolidation next to that cup base.
RTX stock is down 1.7% so far this year.
Northrop Grumman
Northrop delivered earnings of $3.32 per share, vs expectations for a decline 1.3% to $6.24 per share. Revenue was forecast to drop 2% to $9.92 billion. Actual results were $9.47 billion.
Northrop received $10.8 billion in contract or project awards during the quarter, with its backlog climbing to a record $92.8 billion.
The company reaffirmed its prior cash flow and sales guidance for the year. However, management pared its full-year earnings guidance to between $24.95 and $25.35, down from $27.85 to $28.25. pre-earnings consensus views called for $28.05.
NOC stock eased 1.7% Monday. Shares tumbled almost 12.7% Tuesday.
Shares had been on a sharp uptrend since late February, with only one major sell-off day in early April ahead of results.
Prior to earnings, Northrop was working up the right side of a 28-week consolidation. The 555.57 buy point for the pattern matches Northrop Grumman's record high from Oct. 1.
NOC stock is now down 1.1% in 2025.
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