Defense Giants Boost 2025 Projections Amid Surging Global Demand

Industry-Wide Outlook Improvements

Major defense and aerospace corporations have raised their financial projections for 2025, citing robust demand despite economic headwinds and tariff impacts, according to recent earnings reports. GE Aerospace, Northrop Grumman, RTX, and Lockheed Martin all exceeded third-quarter profit expectations, with only Northrop missing revenue estimates based on LSEG analyst surveys.

Industry-Wide Outlook Improvements
GE Aerospace Delivers Record Performance
RTX Exceeds Expectations
Northrop Grumman’s Strong Earnings Beat
Lockheed Martin Sees Unprecedented Demand
Industry Resilience Amid Challenges

GE Aerospace Delivers Record Performance

GE Aerospace, which serves both defense markets and commercial aviation through engine supplies for Boeing and Airbus, reportedly increased its full-year adjusted revenue growth outlook from “mid-teens” to “high-teens” percentage growth. Sources indicate the company also raised its free cash flow forecast from $6.5-$6.9 billion to $7.1-$7.3 billion.

The company’s quarterly defense deliveries surged 83% compared to last year, while deliveries of its LEAP engines, used in Boeing 737 Max and Airbus A321neo aircraft, reached record levels with a 40% year-over-year increase. According to the analysis, GE’s $11.31 billion in adjusted revenue for the third quarter significantly exceeded Wall Street’s $10.41 billion estimate.

RTX Exceeds Expectations

RTX shares reportedly climbed approximately 9% in morning trading after the defense contractor raised its full-year adjusted earnings outlook from $5.80-$5.95 to $6.10-$6.20 per share. The company also increased its adjusted sales guidance from $84.75-$85.5 billion to $86.5-$87 billion.

Analysts suggest the company‘s ability to weather tariff impacts and macroeconomic uncertainty signals strong operational resilience. This represents a notable recovery from July, when the company estimated a $500 million hit from tariff costs and reduced its guidance. RTX posted a 12% increase in total revenue to $22.48 billion for the third quarter.

CEO Chris Calio stated in the earnings release that the company “remains focused on executing on our $251 billion backlog and increasing our output to support the ramp across critical programs, while investing in next-generation products and services.”

Northrop Grumman’s Strong Earnings Beat

Northrop Grumman reported earnings of $7.67 per share, significantly above Wall Street’s $6.46 per share estimate, according to LSEG data. Although the company reportedly missed revenue expectations, its sales increased 4% year-over-year, with defense systems division sales surging 14%.

The company raised its full-year adjusted earnings per share guidance by 65 cents to $25.65-$26.05. CEO Kathy Warden stated in the earnings release, “As a result of this performance and our positive outlook for the remainder of the year, we are once again increasing our 2025 EPS guidance. I am excited about our continued progress in responding with urgency to our customers’ needs.”

Lockheed Martin Sees Unprecedented Demand

Lockheed Martin, the final major defense contractor reporting Tuesday morning, also exceeded analyst expectations for the quarter ended September 30. The company reportedly earned $6.95 per share on revenues of $18.61 billion, beating Wall Street estimates of $6.36 per share and $18.56 billion respectively.

CEO Jim Taiclet indicated the company is experiencing “unprecedented demand” among domestic and international customers, leading to “significant” production capacity increases across multiple divisions. Lockheed boosted the low end of its full-year sales outlook and now expects revenue between $74.25 billion and $74.75 billion, while raising its earnings forecast from $21.70-$22 to $22.15-$22.35 per share.

Taiclet further noted in a statement that the company is “investing aggressively in both new digital technologies and physical production capacity needed to meet the top defense priorities of the United States and its allies,” working in partnership with various technology companies.

Industry Resilience Amid Challenges

The collective performance of these defense giants suggests strong sector resilience despite ongoing economic uncertainties. The upgraded forecasts across multiple companies indicate confidence in sustained demand through 2025, driven by both commercial aerospace recovery and heightened defense spending globally. Industry executives reportedly attribute their optimism to substantial backlogs and strategic investments in next-generation technologies.