From Yahoo Finance: 2025-04-22 12:55:00

Major U.S. defense contractors are maintaining their financial forecasts for 2025, citing uncertainty around Trump’s tariffs. Lockheed Martin and Northrop Grumman reaffirmed sales predictions, while RTX Corp expressed concern over potential profit reductions from new levies. The defense industry faces supply chain pressures amid global trade tensions but benefits from increased global weaponry demand.

Northrop Grumman saw a 49% drop in first-quarter profit due to losses on the B-21 stealth bomber program, while Lockheed reported higher profit with earnings per share beating expectations. Collins Aerospace, RTX’s arm, posted an 8% revenue rise, and Pratt and Whitney saw a 14% sales increase from Airbus’ A320neo jets. Raytheon, RTX’s defense unit, reported a 5% sales decline due to divestiture.

The European Union plans to bolster its defense capabilities to reduce reliance on the U.S. by 2030, potentially impacting companies outside the bloc. Despite challenges and uncertainties, a surge in global weaponry demand is supporting the defense sector amid trade disputes. Trump’s review of military equipment export rules could boost revenues, while allies like Canada and the EU reconsider their reliance on U.S. defense equipment.



Read more at Yahoo Finance: US defense contractors mostly maintain forecasts despite Trump tariffs