Defense stocks Lockheed Martin (LMT), RTX (RTX) and GE Aerospace (GE) are starting to rise in pre-market trading, after having reported strong earnings.
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Lockheed Martin reported Q3 EPS of $6.95, versus the analyst consensus estimate of $6.35. The company showed a revenue beat as well, reporting Q3 revenue of $18.6B versus the analyst consensus estimate of $18.52B. CEO Jim Taiclet cited record demand as the source of the growth, saying the company has an unprecedented $179 billion backlog.
RTX, too, beat earnings, reporting Q3 adjusted EPS of $1.70, versus the analyst consensus estimate of $1.41. Q3 revenue was strong as well, with RTX reporting revenue of $22.48B, while the consensus estimate was $21.32B. CEO Chris Calio attributed the upswing to global demand, saying that RTX had received $37B of new awards in Q3.
GE Aerospace, an aircraft company that also sells to the military, reported Q3 adjusted EPS $1.66, against the consensus estimate of $1.47. GE’s revenue rose 26% in the quarter to $12.2B, above the consensus of $10.41B. CEO H. Lawrence Culp, Jr. announced a full-year guidance raise across the board, given the company’s exceptional quarter.
Substantial Military Purchases
The U.S. military has made extensive defense purchases in recent months, no doubt backing the powerful growth of LMT, RTX and GE. In September, ahead of Defense Secretary Pete Hegseth’s meeting with U.S. generals and President Trump, the military cut a series of massive deals with defense companies.
As the Trump administration continues to fight narcotics crime in Central America, and shows a willingness to send in the National Guard to U.S. states, further investments into the military seem likely. President Trump’s dedication to military strength could continue to boost defense stocks’ bottom lines.