Lockheed Martin stock tumbled on Tuesday after the defense contractor recorded major pretax losses in its quarterly results. RTX topped estimates and raised its sales outlook, but lowered its earnings guidance. Northrop Grumman rallied to clear a buy point after its report. General Dynamics reports earnings on Wednesday, followed by L3Harris and Textron on Thursday.
Lockheed Martin reported earnings of $1.46 per share, down from $6.85 per share last year. Revenue increased slightly to $18.2 billion.
FactSet analysts expected earnings of $6.57 per share on 2.5% revenue growth to $18.57 billion.
Lockheed said it recorded $1.6 billion in pretax losses on different programs, as well as $169 million in charges during the quarter, which impacted earnings by $5.83 per share.
The company's Aeronautics classified program has "experienced design, integration and test challenges, as well as other performance issues," Lockheed wrote. The trends continued this year, which had a greater impact on schedule and costs than previously expected. As a result, Lockheed is completing a review of its Aeronautics program execution and management. Lockheed said it has made significant changes to its process and testing approach, resulting in significant changes to its schedule and cost estimates. Lockheed Martin recorded $950 million in pretax forward losses on the program.
It also recognized $570 million in pretax losses on its Canadian Maritime Helicopter Program, and $95 million on its Turkish Utility Helicopter Program.
CEO Jim Taiclet noted there were still positive developments. "Several" allied nations recently announced additional F-35 purchases, the U.S. Army has awarded more than $1 billion in missile-related contracts, and the U.S. Space Force is ordering additional satellites, Taiclet said.
Lockheed slashed its earnings forecast to range from $21.70 per share to $22 per share, down from $27 to $27.30 per share. The company now sees its business operating profit ranging from $6.6 billion to $6.7 billion, compared to its previous forecast for $8.1 billion to $8.2 billion.
Lockheed Martin maintained its revenue and free cash flow outlooks.
LMT stock tumbled 10.8% Tuesday.
Lockheed Martin stock is down more than 15% in 2025 and struggling below resistance in an eight-month consolidation.
See The 5 Best Stocks To Buy And Watch Right Now
RTX Earnings
RTX reported an 11% increase in earnings to $1.56 per share adjusted. Revenue climbed 9% to $21.6 billion.
Analysts polled by FactSet expected earnings of $1.44 per share on 4.3% revenue growth to $20.63 billion.
Raytheon revenue rose 8% to $7 billion due to higher volumes on land and air defense systems. Pratt & Whitney sales jumped 12% to $7.63 billion, despite a four-week work stoppage during the quarter. Collins Aerospace revenue increased 9% to $7.62 billion, driven by 13% growth in commercial aftermarket sales and 11% growth in defense revenue.
RTX's backlog increased 15% to $236 billion.
The company lifted its revenue outlook for the year, but cut its earnings forecast. RTX now sees adjusted sales ranging from $84.75 billion to $85.5 billion, compared to its prior forecast for $83 billion to $84 billion. RTX also raised its organic sales growth forecast to range from 6% to 7%. Its prior outlook called for 4% to 6% organic sales growth. However, RTX cut its earnings estimates to range from $5.80 to $5.95 per share adjusted. RTX previously expected earnings between $6 per share and $6.15 per share.
RTX still maintained its free cash flow outlook for $7 billion to $7.5 billion.
The forecast reflects the expected impact of tariffs and recently-passed tax legislation.
Shares declined 1.6% Tuesday.
RTX stock is trading near record highs, with about a 29% gain so far this year including two breakouts.
Streamline Your Hunt For The Best Stocks
Northrop Grumman Earnings
Northrop Grumman reported earnings of $8.15 per share, up from $6.36 per share last year. Revenue rose 9% to $10.4 billion.
FactSet expected earnings of $6.84 per share. Analysts saw revenue sliding 1.5% to $10.06 billion.
CEO Kathy Warden said that Northrop continues to see demand grow globally, which resulted in an 18% jump in international sales during the quarter.
Aeronautics systems revenue rose 2%, while defense systems sales increased 7%. Mission systems revenue jumped 14%. However, revenue from space systems fell 12% due to the wind-down of the Next Generation Interceptor program and lower volume on Space Development Agency satellite programs.
Northrop Grumman raised its 2025 outlook on results. The company lifted its earnings guidance to range from $25 per share to $25.40 per share adjusted. Its previous outlook called for earnings between $24.95 per share to $25.35 per share.
Northrop increased its sales outlook to range from $42.05 billion to $42.25 billion, up from $42 billion to $42.5 billion. Free cash flow is expected to range from $3.05 billion to $3.35 billion. Northrop previously expected $2.85 billion to $3.25 billion in free cash flow.
NOC stock jumped 9.4% Tuesday to clear a 555.57 buy point for a consolidation.
Northrop Grumman's gain on Tuesday put shares up almost 15% for the year.
You can follow Harrison Miller for more stock news and updates on X/Twitter @IBD_Harrison
