The uptrend in the Aerospace & Defense industry is mapped by the performance of the S&P Aerospace & Defense Select Industry Index, which has added 33% year to date, surpassing the S&P 500's 8.9% gain in the same period.
The increase in military spending by global economies gives a significant boost to the U.S. Aerospace – Defense Industry. According to Statista, between 2020 and 2024, the United States commanded about 43% of theglobal marketshare, maintaining its position as the world's largest exporter of major weapons.
Below, we highlight Q2 earnings results of a few renowned U.S. Aerospace – Defense Industry players.
Earnings in Focus
Northrop Grumman
Northrop Grumman Corporation NOC reported second-quarter 2025 adjusted earnings of $7.11 per share, which beat the Zacks Consensus Estimate of $6.71 by 6%.
Including one-time items, the company reported GAAP earnings of $8.15 per share, which improved 28% from the year-ago quarter’s reported number of $6.36.
The year-over-year improvement can be attributed to strong segment operating performance and a net after-tax benefit related to the divestiture of the company’s training services business.
The company’s total sales of $10.35 billion in the second quarter beat the Zacks Consensus Estimate of $10.06 billion by 2.9%. The top line also rose 1.3% year over year.The company updated its 2025 guidance.
NOC now expects its revenues in the range of $42.05-$42.25 billion, narrower than the previous guidance in the band of $42.00-$42.50 billion. NOC now expects adjusted earnings in the band of $25.00-$25.40 per share, higher than its earlier guided band of $24.95-$25.35.
RTX Corporation
RTX Corporation’s RTX second-quarter 2025 adjusted earnings per share of $1.56 beat the Zacks Consensus Estimate of $1.45 by 7.6%. The bottom line also improved 10.6% from the year-ago quarter’s level of $1.41, driven by growth in adjusted operating profit.
RTX’s second-quarter sales totaled $21.58 billion, which surpassed the Zacks Consensus Estimate of $20.53 billion by 5.1%. The top line also surged a solid 9.4% from $19.72 billion recorded for the second quarter of 2024.
Lockheed Martin
Lockheed Martin Corporation LMT reported second-quarter 2025 adjusted earnings of $7.29 per share, which beat the Zacks Consensus Estimate of $6.49 by 12.3%. The bottom line increased 2.5% from the year-ago quarter's reported figure of $7.11.
Including one-time items, the company reported GAAP earnings of $1.46 per share, lower than the prior-year quarter’s recorded earnings of $6.85.
The year-over-year deterioration in earnings was mainly due to lower consolidated operating profit generated in the second quarter of 2025 compared to the prior-year quarter.
Net sales were $18.16 billion, which missed the Zacks Consensus Estimate of $18.56 billion by 2.2%. The top line, however, inched up 0.2% from $18.12 billion reported in the year-ago quarter.
The company partially updated its 2025 guidance. Lockheed still expects to generate sales in the range of $73.75-$74.75 billion in 2025.
ETFs to Consider
The aerospace and defense industry maintains a moderately optimistic outlook. Given the current geopolitical climate, the trend of rising military spending is likely to persist.
For investors looking to take a bet on Q2 results as well as a continued surge in military spending, the following Aerospace – Defense ETFs provide a great opportunity.
Investors can consider iShares U.S. Aerospace & Defense ETF ITA, Invesco Aerospace & Defense ETF PPA, SPDR S&P Aerospace & Defense ETF XAR, Global X Defense Tech ETF SHLD and U.S. Global Technology and Aerospace & Defense ETF WAR.
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Get it now >>Lockheed Martin Corporation (LMT) : Free Stock Analysis Report
Northrop Grumman Corporation (NOC) : Free Stock Analysis Report
Global X Defense Tech ETF (SHLD): ETF Research Reports
iShares U.S. Aerospace & Defense ETF (ITA): ETF Research Reports
Invesco Aerospace & Defense ETF (PPA): ETF Research Reports
SPDR S&P Aerospace & Defense ETF (XAR): ETF Research Reports
RTX Corporation (RTX) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
