US defense contractors, including Lockheed Martin and Northrop Grumman, are maintaining their financial forecasts for 2025 due to the uncertainty surrounding US President Donald Trump’s tariffs. While RTX Corp expressed concern about potential losses from new levies on metals and China, the majority of major US defense firms reaffirmed their predictions.
Lockheed Martin reported a higher first-quarter profit, beating analyst expectations, while Northrop Grumman posted a 49% drop in profit due to manufacturing costs on its B-21 stealth bomber program. The European Union’s plans to increase its own defense capabilities by 2030 could reduce demand for US-made equipment and impact companies like RTX Corp.
Despite trade tensions and uncertainty, the global defense industry is benefiting from increased demand for weaponry, driven by conflicts in Ukraine and the Middle East. A potential increase in the US defense budget could boost revenues for contractors, but also highlights the complex interplay between defense spending, international relations, and economic policies.
Source: https://finance.yahoo.com/news/us-defense-contractors-mostly-maintain-165551130.html