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Lockheed and RTX forecast strong profits as Pentagon stocks run low
Reuters reports Lockheed projects a near 20% rise in missiles and fire control revenue to $4.1 billion, supported by PAC-3 and THAAD output ramp-ups.
Lockheed Martin and RTX said they expect strong profits going forward, pointing to a replenishment cycle as global conflicts from Iran to Ukraine have depleted Pentagon stockpiles. According to Reuters, investors responded by pushing Lockheed shares up 10.6% and RTX shares up 7.7% after the forecasts.
President Donald Trump has urged defense contractors to increase production, and he proposed a record $1.5 trillion military budget for fiscal 2027. Reuters also notes the U.S. House passed a major defense policy bill this week that would authorize $1.15 trillion in spending for the military.
Pentagon data cited by Reuters says the U.S. has used more than 50,000 rockets, missiles, and rocket-propelled munitions since the start of the Russia-Ukraine conflict in 2022 and during the U.S. attack on Iran that began February 28.
Reuters reports Lockheed said its missiles and fire control revenue rose nearly 20% to $4.1 billion, helped by a production ramp-up for PAC-3 and precision strike missiles used in the war on Iran in recent months. The company also cited higher THAAD missile interceptor production, after signing a $35 billion contract with the U.S. government in June to quadruple output.