Northrop Grumman Corp. and General Dynamics Corp., two of the Pentagon’s largest contractors, posted stronger-than-expected second-quarter results and lifted their 2025 forecasts, underscoring resilient demand for U.S. defense equipment and business jets despite supply-chain pressures. Northrop Grumman’s adjusted earnings rose to $8.15 a share on $10.4 billion of sales, beating Wall Street estimates as growth in aeronautics, defense and mission systems offset lower space revenue. International sales jumped 18%, and the company lifted its full-year outlook, projecting free cash flow of $3.05-$3.35 billion, adjusted earnings of $25.00-$25.40 a share and as much as $42.25 billion in sales. General Dynamics earned $3.74 a share on revenue of $13.04 billion, an 8.9% year-on-year increase driven by record orders in its marine and aerospace units. The Reston, Virginia-based company ended the quarter with a $103.7 billion backlog and a 2.2-times book-to-bill ratio. It now expects 2025 revenue of roughly $51.2 billion, operating margin of 10.3% and earnings of $15.05-$15.15 a share. The upbeat results come as global defense spending remains elevated amid geopolitical tensions, bolstering order books for U.S. contractors. Shares of both companies rose in pre-market trading following the announcements.
$RTX sentiment: positive RTX CORP (RTX) NAMED TOP DEFENSE PICK BY 17 ANALYSTS INCLUDING MORGAN STANLEY
General Dynamics CEO Reports Expected 2025 Earnings Per Share Between $15.05 and $15.15 💼📈
$GD TTN Summary of 09:00ET Earnings Call: Guides FY25 Rev ~51.2B v $50.5Be, opr margin 10.3% (General Dynamics Corporation) (More at https://t.co/RXLl9tAlgi)