RTX and Lockheed Martin Earnings Beat Estimates Amid Resumed Iran Conflict
RTX Corporation (NYSE: RTX) and Lockheed Martin (NYSE: LMT) both exceeded Q2 earnings and revenue expectations, leading to a rise in their stock prices by 7% and 10%, respectively. Their strong performance was supported by expanding record contract backlogs, although these figures have not yet accounted for the recent resumption of hostilities with Iran. The companies' results contrasted sharply with weak Q1 reports that followed an initial Iran ceasefire and a broader sell-off in defense stocks due to institutional selling. However, renewed conflict has sparked interest in the war trade, particularly among major U.S. defense contractors like RTX and Lockheed Martin. A key concern remains whether the stalled 2027 National Defense Authorization Act (NDAA) will be signed by October 1; failure could disrupt multiyear procurement contracts critical to their backlogs. RTX reported a notable earnings beat with year-over-year revenue growth of 14.5%, surpassing estimates, and raised its full-year guidance for sales, EPS, and free cash flow. However, the company's backlog is partially exposed to commercial aerospace risks such as fuel prices and airline capacity.
Topics: Defense Earnings Lockheed Martin NDAA RTX War Trade