What a time to be a prime. In the past few weeks, we’ve finally gotten a look at Q2 results from some of defense’s biggest players—Northrop Grumman, Raytheon (RTX), Lockheed Martin, and L3Harris, among them—and the results have been mixed, to say the least.
Amidst tariffs and record-high geopolitical tensions, and in the face of an administration that seems to want to change the way weapons are purchased, some of the industry’s biggest names floundered (looking at you, Lockheed). But then sleeper hits (hey, Northrop) far exceeded expectations.
With aerospace drama queen and Trump favorite Boeing releasing its results today, we thought we’d take a look at what we’ve seen so far. How has everyone performed—and why?
Boeing: According to results released this morning, the aerospace giant had a slightly less chaotic Q2 than usual.
- The company reported narrower-than-expected losses in Q2 2025: -$612M, compared to -$1.44B last year. Celebrate the small wins, we guess?
- Revenue rose 35% YoY to $22.75B, thanks mostly to commercial jet orders.
- Adjusted profit-per-share came in at -$1.24, better than expected.
- The company also reported a massive $619B backlog. That’s a lot of orders.
But Boeing is far from out of the woods. There is still a production cap on 737 MAX planes due to safety concerns—and the planes are still having problems. A 737 MAX literally caught fire, forcing passengers to evacuate, in Denver yesterday.
Lockheed Martin: But let’s move on to the quarter’s biggest loser. Last Tuesday, the F-35-building behemoth released some pretty shocking quarterly results: over $1.6 billion in losses, mainly due to a classified aeronautics program (mysterious) and its international helicopter program.
- Net income fell by 80% YoY—from $1.64B in Q2 2024 to $342M in Q2 2025.
- The company cut its operating profit estimate by $1.5B (about 18%) to $6.65B
- Lockheed lost $950M on the classified program, and an additional $570M on a Canadian maritime helicopter program.
- The company also lost $95M on a helicopter program with Turkey, largely due to sanctions.
Lockheed is also in a heated battle with tax authorities, who say the company owes $4.6B.
In a teeny-tiny bright spot (we guess?), the company confirmed upgrades to the F-35 had been rolled out, but also considering the DoD has soured on the jet in favor of Boeing’s planned F-47, we can’t imagine it’ll help all that much.
Raytheon (RTX): Okay, fine, we’ll use the trendy new name. RTX—the prime formerly known as Raytheon—reported cautiously optimistic results for the quarter. Revenue grew by 9%, beating expectations, but the company adjusted its profit guidance downwards due to the impact of tariffs. The company:
- Reported $21.6B in Q2 sales and adjusted its 2025 sales outlook up to $84.75–$85.5B.
- Estimates $500M in tariff costs in 2025, hence the downward shift in adjusted profit (from $6.00–$6.15 per share to $5.80–$5.95 per share).
- Said it had a backlog of $236 billion ($144 billion of commercial and $92 billion of defense).
- Highlighted orders for “geared turbofan engines and integrated air and missile defense capabilities” as driving profit.
RTX subsidiaries Pratt & Whitney and Collins Aerospace both reported pretty solid quarterly results, with sales up 12% and 9% respectively.
Northrop Grumman: Northrop really pulled it out in a quiet way this quarter. The B-21 and Sentinel producer beat expectations on profit, on revenue, and even raised adjusted profit guidance—from $24.95–$25.35 to $25.00–$25.40 per share.
So, what did they do right? Well, basically, their job. They delivered on all of their core businesses—aeronautics, mission systems, and defense systems—and demand was up for all three (especially mission systems). The company:
- Reported 10.35B in Q2 revenue, up slightly YoY and above analyst expectations of $10.06B.
- Scored $1.17B in profit, or $8.15 per share, up from $940M ($6.36/share) last year.
- Closed the quarter with a hefty $89.7B backlog and raised its free cash flow guidance to $3.05–$3.35B.
Shares in Northrop jumped 9% last week at the news.
L3Harris: Talk about sleeper hits. L3Harris—quickly becoming a DoD favorite for everything from cUAS to space systems—also reported a strong quarter.
- Q2 sales rose to $5.4B, up about 2.4% YoY.
- The company raised its FY25 revenue outlook to $21.75B, up from $21.4–21.7B.
- L3 booked $8.3B in orders, up from $5.2 B last year, and reported a $35B backlog
- Adjusted profit-per-share came in at $2.78, above expectations.
According to execs, demand for space systems and tactical comms (along with international interest) drove the boom.
General Dynamics: We’d be remiss if we didn’t include General Dynamics, which chugged along pretty nicely in Q2, despite everything. The maker of the Columbia-class sub saw a bump in its marine systems, and solid demand on the commercial side for its Gulfstream jets. Turns out, even in a rocky economy, everyone loves a PJ.
- The company’s Q2 revenue came in at $11.3B, up 7.6% YoY.
- Net earnings rose to $936M from $744M last year.
- Profit-per-share also rose to $3.50, above expectations.
- GD also reported a more than $103B backlog.
TL;DR: So, what does this all mean for defense? Well, aside from Lockheed (tough), the sector performed pretty well, despite tariffs and the like. Experts at Citi, Bernstein, and Morgan Stanley all remain bullish on defense, and demand remains high (just look at those backlogs).
However, we’re not out of the woods yet: as RTX’s profit tempering shows, tariffs could still have a massive impact. $500M in a year ain’t pocket change.