Geopolitical conflicts, such as the U.S.-Israel war on Iran and the conflict between Russia and Ukraine, have put demand on U.S. defense companies soaring as the Pentagon scrambles to replenish its stockpile of weapons and aircraft.
Lockheed Martin, Northrop Grumman, RTX Corp. and Boeing reported first-quarter results this week that showed limited growth as supply chain and production delays weighed on the industry.
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Lockheed Martin reported first-quarter results on Thursday, falling short of analysts’ expectations. Net income for the first quarter of 2026 was $1.5 billion, down from $1.7 billion in the first quarter of 2025.
The Bethesda, Maryland-based defense giant said its aviation sector has been hit by delays in the development of its F-16 fighter jet, leading to flight-testing problems as supply chain strains weigh heavily on its C-130 transport aircraft.
“The total cost of rework and schedule extensions exceeded our plan estimates,” one executive said at Lockheed’s earnings conference.
Revenue decreased as sales of Confidential programming decreased by $325 million from the previous quarter. However, the losses were offset by increased sales of the F-35 fighter jet.
President Donald Trump’s administration has proposed purchasing 85 new F-35 fighter jets in 2027.
“We’re not surprised given management’s desire to align with customer policy,” said JPMorgan analyst Seth Seifman.
Lockheed stock fell sharply in intraday trading, down 5.1% since the market opened on Thursday and more than 12% over the past five days.
Boeing losses slowing
Meanwhile, Boeing on Wednesday reported a first-quarter loss of $7 million, narrowing from a loss of $31 million a year earlier. The Arlington, Virginia-based airline giant is trying to recover from several years of turmoil.
Defense and space revenue increased 50% to $233 million in the first quarter. In late March, Boeing won a $2.3 billion award from the U.S. Department of Defense, adding to an existing $4.9 billion contract from December.
Part of Boeing’s success in the first quarter came from space travel, as NASA’s Artemis II mission around the moon was a success. The effort was part of a joint venture with Northrop Grumman.
The company’s commercial aircraft division also had its best first-quarter deliveries since 2019. The segment’s sales for the quarter rose 13% to $9.2 billion.
However, these gains were offset by a $1.5 billion cash burn as the company increased production capacity and enhanced certification programmed for its 737 MAX and 777X aircraft.
Boeing stock rose 0.4% in midday trading, continuing a 4.1% rise over the past five days.
Demand for Northrop Grumman grows
Northrop Grumman, which released its financial results on Tuesday, showed first-quarter sales rose 4.4% year-over-year to $9.88 billion. The Falls Church, Virginia-based defense contractor blamed the surge on demand for its B-21 aircraft, a long-range stealth bomber.
January’s U.S. spending bill included $1.9 billion in funding for the B-21 assault jet, and in February the company secured an agreement with the U.S. Air Force to expand production capacity for the aircraft by 25%.
Northrop’s defense systems division saw organic sales rise 10% to $1.9 billion as the company ramped up its Sentinel intercontinental ballistic missile (ICBM) program.
Northrop shares were relatively flat, up 0.1% in midday trading Thursday, after falling nearly 12% over the past five days.
Meanwhile, Raytheon’s parent company, RTX Corp., raised both its full-year profit and revenue expectations in its first-quarter earnings report released Tuesday, after the Arlington, Virginia-based defense giant’s results were boosted by demand for missile systems.
First quarter sales were $22.08 billion, an increase of 9% compared to the same period last year. RTX’s Raytheon division reported sales increased 10% due to increased demand for both air and missile defense systems.
In April, RTX won a contract to supply Ukraine with Patriot GEM-T interceptors worth $3.7 billion.
RTX stock was down 0.7% in midday trading and has fallen 8.1% over the past five days.
