Northrop Grumman and RTX raised their annual profit forecasts on Tuesday, helped by robust demand from military programs that pushed their backlogs to record levels.
Sustained demand for commercial aerospace services also fueled growth, both at RTX and rival engine maker GE Aerospace, which lifted its full-year forecast for a second time this year.
Northrop shares jumped by 7.2 per cent in early trading and RTX gained 2.4 per cent while GE Aerospace lost 4.9 per cent on lower than expected implied fourth-quarter earnings.
Geopolitical backdrop brings sustained military spending
The results add to strong performances among U.S. aerospace and defence contractors, supported by airline maintenance spending, growing demand for aircraft engines and parts and sustained military spending at a time of heightened geopolitical tensions around the globe.
Sales at RTX’s Raytheon climbed 14 per cent, driven by higher volume in naval programs and land and air defence systems, including Patriot, Standard Missile and Tomahawk.
“We continue to see robust global demand for all of our products and services,” RTX finance chief Neil Mitchill told Reuters on Tuesday, adding that the company had “another record backlog” of US$340 billion, up 36 per cent from a year ago.
Northrop, which makes the B-21 Raider bomber and parts for F-35 fighter jets, registered a similar 14 per cent sales increase at its Aeronautics Systems unit, which benefited from increased B-21 sales and higher F-35 production.
The company secured US$16.4 billion in new contracts during the quarter, with its orders growing at 1.5 times its billings, driven by strong demand across programs including Sentinel, the F-35, Virginia-class submarines and certain classified programs.
Northrop’s backlog rose to a record US$109.6 billion by September 30. Similarly, RTX chalked up US$81 billion in new commercial and defence awards, pushing its backlog to a record US$340 billion.
Beyond the military sphere, RTX was helped by airline maintenance spending and growing demand for its Pratt & Whitney aircraft engines and parts even as surging fuel costs squeeze airline profits.
GE Aerospace registered similarly firm demand, with revenue at its commercial engines and services business rising more than a fifth to US$10.34 billion.
It acknowledged, however, that prolonged high fuel prices could lead airlines to reduce flying, weakening demand for engine repairs, spare parts and spare engines.
Northrop now expects full-year 2026 adjusted profit per share in the range of US$29.35 to US$29.75, up from a previous forecast of between US$28.60 and US$29.10.
RTX now forecasts 2026 adjusted earnings per share of US$7.65 to US$7.75, up from its previous projection of US$7.10 to US$7.25. It also raised its sales forecast range to between US$97 billion and US$97.5 billion, from US$95 billion to US$96 billion.
GE Aerospace now expects adjusted earnings of US$8.00 to US$8.10 per share in 2026, up from its previous forecast of US$7.65 to US$7.85 and above analyst expectations of US$7.92, according to data compiled by LSEG.
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Reporting by Aatreyee Dasgupta, Shivansh Tiwary, Rajesh Kumar Sing and Mike StoneWriting by Christian PlumbEditing by Leroy Leo and David Goodman
