Key facts
- Lockheed Martin and RTX raised their 2026 financial forecasts.
- Increased Pentagon demand for weapons restocking due to global conflicts is driving the forecast increases.
- Lockheed Martin's total backlog grew to $230.4 billion, up 38.3% year-over-year.
- RTX's backlog increased 22% to $289 billion.
- Lockheed Martin's missiles and fire control revenue rose nearly 20% to $4.1 billion.
- Both companies exceeded their second-quarter earnings estimates.
Defense contractors Lockheed Martin and RTX have both raised their 2026 financial forecasts, citing strong demand driven by global conflicts and the Pentagon's need to replenish depleted weapons stockpiles. Investors responded positively, with Lockheed Martin shares climbing 10.6% and RTX shares rising 7.7% following the announcements.
President Donald Trump has been advocating for increased production from defense companies due to the ongoing conflicts in Iran and Ukraine, which have significantly drawn down U.S. inventory. The U.S. House of Representatives recently passed a defense policy bill authorizing $1.15 trillion in military spending.
Lockheed Martin reported a nearly 20% increase in revenue for its missiles and fire control segment, reaching $4.1 billion, bolstered by higher production of PAC-3 and Precision Strike missiles. The company's total backlog expanded by 38.3% year-over-year to $230.4 billion. Lockheed Martin now projects 2026 revenue between $79.75 billion and $81.75 billion, surpassing previous estimates and analyst expectations.
RTX also saw its backlog grow by 22% to $289 billion. The company anticipates 2026 adjusted sales to be between $95 billion and $96 billion and has raised its adjusted profit forecast to $7.10-$7.25 per share. Both companies surpassed their second-quarter earnings estimates.