ETFs in Focus in Light of Aerospace & Defense Q2 Earnings Boost
The increase in military spending by global economies gives a significant boost to the U.S. Aerospace – Defense Industry. According to Statista, between 2020 and 2024, the United States commanded about 43% of the global market share, maintaining its position as the world's largest exporter of major weapons.
Below, we highlight Q2 earnings results of a few renowned U.S. Aerospace – Defense Industry players.
Earnings in Focus
Northrop Grumman
Northrop Grumman Corporation NOC reported second-quarter 2025 adjusted earnings of $7.11 per share, which beat the Zacks Consensus Estimate of $6.71 by 6%.
Including one-time items, the company reported GAAP earnings of $8.15 per share, which improved 28% from the year-ago quarter's reported number of $6.36.
The year-over-year improvement can be attributed to strong segment operating performance and a net after-tax benefit related to the divestiture of the company's training services business.
The company's total sales of $10.35 billion in the second quarter beat the Zacks Consensus Estimate of $10.06 billion by 2.9%. The top line also rose 1.3% year over year.The company updated its 2025 guidance.
NOC now expects its revenues in the range of $42.05-$42.25 billion, narrower than the previous guidance in the band of $42.00-$42.50 billion. NOC now expects adjusted earnings in the band of $25.00-$25.40 per share, higher than its earlier guided band of $24.95-$25.35.
RTX Corporation
RTX Corporation 's RTX second-quarter 2025 adjusted earnings per share of $1.56 beat the Zacks Consensus Estimate of $1.45 by 7.6%. The bottom line also improved 10.6% from the year-ago quarter's level of $1.41, driven by growth in adjusted operating profit.
RTX's second-quarter sales totaled $21.58 billion, which surpassed the Zacks Consensus Estimate of $20.53 billion by 5.1%. The top line also surged a solid 9.4% from $19.72 billion recorded for the second quarter of 2024.
Lockheed Martin
Lockheed Martin Corporation LMT reported second-quarter 2025 adjusted earnings of $7.29 per share, which beat the Zacks Consensus Estimate of $6.49 by 12.3%. The bottom line increased 2.5% from the year-ago quarter's reported figure of $7.11.
Including one-time items, the company reported GAAP earnings of $1.46 per share, lower than the prior-year quarter's recorded earnings of $6.85.
The year-over-year deterioration in earnings was mainly due to lower consolidated operating profit generated in the second quarter of 2025 compared to the prior-year quarter.
Net sales were $18.16 billion, which missed the Zacks Consensus Estimate of $18.56 billion by 2.2%. The top line, however, inched up 0.2% from $18.12 billion reported in the year-ago quarter.
The company partially updated its 2025 guidance. Lockheed still expects to generate sales in the range of $73.75-$74.75 billion in 2025.
ETFs to Consider
The aerospace and defense industry maintains a moderately optimistic outlook. Given the current geopolitical climate, the trend of rising military spending is likely to persist.
For investors looking to take a bet on Q2 results as well as a continued surge in military spending, the following Aerospace – Defense ETFs provide a great opportunity.
Investors can consider iShares U.S. Aerospace & Defense ETF ITA, Invesco Aerospace & Defense ETF PPA, SPDR S&P Aerospace & Defense ETF XAR, Global X Defense Tech ETF SHLD and U.S. Global Technology and Aerospace & Defense ETF WAR.
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Lockheed Martin Corporation (LMT): Free Stock Analysis Report
Northrop Grumman Corporation (NOC): Free Stock Analysis Report
Global X Defense Tech ETF (SHLD): ETF Research Reports
iShares U.S. Aerospace & Defense ETF (ITA): ETF Research Reports
Invesco Aerospace & Defense ETF (PPA): ETF Research Reports
SPDR S&P Aerospace & Defense ETF (XAR): ETF Research Reports
RTX Corporation (RTX): Free Stock Analysis Report
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