GE, Lockheed earnings: 2 key themes from aerospace & defense

GE Aerospace (GE), RTX (RTX), Lockheed Martin (LMT), and Northrop Grumman (NOC) all reported earnings Tuesday morning. Morning Brief host Julie Hyman breaks down the details from the aerospace and defense earnings.

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Video Transcript

00:00 Speaker A

we got General Electric GE Aerospace. That's the aerospace part of the businesses that uh split up. raising its full year outlook for the second quarter in a row. And the themes that we're seeing within Aerospace are actually some of the same themes that we're seeing in um some of the other companies that we're talking about, namely that these aerospace companies are seeing demand in commercial and in defense. um and secondly, that um we're seeing sort of a mitigated tariff impact that's being expressed by these companies that as the year has gone on, the largest companies have sort of figured it out. And in the case of a company like GE has actually reduced its estimates for tariff impact over time. So GE raising its forecast as I mentioned for the second time this year, third quarter revenue up 26% and it really saw demand on both sides of its business, on the commercial side of the business and on uh the uh aerospace and defense side of the business, the more government side of the business. RTX also raising its forecast for the second time in this year. Um, um and so that also benefiting those shares as well. And um if you look at the the four aerospace and defense contractors that reported this morning, you have GE, RTX, uh Lockheed, Martin and Northrop Grumman. GE and RTX are higher, Lockheed and Northrop were lower at the last uh check of those shares, but all of these stocks with the exception of Lockheed have done pretty well this year. GE is up more than 80% year to date. RTX is up 39% and is trading near a record high. So it has been a strong environment for these. So guys, it's just sort of the theme here that we continue to see many of these companies beat estimates because of a strong uh, you know, the strong backdrop that we're seeing here.

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