From The Economic Times · Reuters · · 1m 50s
Aerospace Contractors Boost 2026 Profit Forecasts
Northrop Grumman and RTX raise 2026 profit forecasts amid military spending surge.
In brief
Northrop Grumman and RTX raise 2026 profit forecasts amid military spending surge. Northrop Grumman and RTX increased 2026 profit forecasts to $29.35-$29.75 per share and $7.65-$7.75 per share respectively, driven by record military contracts and sustained demand. Originally reported by The Economic Times.
Profit Forecasts Raised
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.
Military Spending Surge
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.
Record Backlog Growth
RTX reported a record backlog of $340 billion, up 36% from a year ago, with sales at its Raytheon unit climbing 14%.
Northrop's Military Contracts
Northrop secured $16.4 billion in new contracts during the quarter, with orders growing at 1.5 times its billings, driven by strong demand across programs including Sentinel, F-35, Virginia-class submarines, and classified programs.
GE Aerospace Performance
GE Aerospace registered revenue at its commercial engines and services business rising more than a fifth to $10.34 billion, though high fuel prices could weaken demand for engine repairs.
2026 Profit Updates
Northrop now expects full-year 2026 adjusted profit per share in the range of $29.35 to $29.75, up from a previous forecast of between $28.60 and $29.10.
RTX Earnings Forecast
RTX now forecasts 2026 adjusted earnings per share of $7.65 to $7.75, up from its previous projection of $7.10 to $7.25 and raised its sales forecast to $97 billion to $97.5 billion.
GE Aerospace Earnings
GE Aerospace now expects adjusted earnings of $8.00 to $8.10 per share in 2026, up from its previous forecast of $7.65 to $7.85 and above analyst expectations of $7.92.
The one thing
Northrop Grumman and RTX increased 2026 profit forecasts to $29.35-$29.75 per share and $7.65-$7.75 per share respectively, driven by record military contracts and sustained demand.
