
Defense stocks are pulling back following Q1 reports from Lockheed Martin (NYSE: LMT), Northrop Grumman (NYSE: NOC), and RTX (NYSE: RTX). The primary cause is uncertainty, followed by tepid guidance. Regarding uncertainty, companies face an unknown impact from tariffs that could affect their profitability. That is a risk that can’t be ignored.
Each company reaffirmed its 2025 outlook, calling for growth and enough cash flow to maintain financial strength, reinvest in operations, and return capital to shareholders.