Defense Giants Show Divergent Paths as Tariffs Claim Casualties

While geopolitical tensions fuel big defense’s combat engine, no contractor is safe from Trump’s tariff crossfire. Lockheed MartinLMT

and RTXRTX

posted better-than-expected quarters, but face dramatically different outlooks — sending the latter down 9.8% yesterday as the unfolding trade war marks new casualties.

• LMT
  surged 3% in premarket trading yesterday after revealing a $7.28 Q1 EPS (vs. $6.34 expected) — reaffirming forecasts amid a 13% missile sales growth and a $180M F-35 deal.
• Despite resilient demand, a 7.52% earnings beat, and a maintained forecast, investors question RTX’s H2 performance — following its $850M tariff bombshell announcement.

Trading defense for defense: Previously known as Raytheon, RTX’s tariff loss includes a $500M hit across Canada, Mexico, and China. The company’s globe-spanning supply chain also sells jet engines and aircraft components to BoeingBA

and AirbusEADSF

— standing exposed should trade tensions impact jetliner sales. Despite a trading “fog of war,” experts find clarity in Trump’s record $1T annual defense budget, plus Europe’s 2x+ increase to $720B, which is a “clear opportunity,” as noted by RTX’s CEO. While the White House eyes an Iron Dome, Wall Street already discovered that not all shields are tariff-proof.