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.