The Steady Drip: US Defense Contractors Maintain Forecasts (Connecting the Dots: Raytheon, The European Union, The U.S. Military, The Center for a New American Security & Soros Funding, All Networking)

US Defense Contractors Maintain Forecasts (Connecting the Dots: Raytheon, The European Union, The U.S. Military, The Center for a New American Security & Soros Funding, All Networking)

Newsmax.com

Tuesday, 22 April 2025 01:11 PM EDT

A BAE M88 Recovery vehicle amid recovery efforts for a missed U.S. Army soldier, as three other found dead on Monday, at a training range in Pabrade, north of Vilnius, Lithuania, April 1, 2025. (Mindaugas Kulbis/AP)

https://www.newsmax.com/finance/streettalk/defense-contractors-earnings/2025/04/22/id/1207889/

Major U.S. defense contractors are mostly maintaining their financial forecasts for 2025, saying it is too soon to understand the impact of U.S. President Donald Trump's tariffs.

Lockheed Martin, the largest defense firm, reaffirmed its forecasts for the year Tuesday, buoyed by resilient demand for its missile systems and fighter jets. Similarly, Northrop Grumman said its profit margins may narrow, but stuck with its sales prediction, indicating some confidence in the face of trade tensions.

"We do not see, at this point in time, significant risk to our company related to the trade policies as we understand them today," Northrop CEO Kathy Warden told analysts. "We're going to monitor that closely and we're already taking action to account for and mitigate the risks that we do see, particularly in availability of certain components that we need for delivering on our programs."

RTX Corp, formerly known as Raytheon Technologies, broke ranks by expressing concern about potentially $850 million in reduced profits from new levies on metals and China. This divergence highlights the varying impacts of trade policies across the defense and commercial aerospace sectors.

RTX has large commercial aerospace businesses that make jet interiors and engines.

The defense industry, like other sectors with complex manufacturing operations, is grappling with the potential effects of a global trade war. The situation has pressured an already strained supply chain, forcing companies to reassess their strategies and cost structures.

Despite these challenges, the sector continues to benefit from a surge in global weaponry demand, fueled by the Russian war in Ukraine and conflict in the Middle East. This increased demand has helped offset some of the uncertainties stemming from trade disputes.

However, RTX's concern signals the industry is not immune to trade pressures, highlighting the complex interplay between defense spending, international relations, and economic policies.

A higher U.S. defense budget, suggested by Defense Secretary Pete Hegseth in an April 7 social media post, would benefit contractors' revenues while providing some stability and growth, even amid an uncertain economic outlook.

Trump's review of military equipment export rules, aimed at easing restrictions, could potentially boost revenues for U.S. contractors. However, this comes as some allies, including Canada and the European Union, are reconsidering their reliance on U.S. defense equipment due to trade tensions and shifting geopolitical alliances.

The European Union has outlined plans to shore up its own defense capabilities to reduce reliance on the U.S. by 2030, meaning any role for companies outside the bloc could diminish.

Northrop Grumman posted a 49% drop in first-quarter profit and missed sales expectations, as the U.S. contractor booked losses on its B-21 stealth bomber program due to higher manufacturing costs, sending its shares down 12%.

Lockheed reported higher first-quarter profit, boosting shares more than 2%. Lockheed quarterly earnings per share of $7.28 beat Wall Street analyst expectations of $6.34.

Collins Aerospace, RTX's aerospace and avionics arm, posted an 8% rise in revenue that touched $7.22 billion in the quarter, while the Pratt and Whitney unit, which makes engines for Airbus', A320neo jets, saw sales rise 14%.

Raytheon, RTX's defense unit, reported a 5% fall in sales year-over-year, primarily driven by the divestiture of its cybersecurity, intelligence and services business completed last year.

Connecting the Dots:

Javier Solana was a high representative for common foreign & security policy for the European Union (EU), is a board member for the International Crisis Group, a director at the Human Rights Watch and a trustee at the Aspen Institute (think tank).

Open Society Foundations was a funder for the Human Rights Watch.

George Soros is the founder & chairman for the Open Society Foundations, a board member for the International Crisis Group, a member of the Breakthrough Energy Coalition, was the chairman for the Foundation to Promote Open Society and a benefactor at the Human Rights Watch.

Foundation to Promote Open Society was a funder for the Human Rights Watch and the Aspen Institute (think tank).

Reid Hoffman is a member of the Breakthrough Energy Coalition and was a fellow at the Aspen Institute (think tank).

Madeleine K. Albright was a trustee at the Aspen Institute (think tank) and a director at the Center for a New American Security.

Lester Crown was a lifetime trustee at the Aspen Institute (think tank) and a director at the General Dynamics Corporation.

James S. Crown is the vice chairman for the Aspen Institute (think tank) and a director at the General Dynamics Corporation.

General Dynamics Corporation was a contributor for the Center for a New American Security.

Jane Lakes Harman is a trustee at the Aspen Institute (think tank) and a stockholder in Harman International Industries, Inc.

Sidney Harman was a trustee at the Aspen Institute (think tank) and the chairman for Harman International Industries, Inc.

Dinesh C. Paliwal is the chairman & president & CEO for Harman International Industries, Inc. and a director at the Raytheon Company.

Raytheon Company AKA Raytheon Technologies or RTX Corp. was a contributor for the Center for a New American Security.

U.S. Army was a contributor for the Center for a New American Security.

U.S. Navy was a contributor for the Center for a New American Security.

U.S. Air Force was a contributor for the Center for a New American Security.

U.S. Coast Guard was a contributor for the Center for a New American Security.

U.S. Marine Corps was a contributor for the Center for a New American Security.
Daniel W. Christman was a lieutenant general in the U.S. Army and a director at the Atlantic Council of the United States (think tank).

Wesley K. Clark was a general in the U.S. Army and is a director at the Atlantic Council of the United States (think tank).

George A. Joulwan was a general in the U.S. Army and is a director at the Atlantic Council of the United States (think tank).

Barry R. McCaffrey was a general in the U.S. Army and a director at the Atlantic Council of the United States (think tank).

Robert W. RisCassi was a general in the U.S. Army and a director at the Atlantic Council of the United States (think tank).

Carl E. Vuono was a general in the U.S. Army and is a director at the Atlantic Council of the United States (think tank).

Eric K. Shinseki was a general in the U.S. Army, the secretary at the U.S. Department of Veterans Affairs for the Barack Obama administration and a director at the Atlantic Council of the United States (think tank).

Togo D. West Jr. is the secretary for the U.S. Army, the secretary at the U.S. Department of Veterans Affairs, the general counsel for the U.S. Department of Defense and a director at the Atlantic Council of the United States (think tank).
Herbert M. Allison Jr. was an officer in the U.S. Navy and a director at the Atlantic Council of the United States (think tank).

Edmund P. Giambastiani Jr. was an admiral in the U.S. Navy and is a director at the Atlantic Council of the United States (think tank).

Charles R. Larson was an admiral in the U.S. Navy and a director at the Atlantic Council of the United States (think tank).

Norman W. Ray was a vice admiral in the U.S. Navy and a director at the Atlantic Council of the United States (think tank).

James G. Stavridis was an admiral in the U.S. Navy and is a director at the Atlantic Council of the United States (think tank).

R. James Woolsey was the undersecretary for the U.S. Navy and is a director at the Atlantic Council of the United States (think tank).
Charles F. Wald was a general in the U.S. Air Force and is a director at the Atlantic Council of the United States (think tank).

Joseph W. Ralston was a general in the U.S. Air Force and is a director at the Atlantic Council of the United States (think tank).

Richard L. Lawson was a general in the U.S. Air Force and is a director at the Atlantic Council of the United States (think tank).

Michael V. Hayden was a general in the U.S. Air Force and is a director at the Atlantic Council of the United States (think tank).

John A. Gordon was a general in the U.S. Air Force and is a director at the Atlantic Council of the United States (think tank).

Michael P.C. Carns was a general in the U.S. Air Force and a director at the Atlantic Council of the United States (think tank).

James L. Jones Jr. is a director at the Atlantic Council of the United States (think tank), was the supreme allied commander – Europe for NATO, the commander, U.S. European Command for the U.S. Department of Defense, the national security adviser for the Barack Obama administration and a general in the U.S. Marine Corps.

Anthony C. Zinni is a director at the Atlantic Council of the United States (think tank) and was a general in the U.S. Marine Corps.

Carlton W. Fulford Jr. is a director at the Atlantic Council of the United States (think tank) and was a general in the U.S. Marine Corps.

Arnold L. Punaro is a director at the Atlantic Council of the United States (think tank) and was a major general in the U.S. Marine Corps.

James E. Cartwright was a U.S. Marine Corps general, the vice chairman for the Joint Chiefs of Staff and is a director at the Atlantic Council of the United States (think tank).

Open Society Foundations was a funder for the Atlantic Council of the United States (think tank).

George Soros is the founder & chairman for the Open Society Foundations.

Madeleine K. Albright was an honorary director for the Atlantic Council of the United States (think tank), a director at the Center for a New American Security and a trustee at the Aspen Institute (think tank).

Javier Solana was a high representative for common foreign & security policy for the European Union (EU), is a trustee at the Aspen Institute (think tank), a director at the Human Rights Watch and a board member for the International Crisis Group.

Foundation to Promote Open Society was a funder for the Aspen Institute (think tank) and the Human Rights Watch.

George Soros was the chairman for the Foundation to Promote Open Society, a benefactor at the Human Rights Watch, is a board member for the International Crisis Group and a member of the Breakthrough Energy Coalition.