Defense reserves failed in 2025, when President Trump returned to the White House for a second term. Trump announced his intention to stop wars in Ukraine and Israel. Although this is good news for people and countries, this also means that potentially less money will be spent on weapons and defense budgets, which will ultimately lead to a slowdown in income for defense contractors.
Add to the consequences of the efforts of the Department of State Efficiency (DOGE) to reduce waste and fraud, having studied defense contracts and budgets in all departments of the government, which led to a rapid change in moods for the group.
Two protective actions in the aerospace sector immediately come to mind during geopolitical conflicts: Lockheed Martin Inc. NYSE: LMT And RTX CO. NYSE: RTXPreviously known as the Ratell. Both promotions come out during wars, providing the necessary protective and missile systems and military equipment. Investors can think about what shares can have more growth this year aminated by the movement to reduce budgets and resolve geopolitical tension. Let’s look at both.
Lockheed Martin: The world’s largest protective contractor has the largest exposure
Lockheed Martin stock forecast today
$ 553.67
Moderate purchase
Based on 15 analyst ratings
| High forecast | $ 704.00 |
|---|---|
| Average forecast | $ 553.67 |
| Low forecast | $ 377.00 |
Lockheed Martin shares forecast details
Lockheed Martin shares decreased by 26.9% compared to their maximum $ 618.95 October 22, 2024, and as of February 28, 2025, 7.32% (YTD). As the largest defense contractor in the world, its reserves is a bouqual barometer of geopolitical trend. The company published record incomes in 2024, since tension continued to grow. The shares almost doubled during the three-year war in Ukraine-Russian.
To be the largest defense company means the largest number of wars. Logically, this also means that Lockheed takes the worst post -war budget reduction.
Lockheed made notes in 2024, but the spelling was on the wall
The company saw its quarterly peak of income in the 4th quarter of 2023 at $ 18.87 billion. A year later, in the fourth quarter of 2024, Lockheed’s income fell 1.3% compared to last year (Youy) to $ 18.62 billion. The USA, which will not reach the expectations of Wall Street analysts in the amount of 18.87 billion dollars. USA that miss 250 million dollars. Nevertheless, the income remained strong, since the company published 4 quarters of income for the form (EPS) in the amount of $ 7.67, crushing consensus estimates amount to $ 6.62 by $ 1.05. Weakness came from slowing down in his business business.
Even Lokhid saw spelling on the wall in his direct guide. Throughout 2025, the company sees EPS from $ 27.00 to $ 27.30, which does not reach consensus ratings of $ 27.88. Revenue is expected from 73.75 to 74.75 billion dollars. USA, and the middle point is $ 74.25 billion. The USA, which is slightly higher than the assessments of consensus analysts in $ 74.11 billion. USA.
This caused an immediate 10% of shares sales the next day. Achilles heel of lokhid is the lack of diversification of income. Almost 75% of it 2024 Revenues came from service contracts with the US Department of Defense.Field
RTX: diversification – Best Protection for RayTheon
RTX shares forecast today
$ 163.40
Moderate purchase
Based on 16 ratings of analysts
| High forecast | $ 493,00 |
|---|---|
| Average forecast | $ 163.40 |
| Low forecast | $ 104.00 |
Forecast forecast RTX shares
Lockheed, RTX, recently reached new record maxima at the level of $ 133.09, bargaining at 14.92% YTD as of February 28, 2025. The cause of superiority compared to Lockheed Martin shares is revenue diversification. RTX has three segments: Collins Aerospace, Pratt & Whitney and Raytheon Technologies. From aerospace parts to aircraft engines to missile defense systems, such as global systems of missile defense of patriots, RTX revenues are almost evenly divided between the government and commercial ones.
The growth engine is still controlled by the commercial business
RTX said that the increase in revenue in the 4th quarter by 8.5% in annual terms is up to 21.62 billion dollars. USA, exceeding consensus estimates of $ 20.54 billion. USA. The company published a profit per share in the amount of $ 1.54, also exceeded the consensus estimates in the amount of $ 1.38 for 16 cents. It is important to note that the lag has grown to $ 218 billion, of which 125 billion dollars for commercial customers, and $ 93 billion is protectionField
RTX said that throughout the year in 2025 there was that the EPS amounted to $ 6.00 up to 6.15 US dollars against $ 6.09. Revenue is expected from 83 to 84 billion dollars, and the average point is $ 83.5 billion. This does not reach 84.43 billion dollars expected by analysts. Cash flow is expected from 7.5 billion dollars.
RTX is less subject to reducing defense costs, since income is almost evenly divided between commercial and protective, while The backing is tilted by 53.7% by 42.7% in favor of commercial contractsField
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