Lockheed Martin (NYSE:LM) reported a higher first-quarter profit on Tuesday and reaffirmed its forecasts for the year on the back of resilient demand for its missile systems and fighter jets.
Shares of Lockheed were up 3% in premarket trading on Tuesday as the company posted earnings per share of $7.28, beating Wall Street analyst expectations of $6.34. They began Tuesday trading down sharply, $14.61, or 3.2%, to $443.72.
U.S. President Donald Trump’s trade war has rattled markets and upset some allies. For example, Canada, which is hit by steep tariffs, has ordered a review of a C$19 billion contract for 88 of Lockheed Martin’s F-35 jets, with Prime Minister Mark Carney saying the country relies too much on the U.S. for security.
Still, defense contractors have benefited from a surge in demand for weapons against the backdrop of the war in Ukraine and conflicts in the Middle East.
Legacy companies in the sector are also expected to get a potential boost from U.S. President Donald Trump’s review of military equipment export rules that he is seeking to ease.
Lockheed’s aerospace business, which makes the F-35 fighter jet, posted a 3.1% rise in sales in the first quarter.
Lockheed reported total revenue of $17.96 billion in the first quarter, up 4.5% from a year earlier. Sales during the quarter increased at all the company’s units, except its space division.