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ETFs in Focus in Light of Aerospace & Defense Q2 Earnings Boost

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The uptrend in the Aerospace & Defense industry is mapped by the performance of the S&P Aerospace & Defense Select Industry Index, which has added 33% year to date, surpassing the S&P 500's 8.9% gain in the same period.

The increase in military spending by global economies gives a significant boost to the U.S. Aerospace – Defense Industry. According to Statista, between 2020 and 2024, the United States commanded about 43% of the global market share, maintaining its position as the world's largest exporter of major weapons.

Below, we highlight Q2 earnings results of a few renowned U.S. Aerospace – Defense Industry players.

Earnings in Focus

Northrop Grumman

Northrop Grumman Corporation (NOC - Free Report) reported second-quarter 2025 adjusted earnings of $7.11 per share, which beat the Zacks Consensus Estimate of $6.71 by 6%.

Including one-time items, the company reported GAAP earnings of $8.15 per share, which improved 28% from the year-ago quarter’s reported number of $6.36.

The year-over-year improvement can be attributed to strong segment operating performance and a net after-tax benefit related to the divestiture of the company’s training services business.

The company’s total sales of $10.35 billion in the second quarter beat the Zacks Consensus Estimate of $10.06 billion by 2.9%. The top line also rose 1.3% year over year.The company updated its 2025 guidance.

NOC now expects its revenues in the range of $42.05-$42.25 billion, narrower than the previous guidance in the band of $42.00-$42.50 billion. NOC now expects adjusted earnings in the band of $25.00-$25.40 per share, higher than its earlier guided band of $24.95-$25.35. 

RTX Corporation

RTX Corporation’s (RTX - Free Report) second-quarter 2025 adjusted earnings per share of $1.56 beat the Zacks Consensus Estimate of $1.45 by 7.6%. The bottom line also improved 10.6% from the year-ago quarter’s level of $1.41, driven by growth in adjusted operating profit.

RTX’s second-quarter sales totaled $21.58 billion, which surpassed the Zacks Consensus Estimate of $20.53 billion by 5.1%. The top line also surged a solid 9.4% from $19.72 billion recorded for the second quarter of 2024. 

Lockheed Martin

Lockheed Martin Corporation (LMT - Free Report) reported second-quarter 2025 adjusted earnings of $7.29 per share, which beat the Zacks Consensus Estimate of $6.49 by 12.3%. The bottom line increased 2.5% from the year-ago quarter's reported figure of $7.11.  

Including one-time items, the company reported GAAP earnings of $1.46 per share, lower than the prior-year quarter’s recorded earnings of $6.85. 

The year-over-year deterioration in earnings was mainly due to lower consolidated operating profit generated in the second quarter of 2025 compared to the prior-year quarter.

Net sales were $18.16 billion, which missed the Zacks Consensus Estimate of $18.56 billion by 2.2%. The top line, however, inched up 0.2% from $18.12 billion reported in the year-ago quarter.

The company partially updated its 2025 guidance. Lockheed still expects to generate sales in the range of $73.75-$74.75 billion in 2025.

ETFs to Consider

The aerospace and defense industry maintains a moderately optimistic outlook. Given the current geopolitical climate, the trend of rising military spending is likely to persist.

For investors looking to take a bet on Q2 results as well as a continued surge in military spending, the following Aerospace – Defense ETFs provide a great opportunity.

Investors can consider iShares U.S. Aerospace & Defense ETF (ITA - Free Report) , Invesco Aerospace & Defense ETF (PPA - Free Report) , SPDR S&P Aerospace & Defense ETF (XAR - Free Report) , Global X Defense Tech ETF (SHLD - Free Report) and U.S. Global Technology and Aerospace & Defense ETF (WAR - Free Report) .

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