Defense Spending Surge Boosts Lockheed & RTX Outlook
Major defense contractors beat Q3 estimates as defense spending surges ahead of the 2025 US budget. Lockheed Martin reported EPS of $6.95 on $18.6bn revenue and raised its 2025 outlook to $74.25–74.75bn revenue and $22.15–22.35 EPS. RTX lifted guidance to adjusted EPS of $6.10–6.20 and $86.5–87bn revenue, backed by a $251bn backlog. GE Aerospace and Northrop Grumman also raised targets after strong engine deliveries and profit beats. The rise in defense spending signals sustained government demand and could influence macro trends like USD strength and inflation, with potential knock-on effects for crypto markets.
Neutral
While higher defense spending and robust earnings guidance can bolster market confidence, they also point to larger US deficits and possible Fed tightening to curb inflation. This dynamic creates offsetting pressures on crypto assets: stronger risk sentiment versus stronger USD and rate hikes. As a result, the net impact on crypto prices is expected to be neutral.