Lockheed and RTX backlogs hit records as missile demand lifts defense contractors’ third quarter

By Garrett Sloane

WASHINGTON — Four of the Pentagon’s largest suppliers reported third-quarter results last week, and their filings point the same way. Missile and air-defense production is driving growth, and order books are at records. Lockheed Martin, RTX and Northrop Grumman together reported about $741.6 billion in backlog, which is future work under contract or award. Lockheed’s portion alone grew 27% in a single quarter.

The Washington Inquisitor compiled the figures below from the earnings releases each company filed with the Securities and Exchange Commission as exhibits to Form 8-K. Every number links to the filing it came from. General Dynamics, HII, L3Harris and Boeing report this week. Their dates are listed at the end.

A note on terms. Backlog is a company-reported measure of revenue it expects to recognize under contracts it has won. It is not the same as money the government has obligated, and it can include contract values that Congress has not yet funded. Several companies also report “adjusted” figures that exclude items they consider unusual. Where we use those, they are labeled.

The headline numbers

Lockheed’s quarter ended Sept. 27, 2026. RTX and Northrop report on quarters ending Sept. 30. Lockheed’s net earnings rose from $1,619 million a year earlier, and its diluted EPS rose from $6.95. RTX’s net income rose from $1,918 million and its EPS from $1.41. Northrop’s net earnings rose from $1,100 million and its EPS from $7.67.

RTX’s $340 billion backlog includes $176 billion commercial and $164 billion defense. That is relevant because RTX’s Collins Aerospace and Pratt & Whitney units sell heavily to airlines. On a defense-only basis, Lockheed’s $292.0 billion is the largest backlog of the three.

Lockheed: a $52.5 billion interceptor award

Lockheed said its backlog grew 27% from the second quarter to a record $292.0 billion. That includes $52.5 billion associated with the multiyear award to produce PAC-3 Missile Segment Enhancement interceptors. The PAC-3 MSE is the hit-to-kill interceptor fired by the Patriot air and missile defense system. That one award accounts for about 18% of Lockheed’s total backlog.

Missiles and Fire Control grew fastest, with sales up $877 million, or 24%. Lockheed attributed $480 million of that to production ramps on PAC-3 and the Terminal High Altitude Area Defense system. Another $330 million came from the Guided Multiple Launch Rocket System and the Precision Strike Missile. Aeronautics sales rose $958 million, mostly from the F-35 (up $710 million) and the C-130 (up $270 million). Lower F-16 sales partly offset those gains.

The company raised its 2026 outlook for the second consecutive quarter. It now projects sales of about $80.0 billion to $82.0 billion, diluted EPS of about $30.35 to $30.75, and free cash flow of about $7.8 billion to $8.0 billion, up from $7.0 billion to $7.2 billion in July.

Cash from operations fell to $3,438 million from $3,728 million a year earlier, and free cash flow fell to $2,999 million from $3,347 million. Lockheed attributed the decline mainly to higher customer receipts in the third quarter of 2025. During the quarter the company spent $439 million on capital expenditures and $599 million on independent research and development, according to the release.

Lockheed also flagged a risk. It said it remains in negotiations on F-35 production lots 20 and higher. Its costs on the Lot 20 advance acquisition contract “began to exceed the current contractual authorization and funding” during the quarter. “Without additional contractual authorization and funding from the U.S. Government,” the release said, its results of operations, cash flows and financial condition “will be negatively impacted in future periods.”

RTX: Raytheon segment up 14%

RTX’s adjusted EPS of $2.26 was up 33% from $1.70. RTX said that figure included $0.25 per share from cost recovery under the International Emergency Economic Powers Act. Operating cash flow was $2.9 billion, including about $0.3 billion of that recovery. Free cash flow was $2.1 billion. RTX reported more than $81 billion in new commercial and defense awards, and said it was awarded multiyear undefinitized production contracts for Tomahawk and AMRAAM in the quarter. An undefinitized contract action lets work begin before final terms and prices are set.

The Raytheon segment’s operating profit rose 32%, to $1,133 million from $859 million, and its return on sales rose to 14.1% from 12.2%. RTX said the segment’s sales growth came from higher volume on “naval programs and land and air defense systems, including Patriot, Standard Missile, and Tomahawk.”

RTX raised its full-year outlook to adjusted sales of $97.0 billion to $97.5 billion, up from $95.0 billion to $96.0 billion. It now projects adjusted EPS of $7.65 to $7.75, up from $7.10 to $7.25, and free cash flow of $9.0 billion to $9.2 billion, up from $8.50 billion to $8.75 billion.

Northrop: Sentinel, submarines and restricted work

Northrop reported net awards of $16.4 billion in the quarter, about 1.5 times sales. Its significant new awards included $4.6 billion for restricted, or classified, programs, $2.0 billion for the Sentinel intercontinental ballistic missile, $1.4 billion for Virginia-class submarines, $1.3 billion for the F-35 and $1.0 billion for the E-2.

As of Oct. 20, Northrop’s 2026 guidance calls for sales of $43.75 billion to $44.25 billion and mark-to-market-adjusted EPS of $29.35 to $29.75, up from a prior range of $28.60 to $29.10. Segment operating income guidance rose to $4.94 billion to $5.04 billion.

GE Aerospace’s defense unit

GE Aerospace is mainly a commercial engine maker, but its Defense & Propulsion Technologies segment includes military engines. Segment orders rose 18%, to $4,269 million from $3,607 million. Revenue rose 7%, to $3,469 million from $3,251 million, and operating profit rose to $475 million from $440 million. GE said it continues to expect that segment’s 2026 operating profit to be $1.6 billion to $1.7 billion.

What the numbers do and do not show

The results line up with the administration’s push to rebuild munitions stockpiles and expand air and missile defense, including through multiyear procurement contracts meant to give suppliers longer-term demand.

The filings also show where terms are not yet settled. Lockheed’s F-35 disclosure shows the company incurring costs beyond current contractual authorization while negotiations continue. RTX’s Tomahawk and AMRAAM awards are undefinitized, meaning final prices are still to be negotiated. Congress has long scrutinized the use of undefinitized contract actions. The filings make no claim about that debate, and none of these companies is accused of wrongdoing.

None of these figures is Pentagon spending. A company’s sales include commercial and foreign customers, and backlog can include awards Congress has not yet fully funded. For Pentagon obligations by state and company, see the Inquisitor’s analysis of USAspending data scheduled for 5:25 p.m. ET today. Yesterday’s look at Raytheon contract ceilings examined the difference between ceilings and obligated money.

Still to come this week

General Dynamics, based in Reston, Va., will report in the middle of a leadership change. In an Oct. 7 release filed with the SEC, the company said its board elected President Danny Deep as chief executive, effective Jan. 1, 2027. Phebe Novakovic, CEO since 2013, will become executive chairman.

Methodology

Figures come from each company’s third-quarter earnings release, filed with the SEC as an exhibit to Form 8-K and linked above. In the tables, M means millions and B means billions. Percentage changes are as reported by the companies or computed by the Inquisitor from the reported figures. The $741.6 billion combined backlog and the 18% PAC-3 share are the Inquisitor’s calculations from reported figures. These are company-reported numbers that the Inquisitor has not independently audited.

Request for comment

The Washington Inquisitor sought comment from Lockheed Martin, RTX, Northrop Grumman, GE Aerospace, General Dynamics, Boeing, HII and the Center for Strategic and International Studies. This story will be updated with any responses.

Featured image: A Patriot M903 launching station under the northern lights at Eielson Air Force Base, Alaska, March 5, 2022. U.S. Air Force photo by Senior Airman Joseph P. LeVeille, public domain, via Wikimedia Commons.