By Spencer Jakab
This is an interesting time to be a U.S. defense contractor.
Every U.S. manufacturer faces increased costs because of import tariffs and other countries' countermeasures, but those making weapons have reason to be both worried and hopeful. As the Trump administration casts doubt on foreign defense commitments at the same time that it has pledged to spend more on the U.S. military, global armaments spending is on the rise-particularly in the European Union. At the same time, defense contractors have a more domestic supply chain than most manufacturers given the sensitive nature of what they do.
As reporter Sharon Terlep explains, though, "there's nobody in this industry that is reliant entirely on the United States." Investors seemed surprised by cautious talk from the more defense-reliant companies in the sector. Last week's quarterly reports from Northrop Grumman, RTX and General Dynamics sparked stock drops on the days the earnings were released. More commercially-focused GE Aerospace and Boeing both saw their shares rise by about 6%. Listen to find out more:
What's News in Earnings: Defense Contractors Thrive in Uncertain World
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April 29, 2025 12:52 ET (16:52 GMT)
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