RTX, Northrop Grumman Rise In Defense-Heavy Earnings Week | Investor's Business DailyMUST-VIEW FOR INVESTORS: [See The Best Online Brokers For 2026]---RTX advanced after topping quarterly estimates early Tuesday. Northrop Grumman climbed in a buy zone after beating views, but its earnings guidance and free cash flow outlook fell short. Among other defense contractors, General Dynamics (GD) releases results on Wednesday, followed by Lockheed Martin (LMT) reports Thursday. Meanwhile, defense stocks have been ...

Core Viewpoint - Shares of defense companies Lockheed Martin Corp (LMT) and Huntington Ingalls Industries Inc (HII) have risen following the U.S. attack on Venezuela and the capture of leader Nicolás Maduro, with Wall Street betting on limited geopolitical escalation [1] Group 1: Stock Performance - LMT shares increased by 2.1%, trading at $507.57, with a 17.7% gain over the past nine months, bouncing off the $480 support level [2] - HII shares rose by 4%, trading at $363.86, reaching a record high of $365.92, and achieving an 80% gain for 2025, marking its best annual performance since 2013, with over 98% increase in the last nine months [3] Group 2: Options Activity - Both LMT and HII are experiencing unusual options activity, with LMT seeing double the typical call volume and HII seeing triple [4][5] - The most active options for LMT is the weekly 1/9 500-strike put, while for HII, it is the June 460 call, with new positions being opened in both [4][5]

Financial Performance & Contract Coverage - Revenue for 9M 2025 increased to $575.5 million from $528.6 million in 9M 2024[15, 28] - Net income for 9M 2025 increased to $306.7 million from $253.9 million in 9M 2024[15, 28] - Adjusted EBITDA for 9M 2025 increased to $396.7 million from $371.1 million in 9M 2024[15, 28] - $778 million in contracted revenues were added in 9M 2025[15, 20] - Contract cover stands at 100% for 2025, 96% for 2026, and 74% for 2027[15] - Contracted revenues as of September 30, 2025, totaled $1.92 billion[20] Capital Allocation & Balance Sheet - The annualized dividend is set to increase to $2.50 per share[15, 22] - $33.0 million remains authorized for opportunistic share buy-backs[22, 23, 28] - The weighted average cost of debt is 4.34%, with a weighted average maturity of 4.7 years[28, 71] - SOFR is capped at 0.64% for approximately 76% of floating rate debt[28, 29, 38, 71] - Average break-even rates have been reduced to $9,578 per vessel per day[71] Market Dynamics & Strategy - Approximately 74% of global containerized trade volume occurs in non-Mainlane trades, which are predominantly served by mid-sized & smaller ships[44] - Red Sea disruption has absorbed approximately 10% of effective global capacity[46]

All right, Jeeoff, we got to start here. Has the thesis changed at all with everything that's going on in the Middle East. I I have a feeling that you researched and put this piece together before all this quite ramped up.Yes, you're absolutely right, Frank. And it is tough from a micro perspective to look at every tweet that comes out. It seems like the market is kind of tilting hour by hour, but I think in the bigger picture, this March higher to retest these S&P 500 all-time highs is underway.Call it a m ...

Financial Performance - Revenue increased to $191 million in 1Q 2025, up from $179.6 million in 1Q 2024[16, 27] - Net income increased to $121 million in 1Q 2025, up from $89.5 million in 1Q 2024[16, 27] - Adjusted EBITDA increased to $132.3 million in 1Q 2025, up from $125.4 million in 1Q 2024[16, 27] - Normalized net income increased to $94.3 million in 1Q 2025, up from $89.1 million in 1Q 2024[16, 27] Contract Coverage and Revenue - $352 million in contracted revenues were added in 1Q 2025[16, 20, 66] - Contract cover is 93% for 2025 and 75% for 2026[16] - Contracted revenues as of March 31, 2025, were $1.87 billion with an average remaining contract cover of 2.3 years[20] Capital Allocation and Debt Management - The annualized dividend increased to $2.10 per share[16, 21, 22, 66] - $85 million re-fi pushes weighted average debt maturity to 5.1 years & cost to 3.99%[27, 66] - Average break-even cash flows reduced to $9,314 per vessel per day[66] Fleet and Market Dynamics - Sub-10,000 TEU vessels are the focus, serving non-mainlane trades which constitute approximately 74% of global containerized trade volume[43] - Red Sea disruption has absorbed approximately 10% of effective global capacity[45] - The orderbook to fleet ratio for the company's focus segments (2,000 – 9,999 TEU) is 11.5%[63]