Soaring Global Arms Demand Drives Profits in Military-Industrial Sector

U.S. defense contractor Northrop Grumman Corp. on Thursday forecast full-year sales rising past Wall Street estimates as it leads a host of manufacturers benefiting from rising global demand for military weaponry.

Reuters reports the U.S. and its allies have been buying more arms and ammunitions and supporting Ukraine with billions of dollar in military aid after Russia invaded the country last year.

During the quarter, Northrop debuted its new B-21 “Raider” jet, the first of a new fleet of long-range stealth nuclear bombers for the U.S. Air Force, as Breitbart News reported.

“We’re raising our sales outlook for 2023 and expect to deliver strong multi-year cash flow growth,” Northrop Grumman Chief Executive Kathy Warden said.

The Falls Church, Virginia-based company expects 2023 sales between $38 billion and $38.4 billion, ahead of the average analyst estimate of $37.86 billion, and an adjusted profit of $21.85 to $22.45 per share, compared with estimates of $22.30, according to Refinitiv IBES data cited by Reuters. – READ MORE