Had You Invested $1,000 in Northrop Grumman or Lockheed Martin a Decade Ago, Here's What You'd Have Now

"Both companies have spent the past decade riding rising U.S. and allied defense budgets, with Iran-related tensions providing recurring urgency. Northrop Grumman built its long-term thesis around nuclear modernization, most notably the B-21 Raider stealth bomber and the Sentinel ICBM program, platforms with decades of contracted revenue ahead."

"Both stocks took meaningful hits in 2025 from program charges. Northrop faced a $477 million B-21 loss provision, pushing shares near $464 in April 2025. Lockheed took a $950 million classified Aeronautics program charge and a $570 million Canadian Maritime Helicopter loss in Q2 2025, dragging shares to roughly $413 in July 2025. Both recovered sharply."

"On March 2, 2026, as news broke of U.S. and Israeli strikes on Iranian nuclear and military sites during Operation Epic Fury, defense stocks moved opposite to nearly everything else. Northrop Grumman jumped 4.6% in premarket trading, while Lockheed Martin rose more than 3%, even as the broader S&P 500 sold off."

Northrop Grumman and Lockheed Martin represent defensive portfolio assets that move counter to broader market downturns during geopolitical crises. Both companies benefited from rising U.S. and allied defense spending over the past decade, with Iran-related tensions providing recurring demand drivers. Northrop's strategy centers on long-term nuclear modernization programs including the B-21 Raider stealth bomber and Sentinel ICBM, while Lockheed focuses on the widely-deployed F-35 fighter and missile systems like PAC-3, JASSM, and HIMARS. Despite significant program charges in 2025—Northrop's $477 million B-21 loss and Lockheed's $1.52 billion in combined charges—both stocks recovered sharply. Over ten years, Northrop returned 363.82% versus Lockheed's 291.66%, both substantially outpacing the S&P 500's 239.65% return.

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