Northrop Grumman Corp. and General Dynamics Corp. reported better-than-expected quarterly results and raised their full-year profit guidance, completing a clean sweep of improved performance among big U.S. defense contractors that have become more efficient and turned to more lucrative international business.

The two companies' shares hit 52-week highs Wednesday as their aerospace units drove the outperformance, with Northrop delivering more sections of the F-35 fighter and General Dynamics booking additional deals for its Gulfstream business jets. Other defense stocks also rose sharply.

Big defense companies have shed tens of thousands of jobs since the Pentagon budget started declining in 2010, driving gains in productivity at a time when profits have also been boosted by the defense department repaying them billions of dollars in pension contributions following a series of regulatory changes.

Northrop Grumman shares were recently up 7.5% at $175.65, with analysts expecting the company to boost its sector-leading stock buyback program later this year, while General Dynamics rose 4.8% to $151.07.

Pentagon spending on weapons and systems isn't expected to bottom until late next year or even 2017, according to executives, but budgets have become less volatile, helping long-term planning and driving a recent surge in deal activity.

General Dynamics boosted its full-year guidance by 9%, by far the biggest raise among peers, and attributed part of its strong performance to Gulfstream, even as rivals suffer a slowdown in once-buoyant emerging markets.

The business-jet market has had a stuttering recovery over the past three years following its collapse during the 2008 recession, but concerns have emerged in recent months of renewed weakness in demand for larger planes from Gulfstream and Bombardier Inc. that can fly transcontinental U.S. or to Asia and Europe.

General Dynamics Chief Executive Phebe Novakovic said Gulfstream has continued to book new orders, noting what she called the "pleasing" return of S&P 500 members, as well as private U.S. companies and high net-worth individuals.

Gulfstream booked almost $1 billion in new orders during the second quarter in what Ms. Novakovic said was its best performance in seven years as buyers moved to replace aging fleets with new planes.

"We had good demand across our entire portfolio," she said, adding that corporate and individual buyers rather than jet-sharing services such as NetJets Inc. were boosting the Gulfstream backlog.

North American customers have become the focus for jet makers as the combination of China's cooling economy, Russian sanctions and falling energy prices hit a non-U. S. market that in recent years accounted for two-thirds of demand for larger jets such as the G650, which carries a $65 million list price and can carry as many as 18 passengers.

General Dynamics also benefited from overseas sales of its tanks and armored cars as well as military and commercial ships and submarines.

The company boosted its guidance for 2015 earnings from continuing operations to a range of $8.70 to $8.80 a share from its prior guidance of $8.05 to $8.10 a share. Second quarter profit increased to $752 million from to $541 million a year earlier, with per-share earnings rising to $2.27 from $1.58. Revenue climbed 5.5% to $7.88 billion.

Ms. Novakovic said the company wasn't looking at any large-scale deals, despite the recent surge in defense-sector merger and acquisition activity, including plans by Lockheed Martin Corp. to shed most of its nongovernment business. General Dynamics is also a major supplier of federal IT services.

Wes Bush, Northrop's chief executive, said on an investor call that the company remains active in seeking potential acquisitions, though hadn't found a major deal that added value.

In the absence of attractive deals, Northrop has been the most prolific stock repurchaser in the sector and spent another $1.1 billion on buybacks during the second quarter. It is 90% of the way to reaching its year-end goal of retiring 60 million shares, and while Mr. Bush didn't provide details of any follow-on program, he hinted buybacks would remain a priority.

The maker of Global Hawk drones and large parts of the Lockheed-led F-35 completed a set of beats and raises by the big prime defense contractors, which also include Boeing Co. and Raytheon Co.

Northrop lifted its 2015 profit guidance to a range of $9.55 to $9.70 a share from an earlier forecast of $9.40 to $9.60 a share. Net profit of $531 million in the second quarter increased to $511 million a year earlier, with per-share earnings rising to $2.74 from $2.37. Revenue dropped 2.4% to $5.9 billion.

Lisa Beilfuss and Chelsey Dulaney contributed to this article.

Write to Doug Cameron at doug.cameron@wsj.com

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