“I Don’t Buy IPOs”: Veteran Investor Names 3 Profitable Space Stocks to Own Instead of SpaceX
Andrew Sather, co-host of The Investing for Beginners Podcast, avoids SpaceX's IPO due to uncertainty and potential insider selling. He prefers profitable space companies: Northrop Grumman (NOC), Lockheed Martin (LMT), and L3Harris (LHX). NOC reported Q2 2026 Space Systems revenue of $2.753B, up 4% YOY. LMT reported Q2 Space revenue of $3.496B, up 6% YOY. LHX reported Space & Mission Systems revenue of $3B, up 7% YOY.
How this was made
The 30-second read
Why it matters
Earnings beats and raised guidance suggest continued strength in the defense‑space sector, offering traders clear fundamentals to act on.
Market read
Earnings and guidance updates for three large defense stocks provide actionable insight for sector‑focused traders.
What to watch
Potential supply‑chain constraints and defense budget uncertainties could temper growth.
Background
The article contrasts profitable public space companies with the upcoming SpaceX IPO, emphasizing earnings and guidance for NOC, LMT, and LHX.
Ticker impact
Northrop Grumman reported Q2 2026 Space Systems revenue of $2.753 bn, up 4% YoY, and gave full‑year guidance of ~$11 bn sales at low‑10% margins.
Potential modest upside if guidance is viewed as beat; watch for short‑term pullback.
Earnings beat on revenue and clear guidance for a large segment; market may price in incremental upside.
Lockheed Martin posted Q2 space revenue of $3.496 bn, up 6% YoY, and guided 2026 space sales of $13.85‑$14.05 bn.
Likely continued rally if investors focus on growth outlook.
Robust earnings and upward‑revised guidance for a high‑growth segment suggest bullish sentiment.
L3Harris reported space & mission systems revenue of about $3 bn, up 7%, and raised 2026 guidance to $11.7 bn after winning the AMDT‑3 constellation contract.
Potential upside as market digests higher guidance and new contract.
Guidance lift and sizable contract indicate strong future cash flow, likely positive for price.
Market effects
Highlights profitability of space segments, may boost sector ETFs and related defense stocks.
U.S. defense and aerospace sector gains visibility.
Reinforces confidence in major U.S. space contractors worldwide.
Counterpoint
Investors may still avoid exposure due to broader market volatility or geopolitical risk.
Key entities
- CompanyNorthrop Grumman
Defense contractor with profitable space segment.
- CompanyLockheed Martin
Major aerospace and defense firm.
- CompanyL3Harris Technologies
Defense electronics and space systems provider.
