Northrop Grumman raised its annual profit forecast and topped Wall Street estimates for second-quarter revenue Tuesday, aided by sustained demand for its military aircraft and defense systems as geopolitical tensions simmer.

Shares of the company rose about 3% in premarket trading.

A protracted Russia-Ukraine war and conflict in the Middle East have boosted demand for weapons from defense contractors such as Northrop.

The company, which makes the B-2 Spirit stealth bombers that were used in U.S. strikes on Iran's nuclear sites in June, is also expected to benefit from President Donald Trump's defense budget for next year that seeks more missiles and drones.

Northrop had cut its 2025 profit forecast in April to between $24.95 per share and $25.35 per share after manufacturing costs spiraled in an attempt to ramp production of its B-21 stealth bombers, causing a $477 million hit.

It now expects annual profit per share of $25.00 to $25.40

Northrop, however, narrowed its revenue forecast for the year to between $42.05 billion and $42.25 billion, compared with $42 billion to $42.5 billion earlier.

Despite the strong demand, supply chain issues caused by the COVID-19 pandemic linger, affecting production in industries including defense.

The defense contractor's second-quarter sales rose to $10.35 billion, compared with analysts' average estimate of $10.07 billion, according to data compiled by LSEG.

It reported a quarterly net income of $1.17 billion, or a per-share profit of $8.15, compared with the $940 million, or $6.36 per share, a year ago.