Defense Firms Lockheed Martin and RTX Set to Profit from $95 Billion Weapons Funding Amid Ongoing Conflicts

Lockheed Martin Corp and RTX Corp are set to benefit from a whopping $95 billion in new weapons funding as conflicts in Ukraine and Gaza continue to drive demand for expensive military equipment. President Joe Biden recently signed a bill into law that provides billions of dollars in aid to Ukraine and Israel, with a significant portion allocated for defense spending.

According to the Pentagon’s acquisitions chief Bill LaPlante, the new funding has led to the establishment of factories across the country to meet the increased demand for weapons and equipment. The ongoing conflicts in Ukraine and Israel have resulted in a surge in orders for munitions such as Patriot air defense interceptors and artillery rounds.

RTX’s CFO Neil Mitchill highlighted the need to replenish stockpiles of munitions like Tomahawk and AMRAAM missiles, which have been used in defense operations in Ukraine and to protect shipping lanes in the Red Sea. European allies have also expressed interest in purchasing U.S. weaponry to bolster their defenses in light of the conflicts.

Lockheed’s CEO Jim Taiclet expressed optimism about future growth opportunities for the company, citing the expected budget requests and supplemental funding in the coming years. However, both Lockheed and RTX have not revised their sales forecasts for 2024 due to uncertainty surrounding the timing of the funding flow to defense firms.

Despite the challenges, RTX and Lockheed remain key players in the defense industry, with RTX manufacturing the Patriot missile defense system and Lockheed producing the PAC-3 MSE interceptors. The $95 billion supplemental funding includes investments to expand production capacity for various defense systems, including 155 millimeter shells and shipyards.

As the conflicts in Ukraine and Gaza continue to drive demand for military equipment, Lockheed Martin Corp and RTX Corp are poised to capitalize on the opportunities presented by the new weapons funding. With a focus on expanding production capacity and meeting the growing demand for munitions, these defense contractors are set to play a crucial role in supporting U.S. and allied forces in the ongoing conflicts.