Lockheed Martin Corporation, a security and aerospace company, engages in the research, design, development, manufacture, integration, and sustainment of technology systems, products, and services worldwide. The company operates through Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space segments. The Aeronautics segment offers combat and air mobility aircraft, unmanned air vehicles, and related technologies. The Missiles and Fire Control segment provides air and missile defense systems; tactical missiles and air-to-ground precision strike weapon systems; logistics; fire control systems; mission operations support, readiness, engineering support, and integration services; manned and unmanned ground vehicles; and energy management solutions. The Rotary and Mission Systems segment offers military and commercial helicopters, surface ships, sea and land-based missile defense systems, radar systems, sea and air-based mission and combat systems, command and control mission solutions, cyber solutions, and simulation and training solutions. The Space segment offers satellites; space transportation systems; strategic, advanced strike, and defensive systems; and classified systems and services in support of national security systems. This segment also provides network-enabled situational awareness and integrates space and ground global systems to help its customers gather, analyze, and securely distribute critical intelligence data. It serves primarily serves the U.S. government, as well as foreign military sales contracted through the U.S. government. The company was founded in 1912 and is based in Bethesda, Maryland.

Lockheed Martin Corporation

(RTTNews) - Lockheed Martin Corp., based in Orlando, Florida, has been awarded an undefinitized letter contract with a ceiling value of $328,500,000 for Department of Defense and Foreign Military Sales (FMS) programs. The contract covers Sniper, Infrared Search and Track, and Low Altitude Navigation and Targeting Infrared for Night hardware production for fixed-wing aircraft.
Under the agreement, Lockheed Martin will procure and deliver fifty-five Infrared Search and Track Legion Enhanced Sensor pods, processors, pod containers, and processor containers to address the urgent operational needs of the Taiwan Air Force. Work will be carried out in Orlando, Florida, with an expected completion date of June 30, 2031. This sole source acquisition involves FMS to Taiwan, with $157.30 million in FMS funds obligated at the time of award. The contracting activity is managed by the Air Force Life Cycle Management Center, Electronic Systems Contracting Branch, Warner Robins, Georgia.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

U.S. Air Force Awards Lockheed Martin $328.5 Mln Contract For Taiwan Sensor Systems

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Schwab US Dividend Equity ETF (Symbol: SCHD) where we have detected an approximate $904.9 million dollar outflow -- that's a 1.2% decrease week over week (from 2,640,000,000 to 2,607,250,000). Among the largest underlying components of SCHD, in trading today Bristol Myers Squibb Co. (Symbol: BMY) is trading flat, Lockheed Martin Corp (Symbol: LMT) is down about 0.5%, and Altria Group Inc (Symbol: MO) is lower by about 0.2%. For a complete list of holdings, visit the SCHD Holdings page » The chart below shows the one year price performance of SCHD, versus its 200 day moving average:
Looking at the chart above, SCHD's low point in its 52 week range is $23.87 per share, with $28.845 as the 52 week high point — that compares with a last trade of $27.52. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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Institutional Holders of OMP
Institutional Holders of PCMM
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Notable ETF Outflow Detected - SCHD, BMY, LMT, MO

Huntington Ingalls Industries Inc.’s HII business unit, Newport News Shipbuilding, recently won a contract valued at nearly $97.7 million for additional long-lead materials to support the refueling and complex overhaul of the USS Harry S. Truman (CVN 75) aircraft carrier.
The work will be carried out in Newport News, VA, with completion anticipated by September 2026. The deal has been provided by the Naval Sea Systems Command in Washington, D.C.
HII’s Expertise in Aircraft Carrier Development
Aircraft carriers play a crucial role in a nation’s ability to command, control and coordinate naval operations while protecting its coastlines. As the United States continues to lead the global naval defense sector, Huntington Ingalls’ position as one of the key suppliers of U.S. aircraft carriers remains highly significant.
Huntington Ingalls’ Newport News unit has built more than 31 aircraft carriers for the U.S. Navy since 1933, including all 10 Nimitz-class aircraft carriers currently in active service and the first ship of the next-generation Gerald R. Ford-class (CVN 78) aircraft carriers.
To reinforce its leadership in U.S. naval defense, HII is currently developing the next-generation Gerald R. Ford-class aircraft carriers. With decades of experience in naval shipbuilding, Huntington Ingalls benefits from a steady stream of contracts, supporting strong revenue growth prospects.
Growth Outlook & Opportunities for Other Defense Stocks
Rising tensions between nations have led governments worldwide to enhance their naval capabilities by investing more in naval vessels, including aircraft carriers, to strengthen their maritime warfare readiness.
To this end, the Mordor Intelligence firm projects the aircraft carrier ship market to witness a CAGR of 12.75% during 2025-2030. This growth outlook is expected to favor Huntington Ingalls, the United States’ largest shipbuilder and its sole manufacturer of aircraft carriers.
Other defense players that can gain from the expanding aircraft carrier ship market are discussed below:
RTX Corporation RTX: Its Raytheon business unit provides the SPY-6 radar family, which is deployed on U.S. Navy aircraft carriers. These radars offer advanced air and missile defense capabilities across seven different classes of warships.
RTX has a long-term (three to five years) earnings growth rate of 10.21%. The Zacks Consensus Estimate for 2025 sales stands at $87.07 billion, which calls for an increase of 7.8%.
BAE Systems plc BAESY: The company designs, commissions, builds, repairs and maintains a broad spectrum of complex naval vessels, including aircraft carriers. Its Queen Elizabeth-class aircraft carriers are the largest warships ever built in the United Kingdom.
BAESY boasts a long-term earnings growth rate of 14.57%. The Zacks Consensus Estimate for 2025 sales is pinned at $40.79 billion, which implies a rise of 63.3%.
Lockheed Martin Corp. LMT: The company’s AN/SLQ-32 electronic warfare systems are installed on all U.S. aircraft carriers, offering early detection, threat analysis, warning and defense against anti-ship missiles.
LMT has a long-term earnings growth rate of 11.94%. The Zacks Consensus Estimate for 2025 sales stands at $74.44 billion, which calls for an increase of 4.8%.
HII Stock Price Movement
In the past six months, HII shares have climbed 38% compared with the industry’s growth of 14.1%.
Image Source: Zacks Investment Research
HII’s Zacks Rank
HII currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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HII Secures Contract to Support USS Harry S. Truman Aircraft Carrier

Textron Inc.’s TXT subsidiary, Textron Systems Corporation, recently revealed that it has secured a contract from Arco Worldwide Services to supply its Aerosonde vertical takeoff and landing (“VTOL”) unmanned aircraft system (“UAS”) to Tantita Security Services.
The deal involves the delivery of three Aerosonde Mk. 4.7 VTOL UAS in a fully International Traffic in Arms Regulations-free configuration, enabling easy export to international customers. These aircraft are expected to enhance security capabilities for protecting Nigeria’s critical oil and gas infrastructure.
The contract also includes options for training and additional aircraft to support planned capability expansion and builds on a previous Foreign Military Sale contract with Nigeria.
Overview of TXT’s Aerosonde UAS
TXT’s Aerosonde UAS delivers multi-mission capability, drawing on a proven family of systems that have logged more than 700,000 flight hours in some of the world’s most demanding environments. It has been deployed globally and currently operates on more than 10 U.S. Navy ships. The system supports a variety of payload configurations, offering both VTOL and fixed-wing options.
With its enhanced size, weight and power capacity, the UAS can perform day-and-night imaging, communications relay, signals intelligence and an additional customer-selected payload all within a single sortie.
Growth Potential for TXT and Other Defense Stocks
With rapid technological advancements, the UAS has increasingly become a crucial component of national defense strategies. Its demand has been rising recently due to low operational costs, zero risk to personnel and superior surveillance capabilities.
Per a report by the Mordor Intelligence firm, the military unmanned aerial vehicles (“UAV”) market is projected to witness a CAGR of 11.9% during 2025-2030. These positive industry trends are likely to provide significant growth opportunities for Textron in the years ahead.
Considering the solid growth opportunities offered by the global UAV market, other defense primes like The Boeing Company BA, Lockheed Martin Corp. LMT and Northrop Grumman Corp. NOC should also benefit.
Boeing offers a comprehensive portfolio of UAS, delivering intelligent, persistent, and efficient solutions for diverse missions and customers worldwide. Its MQ-28 is an uncrewed collaborative combat aircraft that leverages advanced human-machine technology as a force multiplier. Designed to operate alongside existing military aircraft, it enhances operational effectiveness, endurance and survivability in highly contested environments.
BA boasts a long-term (three to five years) earnings growth rate of 31.33%. The Zacks Consensus Estimate for 2025 sales stands at $87.26 billion, which calls for an increase of 31.2%.
Lockheed Martin provides cutting-edge autonomous systems to the U.S. military and allied forces, designed to fulfill the needs of the most demanding missions. The Stalker is a compact, quiet and operationally proven Group 2 UAS, offering exceptional long-endurance imaging capabilities in diverse contested environments and is actively employed by Special Forces globally.
LMT has a long-term earnings growth rate of 11.94%. The Zacks Consensus Estimate for 2025 sales stands at $74.44 billion, which implies a jump of 4.8%.
Northrop Grumman is a leading provider of autonomous systems, offering a robust portfolio of UAVs. Some of its products include Global Hawk, MQ-4C Triton, Bat Unmanned Air System, and NATO Alliance Ground Surveillance.
NOC has a long-term earnings growth rate of 4.19%. The Zacks Consensus Estimate for 2025 sales stands at $41.88 billion, which suggests an increase of 2.1%.
TXT Stock Price Movement
In the past three months, shares of Textron have risen 4.1% compared with the industry’s growth of 3.2%.
Image Source: Zacks Investment Research
TXT’s Zacks Rank
Textron currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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TXT to Supply Aerosonde VTOL UAS to Tantita Security Services

Huntington Ingalls Industries Inc.’s HII business unit, Ingalls Shipbuilding, recently stated that it has delivered the Arleigh Burke-class guided missile destroyer Ted Stevens (DDG 128) to the U.S. Navy. This marks the second Flight III destroyer handed over by Ingalls shipbuilders.
HII: A Frontline Manufacturer of Guided Missile Destroyers
Naval vessels, including guided missile destroyers, are vital to a nation’s ability to command, control and coordinate maritime operations while safeguarding its coastline. As a cornerstone of global defense, the United States maintains formidable naval strength, with Huntington Ingalls standing out as a leading naval defense contractor.
HII’s Ingalls Shipbuilding has a long track record of designing, constructing and maintaining amphibious ships, destroyers and cutters for the U.S. Navy and the U.S. Coast Guard. The company is also a prominent contractor for surface combatant vessels like Arleigh Burke-class guided missile destroyers.
Its Arleigh Burke-class destroyers are advanced, multi-mission platforms capable of supporting missions ranging from peacetime operations and crisis response to sea control and power projection in line with U.S. military objectives.
To date, Ingalls Shipbuilding has delivered 36 Arleigh Burke-class destroyers to the U.S. Navy, including the first Flight III vessel, USS Jack H. Lucas (DDG 125) and Ted Stevens (DDG 128).
Opportunities for HII and Other Defense Stocks
Rising geopolitical tensions and territorial disputes have prompted nations to strengthen their naval capabilities, driving increased spending on naval warships.
The Fortune Business Insights firm predicts that the global naval vessels and surface combatant market will witness a CAGR of 5.6% between 2025 and 2030. This growth outlook bodes well for HII, which boasts a diverse portfolio of guided missile destroyers.
Other defense companies that are likely to enjoy the perks of the expanding naval vessels and surface combatant market have been discussed below:
General Dynamics Corporation GD: The company’s Marine Systems segment is a premier designer and builder of nuclear-powered submarines and a leading provider of surface combatant and auxiliary ship design and construction for the U.S. Navy.
GD has a long-term (three to five years) earnings growth rate of 13.07%. The Zacks Consensus Estimate for 2025 sales stands at $51.97 billion, which calls for an increase of 8.9%.
BAE Systems plc BAESY: The company constructed the Type 45 Destroyers for the UK Ministry of Defence. These vessels are primarily designed to deliver advanced air-defense capabilities, safeguarding national, allied and coalition forces from hostile aircraft and missile threats. It also supplies cutting-edge combat systems and radar technologies that significantly enhance the Type 45 Destroyers’ overall warfighting effectiveness.
BAESY boasts a long-term earnings growth rate of 14.57%. The Zacks Consensus Estimate for 2025 sales is pinned at $40.79 billion, which implies a rise of 63.3%.
Lockheed Martin Corp. LMT: The company manufactures Littoral Combat Ships (“LCS”). Its Freedom-variant LCS is a robust and adaptable warship designed to meet the U.S. Navy’s evolving mission requirements. Its speed, robustness and versatility make it an essential asset for critical operations.
LMT has a long-term earnings growth rate of 11.94%. The Zacks Consensus Estimate for 2025 sales stands at $74.44 billion, which calls for an increase of 4.8%.
HII Stock Price Movement
In the past six months, HII shares have rallied 40.4% compared with the industry’s rise of 14.6%.
Image Source: Zacks Investment Research
HII’s Zacks Rank
HII currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Huntington Ingalls Ships Arleigh Burke-Class Destroyer to US Navy

Defense stocks, particularly those with European exposure, fell sharply on Dec 15, 2025 (as reported by CNBC), after President Zelenskyy indicated that Ukraine is willing to forgo its long-term NATO membership bid in exchange for security guarantees.
This news, while sparking hopes of progress toward a peace framework, cooled near-term demand expectations for Europe’s arms makers, resulting in share price dips.
For investors, this pullback opens a classic buy-the-dip window in diversified defense exchange-traded funds (ETFs) that spread risk across U.S. and European names instead of relying on a handful of single stock bets. Diversified ETFs allow exposure to structurally rising defense budgets, NATO’s higher spending targets, and ongoing geopolitical flashpoints while cushioning idiosyncratic drawdowns in individual stocks.
Understanding the Recent Slide in European Defense Stocks
The recent sell-off in European defense giants, such as Rheinmetall RNMBY, Leonardo DRS, and Saab SAABY, is a textbook example of market sentiment reacting to geopolitical optics.
Defense stocks, particularly in Europe, are highly sensitive to any news suggesting a possible reduction in conflict intensity or military urgency. President Zelenskyy's pivot on NATO membership, framed within ongoing peace discussions, introduced a narrative of potential conflict resolution. This directly challenged the "war footing" demand environment that has buoyed the sector since 2022, leading to a swift sell-off in pure-play defense names like RNMBY and SAABY.
What Lies Ahead for Defense?
A prudent investor knows that despite the current wobble, the long-term investment thesis for global defense remains robust and is supported by structural, rather than transitory, factors.
In fact, even without a NATO bid, Ukraine is negotiating for "NATO-style" security guarantees, which will require European nations to serve as permanent military guarantors. This necessitates sustained, high-level spending on equipment and readiness that far outlasts the current conflict.
Meanwhile, the war in Ukraine has fundamentally and permanently reshaped European security policy, acting as a powerful catalyst for sustained budget increases. To this end, it is imperative to mention that the total military expenditure of NATO members in 2024 reached $1.45 billion, which reflects an increase of 9.6% from 2023 when adjusted for inflation and represents the biggest annual increase in defense spending since 2014. This surely underpins multi year revenue visibility for the entire defense sector.
One must also consider the fact that the Ukraine conflict is just one facet of a world where geopolitical tensions are intensifying globally with each passing day. Concurrent pressures in the Indo-Pacific and the Middle East are driving allied nations like Japan, South Korea, and Gulf states to similarly bolster their military capabilities.
This creates a diversified global demand base for leading defense contractors, such as Lockheed Martin LMT, RTX Corp. RTX, and Northrop Grumman NOC, which rely on multi-year government contracts, providing strong revenue visibility and order backlogs that insulate them from short-term market fluctuations. Thus, the defense sector's long-term growth remains anchored in a structural, global demand for national security, rather than the headlines of any single conflict.
Defense ETFs to Watch
Given the ongoing negotiations and discussions on NATO-style security guarantees for Kyiv, investors may want to keep the following defense ETFs on their watchlist and consider investing if appropriate.
State Street SPDR S&P Aerospace & Defense ETF XAR
This fund, with assets under management (AUM) worth $4.75 billion, provides exposure to 40 large, mid and small cap aerospace and defense stocks. Its top three holdings include prominent defense contractors Rocket Lab RKLB (4.03%), Karman Holdings KRMN (3.78%) and ATI Inc. ATI (3.66%).
XAR has surged 48.3% year to date. The fund charges 35 basis points (bps) as fees.
iShares U.S. Aerospace & Defense ETF ITA
This fund, with assets worth $12.96 billion, offers exposure to 41 U.S. companies that manufacture commercial and military aircraft and other defense equipment. Its top three holdings include prominent defense contractors GE Aerospace GE (21.65%), RTX (16.17%) and Boeing BA (8.04%).
ITA has surged 50.2% year to date. The fund charges 38 bps as fees.
Invesco Aerospace & Defense ETF PPA
This fund, with market value worth $6.95 billion, offers exposure to 59 companies involved in the development, manufacturing, operations and support of U.S. defense, homeland security and aerospace operations. Its top three holdings include renowned defense contractors RTX (8.71%), BA (8.16%) and GE (7.85%).
PPA has surged 38.6% year to date. The fund charges 58 bps as fees.
Select STOXX Europe Aerospace & Defense ETF EUAD
This fund, with $1.04 billion in assets, provides exposure to 13 European companies focused on the manufacture, service, supply, and distribution of civil and military aerospace equipment, systems, and technology, as well as defense and protective services equipment and solutions. Its top three holdings include renowned defense contractors Airbus EADSY (19.05%), Rolls-Royce RYCEY (18.42%) and Safran SAFRY (18.25%).
EUAD has rallied 72.7% year to date. The fund charges 50 bps as fees.
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Ukraine Ditches NATO Membership Bid: A Defense ETF Buying Opportunity?

RTX Corporation’s RTX business segment, Raytheon, recently secured a contract to provide technical and design agent engineering support for the Evolved SeaSparrow Missile (“ESSM”) and NATO SeaSparrow Missile Systems programs. The deal has been provided by the Naval Sea Systems Command, Washington, D.C.
The contract, worth nearly $104.1 million, is slated for completion by Dec. 31, 2026. A major portion of the work related to this deal will be carried out in Tucson, AZ, and Portsmouth, RI.
This contract combines purchases for the U.S. Navy along with the governments of many other countries.
An Overview of RTX’s ESSM Missiles
RTX’s ESSM missile has established itself as a benchmark international production and development program, meeting the requirements of both partner navies and third-party customers. The missile is deployed across multiple combat systems, radar, fire-control and launcher configurations at sea.
ESSM delivers dependable ship self-defense against agile, high-speed, low-altitude anti-ship cruise missiles, low-velocity aerial threats such as helicopters and fast, maneuverable surface threats. With more than 330 successful live firings at sea, ESSM is a proven and highly reliable defense solution against a broad and challenging threat spectrum. These strong capabilities are likely to keep boosting sustained demand for the missile.
Growth Potential for RTX
Rising regional conflicts worldwide are driving nations to bolster their defense capabilities. With missiles playing a vital role in modern military arsenals, countries are ramping up investments in advanced missile systems for both defensive and deterrence needs.
The Mordor Intelligence firm predicts that theglobal marketfor missiles and missile defense systems will witness a CAGR of 4.97% between 2025 and 2030. This outlook bodes well for RTX, which boasts a diverse portfolio of combat-proven missiles such as the SM-6, National Advanced Surface-to-Air Missile System, Tomahawk cruise missile, SM-2, AIM-9X Sidewinder, Naval Strike Missile and a few more.
Opportunities for Other Defense Companies
Other defense contractors poised to benefit from the growth opportunities in the missiles and missile defense systems market include the following:
Northrop Grumman Corp. NOC: The company provides high-speed, long-range strike weapons like the AARGM-ER, a supersonic, air-launched tactical missile. It also designs and manufactures warheads, fuses, advanced high-speed propulsion systems and other critical missile components.
NOC has a long-term (three to five years) earnings growth rate of 4.19%. The Zacks Consensus Estimate for 2025 sales stands at $41.88 billion, which calls for an increase of 2.1%.
Lockheed Martin Corp. LMT: The company’s Missiles and Fire Control segment focuses on the development, production and sustainment of advanced missile and rocket systems. Its prominent offerings include the PAC-3 missile family, Spike NLOS, the Precision Strike Missile and the Terminal High Altitude Area Defense and a few more.
LMT has a long-term earnings growth rate of 11.94%. The Zacks Consensus Estimate for 2025 sales stands at $74.44 billion, which calls for an increase of 4.9%.
The Boeing Company BA: The company provides air and missile defense solutions to the United States, allied nations and international partners, with a portfolio that includes advanced systems such as Aegis Ballistic Missile Defense and Ground-Based Midcourse Defense.
BA boasts a long-term earnings growth rate of 31.33%. The Zacks Consensus Estimate for 2025 sales stands at $87.26 billion, which implies a jump of 31.2%.
RTX Stock Price Movement
In the past six months, RTX shares have risen 26.8% compared with the industry’s growth of 13.1%.
Image Source: Zacks Investment Research
RTX’s Zacks Rank
RTX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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RTX Secures $104M ESSM Deal, Strengthens Global Missile Leadership

Airbus SE EADSY recently stated that it has won a deal to supply its 18 C295 transport aircraft to the Spanish Ministry of Defence.
The new aircraft will replace the CN235 and C212 fleets used for training pilots and paratroopers of the Spanish Air and Space Force, with the program aimed at standardizing fleets, and maximizing logistical and operational commonality with Spain’s existing C295 fleet.
More on EADSY’s Deal With the Spanish Ministry of Defence
To meet the Spanish Air and Space Force’s operational needs, the contract is structured into two phases. The first batch of C295 aircraft will support training and the transport of passengers, paratroopers and cargo at the Military Air Transport School at Matacan Air Base in Salamanca. Deliveries for this batch are scheduled from 2026 through 2028.
The second batch will be configured for manual and automatic paratrooper and cargo drops, with deliveries planned between 2030 and 2032.
Upon completion of the program, the Spanish Air and Space Force will operate a total of 46 C295 aircraft across transport, maritime patrol and surveillance roles.
Overview of EADSY’s C295 Aircraft
The Airbus C295 is a robust, reliable and highly versatile tactical transport aircraft capable of performing a wide range of missions, including troop and cargo transport, maritime patrol, airborne warning, surveillance and reconnaissance, signals intelligence, armed close air support, medical evacuation, VIP transport and airborne firefighting.
The aircraft can carry up to eight tons of payload or as many as 70 troops, with a maximum cruise speed of 260 knots, and offers enhanced operational flexibility through its ability to be configured for air-to-air refueling of both fixed-wing aircraft and helicopters.
Opportunities for EADSY and Other Defense Stocks
As nations worldwide enhance their defense mobility and logistics capabilities, demand for military transport aircraft is accelerating. This is likely to have led the Mordor Intelligence firm to predict that the military transport aircraft market will witness a CAGR of 1.42% during 2025-2030.
These projections highlight substantial growth prospects for top military transport aircraft makers like Airbus, whose aircraft, such as A400M, A330 MRTT and C295, are widely deployed in high-profile military operations.
Other defense companies that are likely to reap the benefits of the rising military transport aircraft market are listed below:
Embraer S.A. EMBJ: The company KC-390 Millennium is a multi-mission transport aircraft featuring a rugged design that enables operations from semi-prepared or damaged runways and in harsh environmental conditions.
EMBJ’s long-term (three to five years) earnings growth rate is 14.32%. The Zacks Consensus Estimate for 2025 sales is pegged at $7.42 billion, which suggests a rise of 16%.
The Boeing Company BA: The company provides a broad portfolio of one of the most sophisticated military transport aircraft, including the C-17 Globemaster III, C-40 and KC-46A Pegasus.
BA boasts a long-term earnings growth rate of 17.9%. The Zacks Consensus Estimate for 2025 sales is pinned at $85.66 billion, which calls for a rise of 28.8%.
Lockheed Martin Corp. LMT: The company is a leader in the military aircraft market, with a portfolio featuring some of the most advanced military transport aircraft, including the C-130J Super Hercules, C-5 Galaxy and LM-100J.
LMT boasts a long-term earnings growth rate of 11.94%. The Zacks Consensus Estimate for 2025 sales stands at $74.40 billion, which calls for an increase of 4.7%.
EADSY Stock Price Movement
In the past six months, Airbus shares have risen 10.1% compared with the industry’s growth of 5.7%.
Image Source: Zacks Investment Research
EADSY’s Zacks Rank
Airbus currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Naming Top 10 Stocks for 2026
Want to be tipped off early to our 10 top picks for the entirety of 2026? History suggests their performance could be sensational.
From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.
Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2026. Don’t miss your chance to get in on these stocks when they’re released on January 5.
Be First to New Top 10 Stocks >>
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Airbus Wins Deal to Supply 18 C295 Transport Aircraft to Spain

Geopolitical instability around the world, especially conflicts in regions like Europe and the Middle East, has increased security concerns for many countries. In response, the United States and its allies are raising their defense budgets to strengthen military readiness, modernize equipment, and invest in new weapons and defense technologies. Rising government spending benefits major defense contractors, such as Kratos Defense & Security Solutions KTOS and Lockheed Martin LMT, boosting revenues through procurement and modernization programs.
The strategic alignment with priority defense initiatives makes them increasingly attractive to investors seeking exposure to long-term defense modernization and security-driven demand.
Both companies benefit from rising Pentagon spending on advanced aerospace and defense technologies, but they approach innovation differently. Lockheed Martin is a large, established defense prime that innovates through massive, long-term programs like fighter jets, missile systems, and space defense platforms, emphasizing scale, integration and reliability. Kratos Defense, on the other hand, is a smaller, more agile company focused on emerging technologies, such as unmanned systems, drones, and hypersonic testing, aiming to deliver faster and lower-cost solutions.
Now, let’s see which model of innovation — big, system-level leadership or nimble, disruptive development — is better positioned for future defense needs.
The Case for KTOS Stock
Kratos Defense is experiencing strong growth in its unmanned systems business, supported by rising defense contracts and demand for cost-effective, high-performance drones.
The company significantly benefits from Pentagon demand. It focuses on fast-growing technologies, such as unmanned aerial systems and hypersonic systems. The U.S. Department of Defense is shifting toward modern, autonomous, and relatively low-cost technologies to upgrade its military, rather than relying only on traditional, expensive platforms. Kratos Defense benefits from this shift because it specializes in innovative and affordable systems. Key wins, including the Valkyrie drone moving into production and major hypersonic testing contracts, are drawing substantial government funding and supporting strong revenue growth.
The Case for LMT Stock
Lockheed Martin remains one of the largest U.S. defense contractors with a steady order flow from the Pentagon and other U.S. allies.
The company continues to secure big contracts from the Pentagon and other U.S. allies. Lockheed Martin was successful in clinching several notable deals in the third quarter of 2025. These include a $10.9 billion contract from the U.S. Navy to build up to a maximum of 99 CH-53K King Stallion helicopters for the U.S. Marine Corps over five years, as well as a $9.8 billion contract for the production of 1,970 Patriot Advanced Capability - 3 Missile Segment Enhancement (PAC-3 MSE) interceptors and associated hardware. It also clinched a $720.1 million contract to produce Joint Air-to-Ground Missiles (JAGM) and Hellfire missiles. Such a consistent level of contract flows bolsters its long-term revenue prospects.
Let's compare the stocks' fundamentals to determine which one is a better investment option at present.
How Do Zacks Estimates Compare for KTOS & LMT?
The Zacks Consensus Estimate for Kratos Defense’s 2025 and 2026 earnings per share (EPS) indicates an increase of 4.08% and 38.95%, respectively, year over year.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Lockheed Martin’s 2025 EPS indicates a decrease of 22.55% and the same for 2026 EPS implies an increase of 34.07% year over year.
Image Source: Zacks Investment Research
Valuation for KTOS & LMT
KTOS shares trade at a forward 12-month Price/Sales (P/S F12M) of 8.74X compared with LMT’s 1.44X.
Debt Position of KTOS & LMT
Currently, total debt to capital for Kratos Defense is nil, while that of Lockheed Martin is 78.21%.
The time-to-interest earned ratio for Kratos Defense and Lockheed Martin at the end of the third quarter of 2025 was 11.8 and 5.5, respectively. The ratio, being greater than one, reflects the company’s ability to meet future interest obligations without difficulties.
KTOS & LMT’s Price Performance
In the past six months, shares of Kratos Defense and Lockheed Martin have risen 102.3% and 5.1%, respectively.
KTOS or LMT: Which Is a Better Choice Now?
Kratos Defense is growing rapidly as rising Pentagon demand boosts its unmanned systems business, particularly cost-effective drones and hypersonic technologies. KTOS benefits from the U.S. military’s shift toward modern, autonomous, and affordable defense systems. Lockheed Martin continues to benefit from a steady flow of large defense contracts from the Pentagon and U.S. allies, reinforcing its position as a leading U.S. defense contractor. Recent wins support strong long-term revenue visibility and growth.
However, our choice at the moment is Kratos Defense, given its better earnings growth, better debt management and price performance than Lockheed Martin.
Both stocks carry a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

KTOS vs. LMT: Which Defense Stock Is Better at Innovation?

(RTTNews) - The U.S. Air Force has awarded Lockheed Martin Corporation a ceiling $10 billion modification to a previously awarded contract for the C-130J Combined Aircraft Delivery, Development, Integration, and Engineering program.
This modification increases the total cumulative face value of the contract from $15 billion to $25 billion. Work under the agreement will be performed in Marietta, Georgia, with completion expected by July 16, 2035.
The contract also includes Foreign Military Sales to several allied nations, including Egypt, Australia, New Zealand, France, the Philippines, Norway, and Germany.
At the time of the award, no funding is being obligated. The contracting activity is managed by the Air Force Life Cycle Management Center at Wright-Patterson Air Force Base, Ohio. The modification has drawn congressional interest due to its scale and international scope.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Indicator	TTM Median
P/E	26.56 24.81
Price/Sales	1.51 1.41
P/B	17.86 2.46
P/FCF	32.62 19.49

Indicator	TTM Median
ROE	65.82 15.13
ROA	7.42 6.13
ROI	16.56 9.50
Net Worth	107.04 1.43
Quick Ratio	0.83 1.15
Current Ratio	0.99 1.58

Indicator	TTM Median
Net Profit Margin	5.85 7.26
Operating Margin	8.29 10.13
Gross Margin	8.16 32.40
Return on tangible equity	0.00 26.15

Indicator	TTM Median
EPS	6.95 0.57
EPS Forecast	6.33 0.55
Revenue	18.16B 194.00M
Gross Profit	734.00M —
EBITDA	1.15B —

Lockheed Martin Corporation

TTM metrics for the latest quarter under IFRS and their historical dynamics

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