From hypersonic missiles to unmanned aircraft, defence is entering a new era
The global defence industry is entering a new phase, driven by rising geopolitical tensions, increased military spending, and growing demand for advanced technology. From hypersonic weapons to unmanned aircraft and missile defence systems, companies that specialize in military innovation are gaining attention on Wall Street. Five defence giants—Lockheed Martin, RTX (formerly Raytheon Technologies), General Dynamics, Northrop Grumman, and Boeing—are emerging as key players in this evolving landscape.
This article explores their latest stock movements, major updates, and why they are shaping the future of defence.
1. Lockheed Martin (LMT)
Stock Price: Around $468.60[Text Wrapping Break]Change: -2.24% intraday
Lockheed Martin remains one of the most well-known defence companies in the world. Its expertise ranges from stealth fighter jets to advanced missile systems. Recently, Lockheed’s shares took a dip after news broke that the U.S. Department of Defense plans to cut the number of F-35 jets it will purchase this year. This decision created concern because the F-35 program contributes nearly 30% of Lockheed’s total revenue.
Despite the setback, Lockheed is expanding in other areas. It recently secured a $1.7 billion contract to provide advanced targeting and vision systems for the U.S. Army. Additionally, it delivered a key missile defence system to the U.S. military and won a $1 billion deal for developing hypersonic weapons for the Navy.
Lockheed has also offered to help the United Kingdom build an improved air defence system. This bid, if successful, could open up another long-term revenue stream and strengthen its international presence.
Why It Matters:[Text Wrapping Break]Lockheed Martin is adjusting to changes in U.S. military priorities while expanding into hypersonic technology and international missile defence programs. Its long history, advanced technologies, and global reach continue to make it a leading player.
2. RTX Corporation (RTX)
Stock Price: Around $145.87[Text Wrapping Break]Change: -1.7% intraday
RTX, formerly known as Raytheon Technologies, is another defence giant that specializes in missiles, radars, and space systems. The company has reported an impressive $217 billion in order backlog—out of which $92 billion is specifically for defence products.
Recently, RTX won a $1.1 billion contract to supply the U.S. military with AIM-9X missiles and another $646 million to provide radar systems for Navy ships. It also secured funds to maintain the U.S. Navy’s SM-6 missile program.
Institutional investors are showing strong interest in RTX due to its growing defence orders and consistent performance in a challenging market environment. The U.S. government’s defence budget and international military demand continue to support its growth.
Why It Matters:[Text Wrapping Break]RTX is a leader in missile and radar systems. With a growing backlog and strong U.S. defence ties, it remains a safe and promising investment in the defence sector.
3. General Dynamics (GD)
Stock Price: Around $278.53[Text Wrapping Break]Change: Small decline intraday
While General Dynamics hasn’t made many headlines recently, it remains a solid and consistent player in the defence space. It is best known for its work on submarines, combat vehicles, and IT services for the military.
The company produces Virginia-class submarines and the Abrams tank, both critical to U.S. military operations. It also supports secure communication and cyber operations, which are becoming increasingly important.
Though its stock has shown less excitement compared to others, its stability and involvement in long-term defence programs give it strong staying power.
Why It Matters:[Text Wrapping Break]General Dynamics may not be the flashiest stock, but its deep ties with the U.S. military and involvement in critical technologies make it a stable part of any defence-focused investment strategy.
4. Northrop Grumman (NOC)
Stock Price: Around $494.65[Text Wrapping Break]Change: Slight drop intraday
Northrop Grumman is a key defence contractor that focuses on aerospace systems and missile defence technology. Though it hasn’t been in the news much lately, the company remains vital in government programs related to missile defence and space innovation.
It is actively working on next-generation defence technologies, including projects funded by the U.S. Department of Defense’s advanced research divisions. This includes hypersonic interceptors and satellite-based defence systems.
The company’s low profile may present an opportunity for investors looking for solid growth without the high exposure of headline-driven stocks.
Why It Matters:[Text Wrapping Break]Northrop Grumman is deeply involved in next-gen missile defence and aerospace technology. It’s a quieter but crucial force in national security.
5. Boeing (BA)
Stock Price: Around $197.68[Text Wrapping Break]Change: -1.3% intraday
Boeing is widely known for its commercial airplanes, but its defence division plays a critical role in military innovation. In recent months, Boeing has faced challenges with financial losses of over $11 billion due to issues in its commercial aircraft business.
To address these problems, Boeing has sold off some of its non-core assets, including a major aviation services business, for $10.5 billion. This has helped the company improve its balance sheet and focus more on defence and space.
On the military side, Boeing recently demonstrated its MQ-28 Ghost Bat—an autonomous drone that works alongside manned aircraft. This is part of its strategy to lead in unmanned and AI-assisted warfare.
Why It Matters:[Text Wrapping Break]Though Boeing faces pressure from its commercial segment, its defence operations are showing real innovation. If its turnaround plan succeeds, its defence side could drive long-term growth.
Key Trends Driving These Stocks
Global Tensions: Conflicts in Ukraine and the Middle East have raised defence budgets across the world. Countries are rushing to upgrade their military capabilities.
U.S. Military Budget: The U.S. defence budget for 2025 is expected to remain between $813 billion and $892 billion, providing strong support to companies like Lockheed and RTX.
European Expansion: European nations are increasingly relying on American defence contractors for advanced systems, especially in missile defence and cybersecurity.
New Technology: Autonomous systems, hypersonic missiles, and space-based defences are changing how wars are fought. Companies that invest in these areas early are likely to dominate the future of defence.
Table Summary
| Company | Key Strengths | Challenges |
| Lockheed Martin | Strong contracts, global projects | F-35 dependency |
| RTX Corporation | Growing backlog, missile leadership | Possible regulatory issues |
| General Dynamics | Submarines, cyber, steady income | Less media coverage |
| Northrop Grumman | Missile defence, space tech | Lower investor attention |
| Boeing | Autonomous systems, asset sales | Commercial losses |
Final Thoughts
With growing threats and rising budgets, demand for advanced military solutions is stronger than ever. While Lockheed and RTX lead in terms of visibility and innovation, General Dynamics and Northrop Grumman offer stability and potential hidden value. Boeing, though under pressure, could surprise the market with its defence innovations.
Each of these five companies plays a unique role in shaping the new face of defence—and their future performance will closely mirror the world’s shifting security needs.
