The Pentagon increased the value of a contract with Lockheed Martin Corp (NYSE:LMT) on Tuesday and awarded a new contract to Boeing Co (NYSE:BA).
Pentagon Boosts C-130J, B-52 Deals
The deal, covering the development, engineering, and delivery of C‑130J aircraft, has risen from an initial $15 billion to $25 billion. The contract includes sales to several countries, including Egypt, Australia, New Zealand, France, the Philippines, Norway, and Germany.
Additionally, Boeing Co. secured a $2 billion contract for the B-52 commercial engine replacement program.
Defense Contracts Amid Trump Criticism
The news comes amid a series of significant developments in the aerospace and defense industry. In October, Lockheed Martin’s CEO, Jim Taiclet, expressed optimism about the company’s position to contribute to President Donald Trump‘s ambitious “Golden Dome For America” initiative.
Meanwhile, Boeing has been making significant strides in the defense sector, including a major contract-winning spree and a successful trial of a next-generation digital communications system.
Amidst these developments, the increase in the Lockheed Martin contract value and the new Boeing order indicate a continued focus on strengthening the defense capabilities of the U.S. and its allies. However, the industry has also faced criticism. on Tuesday, Trump announced a major Pentagon budget shift, criticizing top defense contractors for high executive pay and stock buybacks while key programs suffer delays, arguing this undermines national security readiness despite the nearly $1 trillion annual defense budget.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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