Global Military Spending Surges to $2.7 Trillion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy LMT?
Source: Fool
- German Military Spending Surge: The German government approved an €88.5 billion military budget for 2025, representing a 28% increase from 2023 and an 89% rise since 2015, positioning Germany as the fourth-largest military spender globally and demonstrating its strategic commitment to European military rearmament.
- Rheinmetall's Performance Boost: Rheinmetall reported €2.78 billion in revenue for Q3 2025, a 13% increase year-over-year, while its operating margin improved to 12.9%, reflecting strong performance and growing market demand amid Germany's military restructuring.
- Future Growth Expectations: Rheinmetall anticipates a 30% compound annual growth rate in sales from 2023 to 2025, with backlog expected to grow at a 45% CAGR, indicating robust competitiveness and expansion potential in the global defense market.
- Opportunities in the U.S. Market: Rheinmetall expects to generate $2 billion in annual revenue as a major supplier to the U.S. market, particularly after securing a contract for its Lynx infantry fighting vehicle, further solidifying its position in the international defense sector.
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Analyst Views on LMT
Wall Street analysts forecast LMT stock price to fall
12 Analyst Rating
4 Buy
7 Hold
1 Sell
Hold
Current: 637.430
Low
430.00
Averages
535.50
High
605.00
Current: 637.430
Low
430.00
Averages
535.50
High
605.00
About LMT
Lockheed Martin Corporation is a global aerospace and defense company. The Company is engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. Its segments include Aeronautics, Missiles and Fire Control (MFC), Rotary and Mission Systems (RMS) and Space. Aeronautics segment is engaged in the research, design, development, manufacture, integration, sustainment, support and upgrade of advanced military aircraft. MFC segment provides air and missile defense systems, manned and unmanned ground vehicles, energy management solutions, and others. RMS segment designs, manufactures, services and supports various military and commercial helicopters, surface ships, sea and land-based missile defense systems, and others. Its Space segment is engaged in the research and design, development, engineering and production of satellites, space transportation systems, and strategic, advanced strike, and defensive systems.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Strong Financial Performance: Lockheed Martin reported a 9% year-over-year increase in fourth-quarter revenue to $20.3 billion, surpassing market expectations, although net earnings fell short due to significant losses tied to classified programs, indicating robust demand in the defense sector.
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- Boeing's Contract: Boeing won a $2.3 billion contract in Singapore for four P-8A Poseidon patrol aircraft and their weapon systems, although RTX will not gain additional revenue, Boeing's defense division is expected to improve its financial performance.
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- Total Arms Sales: The U.S. Defense Security Cooperation Agency (DSCA) submitted 11 arms deals to Congress in January, totaling $22.5 billion, indicating a robust growth trend in defense investments that could further boost stock prices of involved companies.
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- Expansion Plans: ULA is building additional facilities and launch pads at Kennedy Space Center to increase flight cadence, facing pressure from competitors like SpaceX and Blue Origin, while needing to secure its market share.
See More
