Implications of Canada's Military Plans for Lockheed and Defense Stocks.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 18 2026
0mins
Source: Barron's
U.S.-Canada Relations: Recent tensions have emerged between the U.S. and Canada, affecting various sectors beyond just sports.
Canada's Defense Strategy: Canada has introduced a new defense strategy that may influence investment opportunities in the defense industry.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy BA?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on BA
Wall Street analysts forecast BA stock price to rise
16 Analyst Rating
14 Buy
1 Hold
1 Sell
Strong Buy
Current: 217.760
Low
150.00
Averages
269.14
High
298.00
Current: 217.760
Low
150.00
Averages
269.14
High
298.00
About BA
The Boeing Company is an aerospace company. Its segments include Commercial Airplanes (BCA), Defense, Space & Security (BDS), and Global Services (BGS). Its BCA segment develops, produces and markets commercial jet aircraft principally for the commercial airline industry worldwide. Its family of commercial jet aircraft in production includes the 737 narrow-body model and the 767, 777 and 787 wide-body models. Its BDS segment is engaged in the research, development, production and modification of manned and unmanned military aircraft and weapons systems for strike, surveillance and mobility. Its BGS segment provides services to its commercial and defense customers worldwide. It sustains aerospace platforms and systems with a range of products and services, including supply chain and logistics management, engineering, maintenance and modifications, upgrades and conversions, spare parts, pilot and maintenance training systems and services, technical and maintenance documents, and others.
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.
Rheinmetall Projects 45% Sales Growth in 2023 Amid Defense Spending Surge
- Sales Growth Outlook: Rheinmetall anticipates a sales increase of 40% to 45% in 2023, reaching between €14 billion and €14.5 billion, reflecting a surge in global demand for military equipment, particularly in the context of the Ukraine war, showcasing the company's strong position in the defense market.
- Record Order Backlog: The company's order backlog has reached a record high of €63.8 billion, a 36% increase year-over-year, indicating that Rheinmetall will have ample production capacity to meet the rising defense demands in the coming years, further solidifying its market leadership.
- Profitability Improvement: The operating margin is expected to rise to around 19% in 2026 from 18.5% in 2025, which not only reflects the company's success in cost control and efficiency improvements but also enhances shareholder return expectations, boosting market confidence.
- Positive Market Reaction: Despite 2025 sales of €9.94 billion falling short of expectations, Rheinmetall's stock has surged approximately 540% over the past three years, demonstrating investor confidence in its long-term growth potential, especially against the backdrop of increased European defense spending.
See More
Boeing 737 Max Deliveries Delayed Due to Wiring Defect
- Delivery Delays: Boeing (BA) announced that a wiring defect on some 737 Max aircraft will delay a portion of deliveries, although the company expects to meet its full-year delivery goal, with the issue stemming from minor scratches caused by a machining error affecting quality standards.
- Production Continues: Despite the defect, production of the 737 Max continues at the current pace, with affected aircraft undergoing rework expected to take only a few days, thereby minimizing the impact on delivery schedules.
- Orders and Deliveries: Boeing delivered 51 commercial aircraft in February, marking its strongest monthly result since 2017, and secured 21 gross aircraft orders, although six were cancellations, resulting in six net orders, indicating resilience in market demand.
- Potential Major Sale: Boeing is nearing a significant potential sale of about 500 737 Max jets, which could be announced during Donald Trump's planned visit to Beijing, although the agreement has not yet been finalized, potentially providing crucial support for the company's financial recovery.
See More
Trump Discusses Iran War and Domestic Security Concerns
- War Progress: Trump stated that Iran has lost its Navy and Air Force and lacks anti-aircraft capabilities in the ongoing conflict with the U.S. and Israel, indicating significant military progress for the U.S. that could further diminish Iran's combat effectiveness.
- Strait Security: Trump expressed optimism regarding the security of the Strait of Hormuz, asserting that the U.S. does not believe Iran has mined the strait, despite intelligence reports suggesting that Iran has recently laid a few mines, which could impact global oil transportation safety.
- Insurance Arrangement: Insurance giant Chubb announced it will serve as the lead underwriter for a U.S.-government-led insurance program to cover ships passing through the Strait, a move aimed at enhancing shipping safety and mitigating the war's impact on international trade.
- Trade Threats: Trump criticized Spain for not supporting the U.S. war effort and threatened to cut off trade with Spain, reflecting his strategy of using strong measures in international relations, which could affect U.S.-European trade dynamics.
See More
European Markets Decline Amid Geopolitical Tensions
- Market Sentiment Decline: European bourses fell on Wednesday, reflecting investor concerns over geopolitical conflicts, particularly escalating tensions in the Middle East, which heightened market risk aversion.
- Cautious Investor Attitude: Due to uncertainties surrounding future economic growth, investors exhibited caution in trading, potentially impacting market liquidity and trading volumes in the short term, thereby exerting pressure on stock prices.
- Sector Impact Notable: The energy and financial sectors showed weakness due to geopolitical tensions, particularly affecting companies linked to the Middle East, highlighting the market's sensitivity to related risks.
- Uncertain Future Outlook: Analysts indicate that if conflicts persist, they could negatively impact global economic recovery, prompting investors to closely monitor developments to adjust their investment strategies.
See More
Potential Benefits for These Defense Stocks from Iran's Mine Threat in the Strait of Hormuz
- Strait of Hormuz Closure: The Strait of Hormuz is effectively closed due to heightened risk aversion among shipping companies.
- Iranian Threats: Ongoing threats from Iran contribute to the closure and increased tensions in the region.
- Dangerous Sea Mines: The presence of sea mines in the area poses additional dangers for maritime navigation.
- Impact on Shipping: The combination of these factors has led to significant disruptions in shipping routes through this critical waterway.
See More
FTA Aviation's Engine Business Outlook Remains Strong
- Strong Market Demand: The surging demand for power from data centers is bolstering FTA Aviation's new business, FTA Power, which is converting aircraft engines into power turbines, expected to significantly enhance revenue and market share.
- Outstanding Stock Performance: According to S&P Global Market Intelligence, FTA Aviation's shares rose by 12.3% in February, with a remarkable 178% increase over the past year, reflecting strong market confidence in its growth prospects.
- Maintenance Spending Growth: Industry maintenance spending is projected to grow from $22 billion to $25 billion by 2026, indicating airlines' preference for extending the life of existing fleets, thus providing ongoing service opportunities for FTA.
- Strategic Partnership Agreement: FTA Aviation signed a multi-year agreement with CFM International to provide component and service support for CFM56 engines, which not only extends engine life but also ensures a stable supply of parts, enhancing competitive positioning in the market.
See More
Rheinmetall Projects 45% Sales Growth in 2023 Amid Defense Spending Surge
- Sales Growth Outlook: Rheinmetall anticipates a sales increase of 40% to 45% in 2023, reaching between €14 billion and €14.5 billion, reflecting a surge in global demand for military equipment, particularly in the context of the Ukraine war, showcasing the company's strong position in the defense market.
- Record Order Backlog: The company's order backlog has reached a record high of €63.8 billion, a 36% increase year-over-year, indicating that Rheinmetall will have ample production capacity to meet the rising defense demands in the coming years, further solidifying its market leadership.
- Profitability Improvement: The operating margin is expected to rise to around 19% in 2026 from 18.5% in 2025, which not only reflects the company's success in cost control and efficiency improvements but also enhances shareholder return expectations, boosting market confidence.
- Positive Market Reaction: Despite 2025 sales of €9.94 billion falling short of expectations, Rheinmetall's stock has surged approximately 540% over the past three years, demonstrating investor confidence in its long-term growth potential, especially against the backdrop of increased European defense spending.
See More
Boeing 737 Max Deliveries Delayed Due to Wiring Defect
- Delivery Delays: Boeing (BA) announced that a wiring defect on some 737 Max aircraft will delay a portion of deliveries, although the company expects to meet its full-year delivery goal, with the issue stemming from minor scratches caused by a machining error affecting quality standards.
- Production Continues: Despite the defect, production of the 737 Max continues at the current pace, with affected aircraft undergoing rework expected to take only a few days, thereby minimizing the impact on delivery schedules.
- Orders and Deliveries: Boeing delivered 51 commercial aircraft in February, marking its strongest monthly result since 2017, and secured 21 gross aircraft orders, although six were cancellations, resulting in six net orders, indicating resilience in market demand.
- Potential Major Sale: Boeing is nearing a significant potential sale of about 500 737 Max jets, which could be announced during Donald Trump's planned visit to Beijing, although the agreement has not yet been finalized, potentially providing crucial support for the company's financial recovery.
See More
Trump Discusses Iran War and Domestic Security Concerns
- War Progress: Trump stated that Iran has lost its Navy and Air Force and lacks anti-aircraft capabilities in the ongoing conflict with the U.S. and Israel, indicating significant military progress for the U.S. that could further diminish Iran's combat effectiveness.
- Strait Security: Trump expressed optimism regarding the security of the Strait of Hormuz, asserting that the U.S. does not believe Iran has mined the strait, despite intelligence reports suggesting that Iran has recently laid a few mines, which could impact global oil transportation safety.
- Insurance Arrangement: Insurance giant Chubb announced it will serve as the lead underwriter for a U.S.-government-led insurance program to cover ships passing through the Strait, a move aimed at enhancing shipping safety and mitigating the war's impact on international trade.
- Trade Threats: Trump criticized Spain for not supporting the U.S. war effort and threatened to cut off trade with Spain, reflecting his strategy of using strong measures in international relations, which could affect U.S.-European trade dynamics.
See More
European Markets Decline Amid Geopolitical Tensions
- Market Sentiment Decline: European bourses fell on Wednesday, reflecting investor concerns over geopolitical conflicts, particularly escalating tensions in the Middle East, which heightened market risk aversion.
- Cautious Investor Attitude: Due to uncertainties surrounding future economic growth, investors exhibited caution in trading, potentially impacting market liquidity and trading volumes in the short term, thereby exerting pressure on stock prices.
- Sector Impact Notable: The energy and financial sectors showed weakness due to geopolitical tensions, particularly affecting companies linked to the Middle East, highlighting the market's sensitivity to related risks.
- Uncertain Future Outlook: Analysts indicate that if conflicts persist, they could negatively impact global economic recovery, prompting investors to closely monitor developments to adjust their investment strategies.
See More
Potential Benefits for These Defense Stocks from Iran's Mine Threat in the Strait of Hormuz
- Strait of Hormuz Closure: The Strait of Hormuz is effectively closed due to heightened risk aversion among shipping companies.
- Iranian Threats: Ongoing threats from Iran contribute to the closure and increased tensions in the region.
- Dangerous Sea Mines: The presence of sea mines in the area poses additional dangers for maritime navigation.
- Impact on Shipping: The combination of these factors has led to significant disruptions in shipping routes through this critical waterway.
See More
FTA Aviation's Engine Business Outlook Remains Strong
- Strong Market Demand: The surging demand for power from data centers is bolstering FTA Aviation's new business, FTA Power, which is converting aircraft engines into power turbines, expected to significantly enhance revenue and market share.
- Outstanding Stock Performance: According to S&P Global Market Intelligence, FTA Aviation's shares rose by 12.3% in February, with a remarkable 178% increase over the past year, reflecting strong market confidence in its growth prospects.
- Maintenance Spending Growth: Industry maintenance spending is projected to grow from $22 billion to $25 billion by 2026, indicating airlines' preference for extending the life of existing fleets, thus providing ongoing service opportunities for FTA.
- Strategic Partnership Agreement: FTA Aviation signed a multi-year agreement with CFM International to provide component and service support for CFM56 engines, which not only extends engine life but also ensures a stable supply of parts, enhancing competitive positioning in the market.
See More
