Defense giants are keeping close watch on the rapidly progressing conflict between Israel and Hamas, with expectations that it and other wars around the world will boost business. In third-quarter earnings calls this week, investors asked about “opportunities” that could result from increased spending on national security as the Pentagon tries to arm Israel, Ukraine, and Taiwan all at the same time. RTX CEO Greg Hayes said, “The elevated threat environment is continuing to drive increased defense spending globally.”
While execs touted a positive outlook for defense spending, it remains to be seen if the industrial base can keep up with the high demand for weapons while replenishing stockpiles. For example, the Pentagon has reportedly decided to give Israel thousands of 155mm artillery shells once slated for Ukraine. Company leaders sounded confident that Congress would pass the White House’s $105 billion supplemental budget request, which asks for more funding for Ukraine and Israel, along with purchases from U.S. companies.
Highlights from third-quarter earnings calls:
Submarine supply chain still weak
Boeing losses top $2.4B on Air Force One program
Lockheed’s “campaign-like” hunt for a rocket motor builder of its own
New RTX-Rafael facility
US orders 38 Northrop satellites
Air Force’s spectrum wing has begun standing up electronic warfare units
Paul Tennant, retired British Army brigadier, named corporate vice president of engagement and international government relations at HII. Anduril hired Keith Flynn to oversee manufacturing operations for the company. Maxar has named Dan Smoot to be its new CEO.
