Lockheed Martin Corporation LMT

President Trump just clearly stated he’s not reducing Defense spending. Elon targeting fraud waste and abuse. China increased defense spending 7.2%…….

Spot on Michael - China budgeted a 7.2% increase in defense spending, the same growth rate as in the prior year. Beijing increased spending by 7.1% in 2022 and 6.8% in 2021, according to official data.

China has significantly increased its spending on space programs, aiming to become a dominant spacefaring nation. Focus is on ISR and PNT.

Bad juju if the USA doesn’t control this environment. Trump admin needs to accelerate our space programs.

China announced a 7.2% increase in defense spending during the speech this evening

I have posted numerous times - War is not necessarily a business development opportunity for LMT. US needs to focus Defense dollars on R&D and major platforms in all war fighting domains to keep pace with our near peer adversaries.

UK Prime Minister just stated increase in Defense spending- drive toward 3% and he’s hosting meeting this Sunday with 18 European leaders- Defense spending increase will be a key element of the meeting.

Specifically- page 2 of SecDef Hegseth memo clearly identifies what will NOT be part of 8% target PLANNING, “refocusing and reinvesting, not a cut”…… “Nuclear modernization, Iron Dome, one way attack drones UAVs, cyber security, corps readiness, training, Defense Industrial Base” they and other key programs are OFF the table in this initiative… Full Stop”…

LMT back to 500

“Trump administration is targeting a 5% to 8% cut of the Defense Department’s civilian employees, part of a larger effort to slash the federal workforce.” If you live in the DC AOR everyone knows many of the USG folks have been working a couple hours a day - at best - from home. Watch SecDef Hegseth recently released video on DOGE actions at the DOD. DOGE is after fraud waste and abuse IN the USG… not the Defense Industrial Base. He clearly states this fact. The DIB has DCAA auditors working IN their facilities.
During COVID guess who went to the office, lab, hanger, closed area, SCIF every single day- DIB contractors. Most of the govies were home. So what COVID proved - what we all knew - you can do away with 60% of the government workforce with no impact- in fact just the opposite..

Investors finally figured out: 1) DOGE is identifying USG DOD bureaucracy- value capture to optimize operations and processes ( removing USG waste, fraud, abuse), not defining operational functions and capabilities, 2) Trump will offset reduction of US taxpayer funded defense programs and ensure international/NATO increases their spend from ~2% - he’s requesting/demanding 5%; 3) PLTR is a great company with awesome capabilities, but a mkt cap larger than LMT, NOC and LHX COMBINED is nuts, 4) LMT leads in most of the war-fighting domains - space, air, land, sea (surface & undersea), cyber, 5) LMT is a large scale manufacturer of critical products in all domains identified above….
THE USG DOES NOT BUILD ANYTHING!

How come $PLTR got hurt by the budget cut but not $LMT?

DOGE will find at least 8% waste in the DOD. Note - that’s not necessarily a cut to the Defense Industry (LMT, NG, GD, etc.) - the found waste will hopefully lead to efficiencies that will allow industry to accelerate growth. Trump pressure on NATO to increase their Defense spending to 5%. That’s Trumps target number ,of course if NATO countries get to 3-4% from 2% that’s a windfall for the Defense Industry and gift to US taxpayers.
LMT backlog is in the stratosphere. Up from here.