The U.S. is doubling down on defense partnerships in the Middle East. The State Department just authorized two significant military sales: a roughly $445 million package of F-16 sustainment equipment for Bahrain and a separate $1 billion helicopter support deal for Saudi Arabia.

Keeping Bahrain's F-16s Flying

The Bahrain package isn't about shiny new jets—it's about keeping existing ones operational. The proposed sale covers aircraft components, missile containers, radar receiver parts, guidance and control section spares, weapons system support, ground handling equipment, plus various instruments and laboratory equipment. Think of it as a comprehensive maintenance toolkit that will be added to a previously executed contract.

The rationale is straightforward: Bahrain is a major non-NATO ally in a strategically important region, and keeping its air force mission-ready aligns with U.S. interests. General Electric Aerospace (GE) and Lockheed Martin Aeronautics (LMT) will handle the contract as primary contractors. The Defense Security Cooperation Agency has already notified Congress about the potential sale to Bahrain's government.

Saudi Helicopter Support Package

Meanwhile, Saudi Arabia is getting a much larger commitment. The Pentagon announced Monday that the State Department approved a potential $1 billion sale focused on military helicopter support and training for the Royal Saudi Land Forces Aviation Corps.

This deal includes spare parts, repair components, and aviation training services to keep Saudi Arabia's helicopter fleet operational. It's another sustainment-focused package rather than new aircraft purchases.

Broader Defense Export Push

These sales fit into a larger pattern of deepening U.S.-Gulf defense ties. Last July, Bahrain's Crown Prince Salman bin Hamad Al Khalifa announced a substantial $17 billion investment in the United States spanning multiple sectors. Bahrain also celebrated the Comprehensive Security Integration and Prosperity Agreement (C-SIPA), which the U.K. later joined after receiving an invitation from both Bahrain and the U.S.

Saudi Arabia has been equally busy on the defense procurement front. In November, the Trump administration finalized deals for approximately 300 tanks and approved a major defense package that includes future F-35 deliveries, all supporting U.S. defense export objectives.

For Lockheed Martin, one of the key beneficiaries of these Middle East deals, business is strong operationally even if the stock hasn't reflected it. The defense giant recently reported third-quarter 2025 results that exceeded Wall Street expectations and raised its full-year guidance. Perhaps most impressively, the company's backlog reached a record $179 billion, demonstrating sustained demand across its defense and aerospace programs.

Price Action: Lockheed Martin stock has fallen 8.93% year-to-date. On Monday, shares dropped 3.35% to close at $439.19.