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Pentagon Boosts Lockheed Martin Deal to $25 Billion, Hands Boeing $2 Billion Engine Contract

MarketDash Editorial Team
1 day ago
The Pentagon significantly expanded its C-130J aircraft contract with Lockheed Martin from $15 billion to $25 billion while awarding Boeing a separate $2 billion deal for B-52 engine replacements, even as President Trump criticizes defense contractors over executive pay and stock buybacks.

The Pentagon just wrote some very large checks this week, significantly expanding its relationship with America's biggest defense contractors. Lockheed Martin Corp (LMT) saw its C-130J aircraft contract balloon from $15 billion to $25 billion, while Boeing Co (BA) walked away with a fresh $2 billion deal for B-52 engine replacements.

Following the Money

The expanded Lockheed Martin contract covers the development, engineering, and delivery of C-130J aircraft to a multinational roster of buyers. We're talking Egypt, Australia, New Zealand, France, the Philippines, Norway, and Germany. That's quite the customer list, and it explains why the deal grew by $10 billion from its original value.

Meanwhile, Boeing's $2 billion score focuses on the B-52 commercial engine replacement program, part of the ongoing effort to keep America's venerable bomber fleet flying for decades to come.

The Awkward Timing

Here's where things get interesting. These contract expansions arrive during a period of contradictions in the defense industry. Back in October, Lockheed Martin CEO Jim Taiclet was talking enthusiastically about contributing to President Donald Trump's "Golden Dome For America" initiative. Boeing has been on something of a winning streak in defense lately, racking up major contracts and successfully testing next-generation digital communications systems.

But on Tuesday, the same day these deals were announced, Trump rolled out a major Pentagon budget shift and launched into criticism mode. His target? Top defense contractors charging hefty executive salaries and buying back stock while key programs languish in delays. Trump argued these practices undermine national security readiness despite the nearly $1 trillion annual defense budget.

So the Pentagon is simultaneously handing out billions in expanded contracts while the President criticizes how defense companies spend their money. The increased contract values signal a continued commitment to strengthening U.S. and allied defense capabilities, even as questions swirl about whether taxpayers are getting their money's worth from the defense industrial base.

Back to Stock Market News

Pentagon Boosts Lockheed Martin Deal to $25 Billion, Hands Boeing $2 Billion Engine Contract

MarketDash Editorial Team
1 day ago
The Pentagon significantly expanded its C-130J aircraft contract with Lockheed Martin from $15 billion to $25 billion while awarding Boeing a separate $2 billion deal for B-52 engine replacements, even as President Trump criticizes defense contractors over executive pay and stock buybacks.

The Pentagon just wrote some very large checks this week, significantly expanding its relationship with America's biggest defense contractors. Lockheed Martin Corp (LMT) saw its C-130J aircraft contract balloon from $15 billion to $25 billion, while Boeing Co (BA) walked away with a fresh $2 billion deal for B-52 engine replacements.

Following the Money

The expanded Lockheed Martin contract covers the development, engineering, and delivery of C-130J aircraft to a multinational roster of buyers. We're talking Egypt, Australia, New Zealand, France, the Philippines, Norway, and Germany. That's quite the customer list, and it explains why the deal grew by $10 billion from its original value.

Meanwhile, Boeing's $2 billion score focuses on the B-52 commercial engine replacement program, part of the ongoing effort to keep America's venerable bomber fleet flying for decades to come.

The Awkward Timing

Here's where things get interesting. These contract expansions arrive during a period of contradictions in the defense industry. Back in October, Lockheed Martin CEO Jim Taiclet was talking enthusiastically about contributing to President Donald Trump's "Golden Dome For America" initiative. Boeing has been on something of a winning streak in defense lately, racking up major contracts and successfully testing next-generation digital communications systems.

But on Tuesday, the same day these deals were announced, Trump rolled out a major Pentagon budget shift and launched into criticism mode. His target? Top defense contractors charging hefty executive salaries and buying back stock while key programs languish in delays. Trump argued these practices undermine national security readiness despite the nearly $1 trillion annual defense budget.

So the Pentagon is simultaneously handing out billions in expanded contracts while the President criticizes how defense companies spend their money. The increased contract values signal a continued commitment to strengthening U.S. and allied defense capabilities, even as questions swirl about whether taxpayers are getting their money's worth from the defense industrial base.