Major defense contractors locked in multibillion-dollar missile agreements this week, reflecting intensified U.S. efforts to rebuild weapons stockpiles strained by ongoing conflict in the Middle East.
Boeing (BA) received a seven-year contract worth approximately $14.7 billion from Lockheed Martin (LMT) to increase production of seekers for PAC-3 Missile Segment Enhancement interceptors.
These guidance components allow Patriot missiles to detect, track, and destroy incoming threats including ballistic missiles, cruise missiles, and aircraft, according to the company.
Under the agreement, Boeing will support Lockheed Martin’s broader plans to raise annual PAC-3 interceptor production capacity from roughly 600 to 2,000 units by the end of 2030.
Boeing has already begun expanding its manufacturing facilities in Alabama to accommodate the higher production volumes required under the deal.
The contract adds to a massive stretch of wins for the aerospace giant, which secured a defense order worth roughly $23 billion just the previous week.
RTX’s (RTX) Raytheon unit also extended its deal momentum, securing a contract worth up to $6.3 billion to manufacture and maintain Standard Missile-3 Block IB interceptors for the U.S. Navy.
The five-year agreement, with options for two additional years, covers missiles used to intercept short- and intermediate-range ballistic threats, with production at Raytheon facilities in Arizona and Alabama.
The deal follows agreements with the Department of War worth up to $20.7 billion reached last week to accelerate production of AMRAAM air-to-air missiles.
Ondas (ONDS) also reported strong momentum this week, announcing a $56 million order for electronic safe-and-arm devices used in a European loitering-munition program.
The order marks Ondas’ first contract for these devices following its acquisitions of GATE Technologies and Bron Technologies, signaling a meaningful expansion of its precision-strike business.
Citizens initiated coverage of Ondas with an Outperform rating and a $14 price target, which represents more than double the stock’s current trading price.
Separately, Ondas reported more than $165 million in orders between the second half of August and October 1, bringing total orders since June 30 to over $270 million.
These contract wins are unfolding against a backdrop of rising geopolitical tension, with the Pentagon reportedly ordering preparations for possible large-scale strikes on Iran targeting energy infrastructure and nuclear facilities, according to an Axios report.
President Donald Trump said Thursday that the U.S. would not attack Iran before November’s midterm elections, citing productive talks between the two countries.
Despite the wave of contract announcements, all three stocks have declined over the past two weeks, with ONDS falling 10.81%, BA dropping 2.53%, and RTX sliding 1.78%.
Year-to-date losses are more pronounced for ONDS and BA, down nearly 38% and 18% respectively, while RTX has declined approximately 1.5% over the same period.
