Key TakeawaysUS and Israel launch coordinated "Operation Roaring Lion" and "Operation Shield of Judah," targeting Iranian nuclear facilities, military headquarters, and government installations across multiple cities.Major General Amir Hatami, Commander-in-Chief of the Iranian Army, has reportedly been killed in the strikes, marking a significant decapitation of Iran's military leadership.Iran has retaliated with a first wave of approximately 30 ballistic missiles launched toward Israel, triggering nationwi ...

President Donald Trump addressed questions about potential military action against Iran on Friday, stating you “don’t want to, but sometimes you have to.”The President stated he hadn’t made a decision on using military force and that there “may or may not be regime change in Iran.”Trump made the remarks to reporters before leaving the White House for a trip to Texas.Traders on Polymarket are pricing in a 78% chance of a U.S. strike by the end of year, up about eight percentage points from yesterday. The odd ...

BWX Technologies, Inc. (NYSE:BWXT) is one of the stocks that was on Jim Cramer’s radar recently. Cramer discussed the company’s performance and earnings during the episode, as he remarked: This has been a very good market for the defense contractors and the nuclear energy plays. So what about a company that’s in both of these businesses? I’m talking about BWX Technologies, which makes nuclear reactors for submarines and aircraft carriers. Here’s a stock that has more than tripled over the past three years ...

Key TakeawaysGeneva has become the epicenter of global diplomacy as separate high-stakes negotiations involving the United States, Ukraine, and Iran commenced simultaneously on February 26, 2026.Oman’s Foreign Ministry reported "creative and positive ideas" are being exchanged in indirect U.S.-Iran nuclear talks, though a massive U.S. military buildup in the Middle East continues to keep energy markets on edge.Ukraine and the U.S. have initiated bilateral talks focused on a multi-billion dollar "Prosperity ...

Core Viewpoint - Hensoldt reported full-year revenue slightly below market expectations, but a significant increase in high-value orders and a strong backlog indicate positive momentum from Europe's defense rearmament efforts [1] Financial Performance - Hensoldt's revenue for 2025 was 2.46 billion euros ($2.90 billion), falling short of the 2.50 billion euro consensus [1] - Adjusted EBITDA rose to 452 million euros, reflecting a margin of 18.4%, aligning with expectations and surpassing the company's forecast [1] Order Intake and Backlog - Order intake surged by 62% to 4.71 billion euros, increasing the order backlog to 8.83 billion euros [1] - The company anticipates revenue of approximately 2.75 billion euros for 2026, with an adjusted margin target of 18.5%-19.0% [1] Market Dynamics - The geopolitical situation is driving Europe to enhance its defense capabilities, with Germany playing a crucial role in Hensoldt's order intake momentum [1] - Hensoldt's sensors are utilized in various platforms, including the Eurofighter Typhoon and the Puma infantry fighting vehicle [1] Challenges - Supply chain constraints in electronic components and hiring bottlenecks are impacting the pace at which Hensoldt can convert its backlog into revenue [1] - The company maintains expectations for a book-to-bill ratio in the range of 1.5-2.0, indicating sustained demand for its products [1]

Key TakeawaysPentagon issues Friday ultimatum to Anthropic to remove AI guardrails or face a "supply chain risk" blacklisting; Lockheed Martin (LMT) and Boeing (BA) exposure is under immediate review.Secretary of State Marco Rubio warns Iran is pushing for nuclear capability and intercontinental ballistic missiles (ICBMs), calling Tehran's refusal to discuss its missile program a "big, big problem."U.S. officials are investigating a "highly unusual" shootout near Cuba involving a Florida-registered boat tha ...

Group 1 - The Pentagon has requested Boeing and Lockheed Martin to assess their reliance on Anthropic's AI model, Claude, indicating a potential designation of Anthropic as a "supply chain risk" [1][1][1]

Industry Overview - Escalating global tensions, particularly in Europe and the Middle East, have heightened national security risks, prompting governments to increase defense budgets [1] - The U.S. and its allies are enhancing military expenditures to improve preparedness and develop advanced defense capabilities [1] U.S. Defense Spending Proposal - In January 2026, President Trump proposed increasing U.S. defense spending to approximately $1.5 trillion by 2027, up from about $901 billion for fiscal 2026 [2] - This increase supports major contractors like Lockheed Martin and Kratos Defense, driving higher revenues through expanded procurement orders [2] Lockheed Martin (LMT) Insights - Lockheed Martin is a leading U.S. defense contractor with a focus on large-scale programs, including the F-35, which accounted for nearly 27% of total net sales in 2025 [5] - The company has delivered 1,293 F-35 airplanes, with a backlog of 368 jets as of December 31, 2025, indicating strong future sales potential [5] - The proposed budget increase suggests a favorable long-term funding outlook for defense programs, which could enhance order visibility and revenue growth for Lockheed Martin [6] Kratos Defense (KTOS) Insights - Kratos Defense specializes in unmanned aerial systems and has secured multiple contracts with the U.S. military, leading to revenue growth in its Unmanned Systems segment, which generated $68.5 million in Q4 2025 [7][8] - The company benefits from a shift towards modern, autonomous technologies, with key wins in drone production and hypersonic testing contracts driving substantial government funding [8] Earnings Growth Estimates - The Zacks Consensus Estimate indicates Lockheed Martin's EPS will increase by 28.94% in 2026 and 8.53% in 2027 [9] - In contrast, Kratos Defense's EPS is expected to grow by 32.73% in 2026 and 47.52% in 2027, reflecting stronger growth potential [12] Valuation and Debt Comparison - Lockheed Martin's shares trade at a forward Price/Sales ratio of 1.94X, while Kratos Defense trades at 9.35X [13] - Kratos Defense has no debt, while Lockheed Martin has a total debt to capital ratio of 76.35%, indicating better debt management for Kratos [14] Stock Performance - Over the past year, Lockheed Martin's shares have risen by 50.5%, while Kratos Defense has seen a significant increase of 263.3% [15] Investment Recommendation - Kratos Defense is favored due to its superior earnings growth, better debt management, and strong stock performance compared to Lockheed Martin [18]

Lockheed Martin Corporation (NYSE:LMT) is one of the Best Aerospace and Defense Stocks to Invest In Right Now. On February 18, Lockheed Martin Corporation (NYSE:LMT) announced securing a major foreign military sale contract through Wright-Patterson Air Force Base. The contract entails delivering C-130J training devices and upgrades to the Royal Australian Air Force (RAAF). The deliveries for this contract are expected to start in 2029. ​The equipment to be delivered under the contract includes two weapon ...

Key Takeaways KTOS reported Q4 adjusted EPS of 18 cents, up 38.5% year over year, topping estimates.Kratos Defense posted 21.9% revenue growth, with book-to-bill at 1.3-1 and backlog of $1.212B.KTOS ended 2025 with $560.6M cash, no long-term debt, and guided 2026 revenues of $1.595-$1.675B.Kratos Defense & Security Solutions, Inc. (KTOS) reported fourth-quarter 2025 adjusted earnings of 18 cents per share, which beat the Zacks Consensus Estimate of 14 cents by 28.6%. The bottom line also increased 38.5% fro ...