- Lockheed Martin confirmed GM delivered an initial batch of missile-housing components for PAC-3 MSE interceptors on August 28, less than a month after a formal contract was signed in July.
- Lockheed did not disclose the contract value, order size, scope of future work, or production location, citing security concerns.
- GM CEO Mary Barra told investors on the Q2 earnings call that she anticipates $700M in defense revenue this year while building a backlog that will produce double-digit profit margins in coming years.
- Lockheed Martin is under pressure from the Trump administration to boost munitions production, and GM is seeking new revenue streams as its core auto market weakens into Q4 2026.
- GM stock rose 3-4% on the news; the shares carry a consensus Strong Buy rating from 16 analysts with an average price target of $107.31, implying 25% upside.
Quotes
“she anticipates $700 million in defense revenue this year while building “a backlog of future business” that will produce double-digit profit margins in coming years”