NEW YORK, Jan 9, 2026, 11:28 EST — Regular session
- Lockheed Martin shares climbed in late morning trade as U.S. defense stocks extended a rebound
- Investors weighed a bigger U.S. defense budget pitch against new limits tied to payouts and delivery schedules
- Fresh contract notices and a unit-level award added to the company’s near-term news flow ahead of earnings later this month
Lockheed Martin (LMT.N) shares were up 4.5% at $541.92 in late morning trading on Friday.
The bounce comes as investors digest a White House push to tighten the screws on the defense industry’s payouts while promising more money for weapons. Trump signed an executive order, “Prioritizing the Warfighter in Defense Contracting,” that links executive pay, dividends and share buybacks to delivery schedules, and contractors have been calling lawyers about how it might be enforced, three sources told Reuters. White House spokeswoman Anna Kelly said the “days of defense contractors prioritizing investor returns over military readiness are over,” while Lockheed said it “shares” the administration’s focus on “speed, accountability, and results.” 1
The same week brought a headline boost: Trump said the administration’s fiscal 2027 defense budget request would reach $1.5 trillion, up from $901 billion in 2026, Reuters reported. Lockheed paid about $2.3 billion in dividends through Sept. 20 and repurchased about $2.3 billion of stock through Oct. 21, with $9.1 billion still authorized for buybacks — repurchases that can lift per-share earnings by shrinking the share count. 2
Other big contractors moved higher too: Northrop Grumman (NOC.N) rose about 4.6% and L3Harris (LHX.N) gained about 3.1%, while General Dynamics (GD.N) added nearly 1% and RTX (RTX.N) was little changed.
Separate from the policy noise, a U.S. Department of War contract notice dated Jan. 8 showed Lockheed Martin Rotary and Mission Systems won a $22.6 million contract modification tied to AN/SLQ-32(V)6 work, including Foreign Military Sales to Canada. Work is expected to run through January 2027, and through January 2029 if all options are exercised, the notice showed. 3
Lockheed also flagged a sustainment win at a smaller unit. Derco, a Lockheed Martin company, said it was awarded a C-130 aviation consumables performance-based logistics contract by the Defense Logistics Agency, a structure that generally pays contractors for meeting availability and readiness targets rather than just shipping parts. “We are thrilled to be partnered with the DLA,” Derco president and general manager Kathy Medalle said. 4
But the upside case is not clean. If the administration pushes the executive order hard, companies that have leaned on buybacks and dividends to support shareholder returns could face a real constraint, at least until delivery metrics improve — and legal fights could stretch the timeline and keep uncertainty hanging over the group.
Lockheed’s next hard catalyst is its quarterly report. The company is due to publish fourth-quarter and full-year 2025 results before the market opens on Jan. 29, followed by an 8:30 a.m. ET conference call with CEO Jim Taiclet, CFO Evan Scott and investor relations chief Maria Ricciardone, the company said. 5
Until then, traders are watching for the first practical signals on enforcement — including how the Department of War applies the order’s review and remediation process — and whether the budget promise turns into contract volume that offsets tighter rules on payouts. The next real read on that trade-off, for Lockheed holders, lands on Jan. 29.
