New York, Jan 24, 2026, 12:40 EST — The market has closed.
- The iShares U.S. Aerospace & Defense ETF dropped 0.3% on Friday as the sector braces for a packed week of earnings.
- After raising its 2025–26 outlook following a $220 million acquisition, Karman retreated from earlier gains.
- AST SpaceMobile slipped back following Thursday’s rally, as a late-February launch date looms; L3Harris bumped up its dividend.
Space and defense shares enter next week mixed following a flurry of company-specific news late Friday. The iShares U.S. Aerospace & Defense ETF (ITA) finished the session around 0.3% lower, closing at $235.07. 1
This is crucial now, with several major earnings reports and policy updates lined up over the next four sessions. Defense contractors will report soon, as investors assess if rising interest rates and volatile markets are steering capital toward cash-flow stocks or away from those priced for perfection.
Karman Holdings (KRMN) slipped roughly 3% on Friday, closing at $108.22 after touching record highs the day before. The space and defense supplier raised its fiscal 2025 guidance and offered an early peek at 2026, linked to its upcoming acquisition of Seemann Composites and Materials Sciences. 2
Karman’s investor update projects 2025 revenue between $470 million and $471 million, with adjusted EBITDA—a cash-profit indicator—around $144.5 million to $144.9 million. For 2026, the company anticipates revenue hitting $700 million to $715 million and adjusted EBITDA ranging from $205 million to $215 million. The $220 million deal is expected to close in the first quarter of 2026, pending regulatory approvals. 3
William Blair analyst Louie DiPalma described the industry demand environment as “red hot,” noting the deal broadens Karman’s reach into funded maritime defense programs. 4
AST SpaceMobile (ASTS) dipped about 2.4% on Friday, closing at $113.57, after a 12.4% surge the previous day. The company announced that BlueBird 7 is set for a late-February launch aboard Blue Origin’s New Glenn-3 mission from Cape Canaveral. AST SpaceMobile also outlined plans for multiple launches through 2026 as it pushes toward commercial service. “This launch advances our mission to bring space-based cellular broadband connectivity to everyday smartphones,” said AST president Scott Wisniewski. 5
L3Harris Technologies (LHX) slipped roughly 0.3% to close at $354.73 on Friday. The company’s board greenlit a quarterly dividend increase to $1.25 per share, set for payment on March 20 to shareholders registered by March 6. 6
Big defense names drifted into the weekend: Lockheed Martin slipped about 0.5%, Northrop Grumman ticked up roughly 0.4%, and RTX dipped near 0.2% by Friday’s close. Attention now turns to earnings from RTX and Northrop Grumman on Jan. 27, followed by Lockheed and L3Harris on Jan. 29. Investors will be watching closely for updates on order intake, missile and space demand, plus any margin hits tied to supply chain or labor issues. 7
The macro scene is far from calm. The Federal Reserve’s upcoming policy meeting is scheduled for Jan. 27–28, with the decision and press conference set for Jan. 28. This event could shake up yields and, in turn, shift how investors value long-duration growth plays in the space sector. 8
There are clear risks that could derail this trade. Karman’s forecast depends on wrapping up and integrating an acquisition as planned, while AST’s launch schedule remains vulnerable to rocket readiness and weather delays — any hiccup could rattle stocks already priced for a tight timeline.
Tough catalysts are coming up fast: RTX and Northrop report before Tuesday’s open (Jan. 27), the Fed announces its decision Wednesday (Jan. 28), followed by Lockheed and L3Harris earnings on Thursday (Jan. 29). Then, AST’s BlueBird 7 launch window sets the stage for another key operational test in late February.
