New York, February 15, 2026, 12:58 EST — The market has closed.
Lockheed Martin and Huntington Ingalls, the shipbuilder, powered a late Friday rally in U.S. space and defense shares. The gains came as investors eyed new policy cues and geopolitical developments ahead of the long weekend.
With U.S. markets closed Monday for Presidents Day, traders will need to wait until Tuesday to react to anything that surfaces over the weekend.
That leaves the sector kicking off the week on shaky footing, swayed by contract rumors, shifting budget politics, and the odd surprise headline that can hit without warning.
Huntington Ingalls finished the day at $418.78, climbing 3%. Shares of Lockheed advanced 2.4% to $652.58. General Dynamics ticked up 2%, closing at $347.64, and L3Harris ended 1.7% higher at $345.50. Northrop Grumman notched a 1.1% gain. RTX, meanwhile, dipped 0.5%.
Boeing finished 1.5% higher. AeroVironment jumped 3.8%, with Kratos Defense up 2.3%. Palantir advanced 1.8%.
AST SpaceMobile picked up 0.4% to finish at $82.51 on Friday. Redwire dropped 2.3%, closing at $20.09, and Iridium eased down 0.8% to $19.52.
AST has dominated chatter in the sector following its announcement of fresh financing moves. The company’s plan: buy back roughly $300 million of its outstanding convertible notes set to mature in 2032, and issue around $1 billion in new convertible notes due 2036. These instruments can convert into equity, potentially diluting current shareholders and setting off hedging activity. According to AST, the refinancing should slash interest costs by over $50 million but will tack on about 1.15 million new shares. The company also flagged “substantial” trading swings tied to actions by note holders. Nasdaq
Investors in the defense sector sifted through signals out of Munich this weekend, as European officials pushed the case for ramping up rearmament and dialing back dependence on Washington. The backdrop: President Donald Trump’s Greenland annexation push unsettled U.S. allies. European Commission President Ursula von der Leyen didn’t mince words—“some lines have been crossed that cannot be uncrossed anymore.” She pointed to nearly an 80% jump in European defence outlays since before Russia’s invasion of Ukraine. NATO member states last year committed to boosting their core defense spending from 2% up to 3.5% of GDP, plus another 1.5% earmarked for broader security investment. Reuters
Von der Leyen, in separate remarks, called on the European Union to “bring to life” its mutual defence clause, insisting that “mutual defence is not an optional task for the European Union.” Reuters
Contractors across the U.S. are scrambling to keep pace with new pressure from the White House, which wants faster weapons deliveries and more robust output. “The carrot-and-stick approach seems to be working,” wrote Scott Mikus of Melius Research. Major primes now plan to ramp up capital spending in 2026, responding directly to the administration’s push. Reuters
Still, the policy isn’t all upside for investors. “The micromanaging of capital allocation is three-quarters of a step back,” said David Sowerby, managing director at Ancora Advisors, which holds General Dynamics stock. He’s talking about new restrictions on shareholder payouts and executive pay. Trump’s order blocks contractors from paying dividends or buying back shares until projects are finished on time and within budget. CEOs could also see pay capped. Investors are uneasy—these rules threaten the “income” profile the sector is known for. Reuters
Competition in the space arena isn’t standing still. Vietnam’s government has cleared SpaceX to roll out its Starlink satellite internet service locally, according to state media. The company’s local entity was granted licenses covering fixed and mobile satellite internet operations, plus approval for radio frequencies and equipment.
This week, eyes shift to Tuesday, February 17, with U.S. markets coming back online after the Presidents Day holiday. Investors are also poised for any signals out of Munich or Washington that could shake up forecasts for defense spending and oversight of contractors. In the space sector, AST is lining up its BlueBird 7 launch for late February on Blue Origin’s New Glenn rocket—a near-term milestone that has investors paying attention.
