The U.S. Air Force Just Ordered $7.8 Billion in New Missiles, and These 2 Defense Contractors Will Profit

Core Insights - The U.S. government awarded Lockheed Martin and RTX Corporation contracts totaling nearly $7.8 billion for missile orders [2][4][5] - Lockheed Martin received a $4.3 billion contract for Joint Air-To-Surface Standoff Missiles and Long-Range, Anti-Ship Missiles, while RTX was awarded $3.5 billion for Advanced Medium Range Air-to-Air Missiles [4][5] Financial Impact - Lockheed Martin's contract will contribute approximately $71.7 million annually, representing an increase of less than 1% to its $71 billion revenue stream [6][7] - RTX's contract will add less than $600 million annually, equating to a maximum increase of 0.7% to its $84 billion revenue stream [7] Profitability Comparison - Lockheed Martin's operating profit margin in its Missiles and Fire Control division is 4.2%, making it the least profitable division [10] - RTX's Raytheon division has a higher operating margin of 9.7%, making it the second most profitable division for RTX [11] Market Valuation - Despite RTX winning the smaller contract, it is expected to generate more profit due to its superior profit margins [12] - RTX stock is valued at 2.5 times annual sales, while Lockheed stock is valued at 1.4 times sales, reflecting the difference in profitability [12]