Archer Aviation (US:ACHR) ZACKS·2025-12-23 20:11Industry Overview - Ongoing global conflicts and rivalries are driving governments to enhance military capabilities, leading to systematic upgrades in weapons, vehicles, aircraft, missile defense systems, and cyber capabilities [1][4] - Defense priorities are shifting towards artificial intelligence-enabled platforms, cyber and space capabilities, and advanced surveillance systems, which are expected to improve speed, precision, and resilience [2] Defense Spending - U.S. defense spending is projected to reach $1.01 trillion in fiscal 2026, reflecting a 13.4% increase proposed by President Trump, providing the Pentagon with greater flexibility for new orders and program expansions [3] - Sustained government spending and modernization efforts are supporting long-term growth in the defense sector, with multi-year budgets ensuring funding stability [4] Market Growth - The global aerospace and defense market is estimated to reach $1,470.43 billion by 2032, with a compound annual growth rate of 8.2% from 2025 to 2032 [5] Company Highlights - Archer Aviation: Focuses on developing hybrid-electric vertical takeoff and landing aircraft for military applications, with a projected 12.6% year-over-year earnings increase for 2026 [7][8] - GE Aerospace: Secured a $5 billion contract from the U.S. Air Force, with expected revenue and earnings growth of 11.7% and 13% respectively for 2026 [9][10] - Howmet Aerospace: Announced an acquisition of Consolidated Aerospace Manufacturing to enhance its offerings in aerospace and defense, with projected revenue and earnings growth of 11.4% and 19.7% respectively for 2026 [11][12][13]