Canada will make broader use of a state-owned bank to provide loans and venture capital to companies in the defense industry, part of a suite of measures to squeeze economic benefits from an increase in military spending https://t.co/kdeginEOT6 ...

This year Europe will spend some $180bn on military kit, more than double outlays in 2021 and greater even than the amount spent by America. That figure is set to rise further still https://t.co/YXUtlH1PLt ...

Traders in the Japanese government bond market are on high alert Tuesday for any sign that President Trump will increase pressure on his ally to make a bigger boost to military spending https://t.co/RPtZrvR7ip ...

A 142-year-old UK engineering firm run by the sixth generation of its founding family was thrust further into the stock market spotlight Monday, as investors pounce on its ties to rising military spending https://t.co/9LGRsOHZU0 ...

Industry Overview - The Aerospace & Defense industry is experiencing a significant uptrend, with the S&P Aerospace & Defense Select Industry Index increasing by 43.23% year to date, outperforming the S&P 500's gain of 13.90% in the same period [1]. Demand Drivers - Ongoing conflicts in the Middle East and the prolonged Russia-Ukraine war have led to increased demand for missiles and fighter jets, boosting sales for defense contractors [2]. Supply Chain Challenges - Persistent supply chain disruptions, exacerbated by the Trump administration's trade policies, have negatively impacted production efficiency and delayed backlog execution across the industry [2]. Company Earnings Highlights Northrop Grumman - Northrop Grumman reported third-quarter 2025 earnings of $7.67 per share, exceeding the Zacks Consensus Estimate of $6.49 by 18.2%. Total sales were $10.42 billion, missing the estimate of $10.72 billion by 2.8%, but up 4.3% from $10 billion in the same quarter last year [4][6]. - The company is expected to participate in bids for the U.S. administration's $175 billion Golden Dome missile defense system, which could support long-term revenue growth [5]. - Northrop Grumman's total backlog increased to $91.45 billion at the end of Q3 2025, up from $89.74 billion at the end of Q2 2025 [6]. RTX Corporation - RTX Corporation reported third-quarter 2025 adjusted EPS of $1.70, beating the Zacks Consensus Estimate of $1.42 by 19.7%, and improving 17.2% from $1.45 in the same quarter last year [7]. - Third-quarter sales reached $22.48 billion, surpassing the estimate of $21.48 billion by 4.6% and increasing 11.9% from $20.09 billion in Q3 2024 [8]. - RTX's backlog for Q1 2025 was reported at $217 billion [8]. Lockheed Martin - Lockheed Martin reported third-quarter 2025 adjusted earnings of $6.95 per share, exceeding the Zacks Consensus Estimate of $6.33 by 9.8%, and up 2.2% from $6.80 in the previous year [10]. - Net sales were $18.61 billion, beating the estimate of $18.56 billion by 0.3% and increasing 8.8% from $17.10 billion in the year-ago quarter [11]. - Lockheed Martin's backlog as of September 28, 2025, was $179.07 billion, up from $176.04 billion at the end of 2024 [12]. Investment Opportunities - The aerospace and defense industry maintains an optimistic outlook, with rising military spending expected to continue due to the current geopolitical climate [13]. - Investors may consider various Aerospace – Defense ETFs, including iShares U.S. Aerospace & Defense ETF (ITA), Invesco Aerospace & Defense ETF (PPA), SPDR S&P Aerospace & Defense ETF (XAR), Global X Defense Tech ETF (SHLD), and U.S. Global Technology and Aerospace & Defense ETF (WAR) [14]. - XAR is noted as the cheapest option for annual fees at 0.35%, making it suitable for long-term investing [14]. - SHLD is highlighted as the most liquid option with a one-month average trading volume of about 1.38 million shares, ideal for active trading strategies [15].

Poland has almost doubled the size of its military and boosted military spending to nearly 5% as Russia has grown more assertive https://t.co/6SrgTptDAi ...

Germany is set to approve €7.5 billion ($8.7 billion) in military equipment this week to modernize forces amid Russia threat https://t.co/rUTkiNJAUh ...

Military Expansion - Poland has almost doubled the size of its military [1] - Poland has boosted military spending to nearly 5% [1] Geopolitical Context - Russia has grown more assertive, prompting Poland's military expansion [1]

Market Trends - Copper is at the center of two emerging megatrends: artificial intelligence and increased military expenditure [1]

Geopolitical Strategy - The U S military requires serious financial investment to counter the influence of Xi, Putin, and Kim [1] - The parade in Beijing presents an opportunity for the U S to emphasize the importance of military spending [1]