Core Insights - Global defense spending is increasing due to geopolitical tensions and advancements in warfare technology, leading to heightened investor interest in military aerospace stocks, particularly Boeing and Lockheed Martin for 2025 [1][2] Company Overview - Boeing is integrated into the U.S. defense infrastructure through its Defense, Space & Security segment, providing fighter jets and surveillance platforms, while also having a strong commercial aviation presence [2][3] - Lockheed Martin operates as a pure-play defense contractor with stable revenue streams from flagship programs like the F-35 Lightning II and Hellfire missiles [2][3] Financial Stability & Growth Drivers - As of Q1 2025, Boeing reported $23.67 billion in cash and equivalents against $7.93 billion in current debt, indicating strong solvency and reduced operating cash outflow from $3.36 billion to $1.62 billion year-over-year [5] - Lockheed Martin had $1.80 billion in cash versus $1.64 billion in current debt, with an operating cash flow of $1.41 billion in Q1 2025, supporting significant shareholder returns through $796 million in dividends and $750 million in share buybacks [6] - The proposed 13% increase in the U.S. defense budget for fiscal 2026 is a major growth catalyst for both companies, with Boeing benefiting from funding for its F-47 program and Lockheed focusing on U.S. space dominance and missile defense initiatives [7][8] Market Performance - Boeing's stock has outperformed Lockheed's over the past three months, with a 10.2% increase compared to Lockheed's 6.9%, and a 15% increase for Boeing over the past year versus Lockheed's 0.9% [16] - Lockheed's valuation is more attractive, trading at a forward sales multiple of 1.46X compared to Boeing's 1.69X [17] Conclusion - Boeing shows signs of recovery and potential growth through its commercial services and defense exposure, but faces operational and reputational risks [22][23] - Lockheed Martin stands out for its solid balance sheet, consistent cash flow, and reliable shareholder returns, making it a more resilient investment option in a volatile geopolitical environment [22][23]