Core Insights - The Trump administration's proposed budget for fiscal year 2026 includes a significant 24% cut to NASA's funding, reducing it from $24.8 billion to $18.8 billion, which may impact major space companies' revenue streams [3][4] - The budget proposal suggests the termination of the Space Launch System (SLS) program, which has been criticized for its high costs and delays, with a projected cost of $4 billion per launch and being 140% over budget [6][8] - The proposed budget allocates $7 billion for lunar exploration under Project Artemis and $1 billion for Mars missions, but cuts funding for the Mars Sample Return mission [5][6] Impact on Companies - The termination of the SLS program threatens an estimated $82 billion in contracts for major contractors like Boeing, Lockheed Martin, and Northrop Grumman, which were expected to benefit from Project Artemis [8] - Conversely, the budget cuts could create opportunities for more cost-effective space contractors like SpaceX and Blue Origin, which are positioned to take over roles currently held by traditional aerospace companies [9][11] - SpaceX's Starship and Blue Origin's New Glenn rocket are projected to offer lunar missions at significantly lower costs, with Starship estimated at less than $3 billion per trip and New Glenn at $3.4 billion [9][10] Long-term Industry Outlook - The proposed changes indicate a shift towards more budget-conscious space operations, potentially sidelining established companies in favor of newer, more efficient competitors [11][12] - While this transition may not be favorable for current investors in traditional aerospace stocks, it could lead to a more sustainable and cost-effective future for the space industry [12]

Cancellation of the Orion program could cost Lockheed Martin stock billions.Lockheed Martin (LMT -1.64%) is riding the market roller coaster on Friday.In early trading, shares of the defense giant jumped nearly 3% on a Wells Fargo report calling the new fiscal year 2026 defense budget a "big win for defense stocks."No sooner had that report come out, though, than Bloomberg broke bad news for Lockheed: The Trump administration plans to end Space Launch System launches and terminate production of Orion space ...