Boeing (NYSE: BA) secured a seven-year, $14.7 billion contract from Lockheed Martin to triple production of PAC-3 Missile Segment Enhancement interceptor seekers.
The guidance components enable Patriot missiles to detect, track, and destroy incoming ballistic missiles, cruise missiles, and aircraft, according to the company.
Under the agreement, Boeing will support Lockheed Martin’s broader goal of expanding annual PAC-3 interceptor production capacity from roughly 600 to 2,000 units by the end of 2030.
Boeing has already begun expanding its manufacturing facilities in Alabama to accommodate the higher production volumes required under the deal.
The contract adds to a significant recent stretch for Boeing, which secured a separate defense order worth roughly $23 billion the prior week.
RTX (NYSE: RTX), through its Raytheon unit, secured a contract worth up to $6.3 billion to manufacture and maintain Standard Missile-3 Block IB interceptors for the U.S. Navy.
The five-year agreement, which includes options for two additional years, covers missiles used to intercept short- and intermediate-range ballistic threats, with production based at Raytheon facilities in Arizona and Alabama.
The deal follows agreements from the previous week with the Department of War worth up to $20.7 billion to accelerate production of AMRAAM air-to-air missiles.
Ondas (NASDAQ: ONDS) also extended its recent momentum, announcing a $56 million order for electronic safe-and-arm devices used in a European loitering-munition program, its first such contract following acquisitions of GATE Technologies and Bron Technologies.
Citizens initiated coverage of Ondas with an “Outperform” rating and a $14 price target, a level more than double the stock’s current trading price.
Ondas separately reported more than $165 million in orders between the second half of August and October 1, bringing total orders since June 30 to over $270 million.
These defense contract wins come against a backdrop of reported tensions in the U.S.-Iran conflict, with an Axios report indicating the Pentagon has ordered preparations for possible large-scale strikes targeting Iran’s energy infrastructure and nuclear facilities.
President Donald Trump stated on Thursday that the U.S. would not strike Iran before November’s midterm elections, pointing to what he described as productive talks between the two countries.
Despite the volume of contract wins, shares of all three companies have declined over the past two weeks, with ONDS falling 10.81%, BA dropping 2.53%, and RTX sliding 1.78%.
Year-to-date losses are steeper for ONDS and BA, down approximately 38% and 18% respectively, while RTX has declined around 1.5% over the same period.
