RTX - Top US Defence Contractors Lockheed Martin And Raytheon Shares Dip Amid Budget Woes While European Firms Surge | Benzinga
The shares of major U.S. defense contractors have been on a downward spiral due to a global military boom that has seen European counterparts’ stock prices soar. This decline in the U.S. defense industry is largely attributed to the legislative deadlock in Washington, which has created uncertainty around government spending.
What Happened: The shares of top Pentagon contractors including Lockheed Martin Corp (NYSE:LMT) and Raytheon Technologies Corp (NYSE:RTX) have plummeted over the past year following Russia’s invasion of Ukraine, reported Financial Times. Meanwhile, European defense companies like Italy’s Leonardo SpA and Germany’s Rheinmetall AG have surged their shares.
Despite the US defense companies’ record order books, uncertainty over future government commitments has dampened their valuations. This uncertainty stems from the Pentagon and the rest of the U.S. government operating at last year’s spending levels due to Congress’s failure to pass the 2024 budget.
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