Lockheed Martin Corporation

Boeing shares climbed 3% in early Wednesday trading after the U.S. Navy selected the aerospace company to develop its next-generation F/A-XX carrier fighter, an award valued at more than $20 billion. The program covers full-scale development and includes test aircraft for evaluating the jet's systems, weapons and flight performance. Boeing beat Northrop Grumman for the contract, while Lockheed Martin was eliminated from the competition in 2025. The F/A-XX is planned as a sixth-generation fighter for carrier operations, expected to enter service during the 2030s and replace the Navy's F/A-18E/F Super Hornet, with development aimed at operating alongside unmanned systems and providing longer-range capabilities. The award gives Boeing both of the U.S. military's major next-generation crewed fighter programs, following its 2025 win of the Air Force's F-47 program, and could create additional production work as the Navy moves toward fielding the aircraft.

Aerospace and defense shares fell Tuesday morning after a Reuters report that Iran has offered to reopen the Strait of Hormuz within seven days if the U.S. takes initial steps toward easing military pressure. Lockheed Martin dropped 3% to $521.05 and RTX fell 3% to $189.40, while Boeing slipped 1% to $198.61, its smaller decline reflecting a revenue mix weighted toward commercial aircraft rather than munitions. The iShares U.S. Aerospace & Defense ETF fell 1% to $213.40 while the SPDR S&P 500 ETF Trust held roughly flat at $773.53, confirming the selling was concentrated in defense primes rather than the broader market. WTI crude oil traded at $91.64 per barrel, down 0.79% over the past 24 hours and lower for a fourth session, as the diplomatic signal compressed the geopolitical risk premium underpinning expectations for sustained munitions demand. The move extends an existing de-rating: RTX has shed 10% and Lockheed Martin 7% over the past month, making the Hormuz headline an accelerant rather than the ignition for the decline.

A potential ban on Bombardier aircraft sales in the United States could hit the Canadian jet maker's largest market and disrupt an aerospace supply chain spanning thousands of U.S. companies, BofA analysts said. The issue follows President Donald Trump's statement that Bombardier should no longer sell aircraft in the U.S., where its jets are certified by the Federal Aviation Administration and most aerospace goods produced in Canada and Mexico are exempt from U.S. tariffs. The U.S. accounts for about 45% of the global business-jet market and is Bombardier's largest individual market, with the company delivering roughly 80 to 100 aircraft there annually out of total deliveries of around 155, while its 2026 guidance calls for more than 157 aircraft. A halt to U.S. sales could also affect American suppliers, as Bombardier's supply chain includes roughly 2,800 U.S. companies across 47 states and generates about $2.5 billion in annual U.S. purchases. GE Aerospace supplies engines for Bombardier's Global 7500 and 8000 aircraft, Honeywell powers the Challenger 300, 350 and 3500 family, and RTX's Collins Aerospace supplies avionics across the Global and Challenger ranges. Trade tensions could also affect U.S. defense contractors if Canada shifts future procurement toward European or Asian suppliers, with programs potentially exposed including Canada's planned purchase of 88 Lockheed Martin F-35A fighters, which carries an acquisition budget of about C$27.7 billion, of which only 16 are firmly ordered and Ottawa has considered Saab's Gripen as a possible partial alternative. Canada also has commitments involving Boeing's P-8A Poseidon and General Atomics' MQ-9B SkyGuardian drones, and while a complete cancellation of Canada's outstanding U.S. defense contracts is considered unrealistic, future purchases could gradually shift toward other suppliers if trade relations deteriorate.