Tuesday, November 28, 2023
HomeUS GovernmentUkraine war orders starting to boost revenues for big US defense contractors

Ukraine war orders starting to boost revenues for big US defense contractors

Servicemen patrol in front of the Patriot air defence system during Polish military training on the missile systems at the airport in Warsaw, Poland February 7, 2023. REUTERS/Kacper Pempel//File Photo Acquire Licensing Rights
WASHINGTON, Oct 27 (Reuters) – The Russian invasion of Ukraine in 2022 is starting to boost defense contractors’ revenues, as customers such as the U.S. government restock supplies shipped to Ukraine and countries around Europe arm themselves with an eye on Moscow’s aggressions.
U.S. defense contractors such as Lockheed Martin (LMT.N), General Dynamics (GD.N) and others expect that existing orders for hundreds of thousands of artillery rounds, hundreds of Patriot missile interceptors and a surge in orders for armored vehicles expected in the months ahead will underpin their results in coming quarters.
New contracts to supply Ukraine directly – or backfill U.S. weapons sent to Ukraine – were signed late last year, and now revenue is flowing to the big defense contractors. Lockheed, General Dynamics and RTX (RTX.N) all reported better than expected results over the past several days, and executives expect both the conflict in Ukraine and Israel’s war with Palestinian militant group Hamas to drive up near-term demand.



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