Latest news with #militaryspending
Bloomberg
5 hours ago
- Business
- Bloomberg
Switzerland Courts Rheinmetall, Defense Firms for $250 Million Chip Plant
Switzerland's top research institutions are in early talks with arms makers including Rheinmetall AG to fund a new $250 million semiconductor plant, according to people familiar with the plans, as the historically neutral country wades deeper into defense amid surging European military spending. A Swiss consortium recently proposed building a facility to develop and fabricate chips in the outskirts of Zurich, according to a document viewed by Bloomberg. To finance the effort, the group plans to turn to government agencies and 'large industrial companies,' the document says.
Daily Mail
5 hours ago
- Business
- Daily Mail
BAE boss cheers NATO spending surge as its order book swells to £75B
BAE Systems has hiked its profit and sales guidance, as the British defence giant cashes in on an increase in military spending amid growing geopolitical conflict. The London-listed group said revenue in the first six months of the year soared 11 per cent to £14.6billion and earnings were up 13 per cent to £1.5billionn. Defence firms including BAE Systems have been boosted by a race to rearm across Europe since Russia's invasion of Ukraine three years ago. And it is set to benefit further after Nato members pledged to increase military spending to 5 per cent by 2035. '[The] Nato summit of a few weeks ago and the consensus [to increase defence spending] really underpins our confidence in the long term,' BAE chief executive Charles Woodburn said. But shares in the FTSE 100 giant dipped more than 2 per cent on Wednesday morning as investors were disappointed by the scale of the upgrade. Woodburn said there might have been 'a bit of profit taking going on' on Wednesday but added that he is 'confident in the long-term outlook'. BAE Systems shares are up more than 50 per cent so far this year. BAE received £13.2billion worth of new orders in the first six months of the year, taking its order book to £75billion. And it has accelerated investment in UK facilities due to the 'deteriorating threat environment here in Europe,' Woodburn said. In the first six months of the year, it expanded its Glasgow shipbuilding site and opened a new £25million artillery factory in Sheffield. The company is on track to recruit 2,400 graduates and apprentices in the UK this year. 'We don't ourselves struggle to attract talent', Woodburn said, but warned that 'some of our supply chain may experience more challenges'. 'As the UK, across Europe and the US look to rearm and increase the pace of that, inevitably there are going to be supply chain challenges,' he said. 'We've had quite some shocks to supply chain that we have been able to navigate through,' Woodburn said, citing the Covid-19 pandemic and the start of Russia's war in Ukraine. 'It does require very active management [but] it's not something I think we can't manage,' he said.
Daily Mail
7 hours ago
- Business
- Daily Mail
BAE boss cheers Nato spending surge as its order book swells to £75bn
BAE Systems has hiked its profit and sales guidance, as the British defence giant cashes in on an increase in military spending amid growing geopolitical conflict. The London-listed group said revenue in the first six months of the year soared 11 per cent to £14.6billion and earnings were up 13 per cent to £1.5billionn. Defence firms including BAE Systems have been boosted by a race to rearm across Europe since Russia's invasion of Ukraine three years ago. And it is set to benefit further after Nato members pledged to increase military spending to 5 per cent by 2035. '[The] Nato summit of a few weeks ago and the consensus [to increase defence spending] really underpins our confidence in the long term,' BAE chief executive Charles Woodburn said. But shares in the FTSE 100 giant dipped more than 2 per cent on Wednesday morning as investors were disappointed by the scale of the upgrade. Sales are expected to grow by 8 to 10 per cent in 2025, compared to a previous forecast of 7 to 9 per cent. Profit guidance has been upped from 8 to 10 per cent to between 9 and 11 per cent. 'Investors have lofty expectations for all defence stocks and they might have been banking on a significant upgrade to earnings guidance,' Russ Mould, investment director at AJ Bell, said. Woodburn said there might have been 'a bit of profit taking going on' on Wednesday but added that he is 'confident in the long-term outlook'. BAE Systems shares are up more than 50 per cent so far this year. BAE received £13.2billion worth of new orders in the first six months of the year, taking its order book to £75billion. And it has accelerated investment in UK facilities due to the 'deteriorating threat environment here in Europe,' Woodburn said. In the first six months of the year, it expanded its Glasgow shipbuilding site and opened a new £25million artillery factory in Sheffield. The company is on track to recruit 2,400 graduates and apprentices in the UK this year. 'We don't ourselves struggle to attract talent', Woodburn said, but warned that 'some of our supply chain may experience more challenges'. 'As the UK, across Europe and the US look to rearm and increase the pace of that, inevitably there are going to be supply chain challenges,' he said. 'We've had quite some shocks to supply chain that we have been able to navigate through,' Woodburn said, citing the Covid-19 pandemic and the start of Russia's war in Ukraine. 'It does require very active management [but] it's not something I think we can't manage,' he said.
Globe and Mail
a day ago
- Business
- Globe and Mail
ETFs in Focus in Light of Aerospace & Defense Q2 Earnings Boost
The uptrend in the Aerospace & Defense industry is mapped by the performance of the S&P Aerospace & Defense Select Industry Index, which has added 33% year to date, surpassing the S&P 500's 8.9% gain in the same period. The increase in military spending by global economies gives a significant boost to the U.S. Aerospace – Defense Industry. According to Statista, between 2020 and 2024, the United States commanded about 43% of the global market share, maintaining its position as the world's largest exporter of major weapons. Below, we highlight Q2 earnings results of a few renowned U.S. Aerospace – Defense Industry players. Earnings in Focus Northrop Grumman Northrop Grumman Corporation NOC reported second-quarter 2025 adjusted earnings of $7.11 per share, which beat the Zacks Consensus Estimate of $6.71 by 6%. Including one-time items, the company reported GAAP earnings of $8.15 per share, which improved 28% from the year-ago quarter's reported number of $6.36. The year-over-year improvement can be attributed to strong segment operating performance and a net after-tax benefit related to the divestiture of the company's training services business. The company's total sales of $10.35 billion in the second quarter beat the Zacks Consensus Estimate of $10.06 billion by 2.9%. The top line also rose 1.3% year over company updated its 2025 guidance. NOC now expects its revenues in the range of $42.05-$42.25 billion, narrower than the previous guidance in the band of $42.00-$42.50 billion. NOC now expects adjusted earnings in the band of $25.00-$25.40 per share, higher than its earlier guided band of $24.95-$25.35. RTX Corporation RTX Corporation 's RTX second-quarter 2025 adjusted earnings per share of $1.56 beat the Zacks Consensus Estimate of $1.45 by 7.6%. The bottom line also improved 10.6% from the year-ago quarter's level of $1.41, driven by growth in adjusted operating profit. RTX's second-quarter sales totaled $21.58 billion, which surpassed the Zacks Consensus Estimate of $20.53 billion by 5.1%. The top line also surged a solid 9.4% from $19.72 billion recorded for the second quarter of 2024. Lockheed Martin Lockheed Martin Corporation LMT reported second-quarter 2025 adjusted earnings of $7.29 per share, which beat the Zacks Consensus Estimate of $6.49 by 12.3%. The bottom line increased 2.5% from the year-ago quarter's reported figure of $7.11. Including one-time items, the company reported GAAP earnings of $1.46 per share, lower than the prior-year quarter's recorded earnings of $6.85. The year-over-year deterioration in earnings was mainly due to lower consolidated operating profit generated in the second quarter of 2025 compared to the prior-year quarter. Net sales were $18.16 billion, which missed the Zacks Consensus Estimate of $18.56 billion by 2.2%. The top line, however, inched up 0.2% from $18.12 billion reported in the year-ago quarter. The company partially updated its 2025 guidance. Lockheed still expects to generate sales in the range of $73.75-$74.75 billion in 2025. ETFs to Consider The aerospace and defense industry maintains a moderately optimistic outlook. Given the current geopolitical climate, the trend of rising military spending is likely to persist. For investors looking to take a bet on Q2 results as well as a continued surge in military spending, the following Aerospace – Defense ETFs provide a great opportunity. Investors can consider iShares U.S. Aerospace & Defense ETF ITA, Invesco Aerospace & Defense ETF PPA, SPDR S&P Aerospace & Defense ETF XAR, Global X Defense Tech ETF SHLD and U.S. Global Technology and Aerospace & Defense ETF WAR. Boost Your Portfolio with Our Top ETF Insights Zacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week. Don't miss out on this valuable resource. It's free! Get it now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lockheed Martin Corporation (LMT): Free Stock Analysis Report Northrop Grumman Corporation (NOC): Free Stock Analysis Report Global X Defense Tech ETF (SHLD): ETF Research Reports iShares U.S. Aerospace & Defense ETF (ITA): ETF Research Reports Invesco Aerospace & Defense ETF (PPA): ETF Research Reports SPDR S&P Aerospace & Defense ETF (XAR): ETF Research Reports RTX Corporation (RTX): Free Stock Analysis Report
Yahoo
2 days ago
- Politics
- Yahoo
Examining report Pentagon secretly transferred $934M to renovate Trump's new Air Force One
In late July 2025, reporters from The New York Times discovered a "mysterious" transfer of $934 million that they claimed would be used to renovate the Boeing 747 plane U.S. President Donald Trump received as a gift from Qatar earlier that year. Trump said on Truth Social in May that the plane was a gift for the Department of Defense (DOD), not him personally, and that it would "replace" the current Air Force One. According to the Times, the DOD would use the $934 million, taken from a yearslong project to update the U.S.'s ground-based nuclear missiles, to renovate the plane to Air Force One standards. The $934 million transfer was for an "unnamed classified project," according to the Times report. Following the New York Times article, claims (archived) circulated online about the alleged transfer, referencing (archived) the Times article. One X user wrote, "Retrofitting Trump's 747-8 luxury jet bribe from Qatar might cost taxpayers $934 million (!!!)" above a screenshot from the article. The claim also circulated on Instagram (archived), Threads (archived), Bluesky (archived) and Reddit (archived). Snopes readers also wrote in asking about the claim. However, while the New York Times article cited by social media users spreading claims about the alleged $934 million transfer was authentic, Snopes has not independently verified the document the New York Times said showed the alleged transfer. The article cited unnamed Air Force sources who reportedly "privately" conceded that the Air Force was using funds originally meant for the Sentinel land-based intercontinental ballistic missile (ICBM) project to pay for the renovation of the new Air Force One. Snopes has not been able to independently verify this information. We reached out to the New York Times journalists who wrote the article to ask if they could share verifiable details about the alleged transfer such as the document mentioned in the article. We also reached out to the Air Force to ask if it could confirm the Times' report. We await replies to our queries. According to the New York Times, the $934 million allegedly earmarked for refurbishing Trump's gifted Boeing 747 came as a "mysterious" transfer from what it described as "one of the Pentagon's most over-budget, out-of-control projects": the program to replace the U.S.'s Minuteman III ICBMs with Sentinel ICBMs. In 2024, the Pentagon estimated that project would cost $140.9 billion, 81% more than its original cost estimate of $77.7 billion. Land-based ICBMs are part of the "nuclear triad," three systems including submarines and bombers that can carry nuclear weapons. Air Force officials "privately acknowledge dipping into nuclear modernization funds for the complex project," according to the report, with "complex project" referring to the renovation of the gifted Boeing 747. On June 5, Air Force Secretary Troy Meink told a House Armed Services Committee that the renovation would likely cost "less than $400 million" despite numbers as high as $1 billion being "thrown around." Actual estimates, according to the New York Times, are classified. Snopes previously reported on the original offer from Qatar to gift the plane to the U.S. Department of Defense. We also reported on rumors that the Biden administration started negotiations for the plane or that former U.S. President Barack Obama received his own plane during his presidency. Lopez, C. Todd. "Sentinel Land-Based Nuclear Modernization Program Will Continue, With Changes." U.S. Department of Defense, 10 Jul. 2024, @realDonaldTrump. "So the Fact That the Defense Department Is Getting a GIFT, FREE OF CHARGE." Truth Social, 12 May 2025, Sanger, David E., and Eric Schmitt. "What Will It Cost to Renovate the 'Free' Air Force One? Don't Ask." The New York Times, 27 Jul. 2025, "Sentinel ICBM." Air Force Nuclear Weapons Center, 28 Jul. 2025, U.S. House Armed Services Committee. "Full Committee Hearing: 'Department of the Air Force Fiscal Year 2026 Posture.'" YouTube, 5 Jun. 2025,
