The War in Ukraine Is Finally Starting to Pay Off for Big Defense Contractors
The two largest U.S. defense contractors saw a boost in sales as the Pentagon accelerated weapons orders to fill the gap left by billions in weapons and equipment sent to Ukraine, the companies said Tuesday.
Lockheed Martin and Raytheon Technologies posted fourth quarter 2022 earnings Tuesday that came in still slightly below earnings from the same period in 2021, attributing the downturn to labor shortages and supply chain issues that suppressed earnings throughout 2022, statements show. However, the two largest beneficiaries of $6.6 billion in Department of Defense (DOD) contracts awarded to industry as part of the Ukraine war response are picking up the pace compared to the previous quarter, according to The Wall Street Journal.
“We’ve got the orders, we’ve got the capacity,” Raytheon CEO Greg Hayes said on an investor call Tuesday to break down the company’s quarterly earnings report. “We just need to bring the materials in.”
Lockheed reported quarterly sales of $19 billion, 3% above internal forecasts, netting $1.9 million in profit compared to $2.05 billion the prior year. Raytheon earned $1.4 billion in the fourth quarter of 2022 compared to $685 million in the same period in 2021, with sales skyrocketing nearly 6% to $18.1 billion, results that beat Wall Street expectations, The Associated Press reported. (Read more from “The War in Ukraine Is Finally Starting to Pay Off for Big Defense Contractors” HERE)
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