Defence & Space:
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What changed in defence and space, and why it mattered.
Lockheed Martin is investing $300 million in a Texas plant to expand missile production.
The spend is framed as a response to a missile demand surge, so the prime is adding capacity ahead of orders instead of waiting for them. It also sets up Lockheed's earnings on 2026-10-22, where capacity and demand commentary will be the thing to watch. LMT was not among the notable movers today.
Kratos' combat drone completed its first flight in Europe, and the company advanced production of its turbojet engine; the stock closed 3.6% higher.
A European flight points to export interest in the platform, and engine production progress goes to supply for the drone itself. The pack gives no detail on contracts or volumes, so the price move reflects the headline rather than a disclosed order.
Several government demand signals surfaced, all headline-only: a possible third Army CAML system, up to twelve UK nuclear attack submarines, off-the-shelf counter-drone kit for Army bases, and a new joint venture aimed at the Army light vehicle programme.
They point to continued spending interest in munitions, naval, counter-drone and land vehicles. The pack names no vendors, contracts, values or schedules, so none of these can be tied to a listed company yet.
Sector strength is still thin overall, with electronics the one clear improver this week.
Electronics strengthened sharply, which fits Elbit's gain today. Primes edged up from a very low base, and aero-engines weakened a little. Naval, land munitions, drones and autonomy, components and space were all unchanged and weak, and software-services held firm. Today's rallies are therefore happening in a mostly weak backdrop.
Primes · Naval · Land and munitions · Drones and autonomy · Aero engines · Components · Electronics · Space · Software and services
Published 16/10/2026, 08:03 UTC · claude-sonnet-5-5