Chemring Group Reports Record £1.4 Billion Order Book and 7% Revenue Growth

The U.S. Department of War signed a landmark framework agreement with Lockheed Martin to rapidly scale production and delivery of the AIM-260 Joint Advanced Tactical Missile, establishing a multi-year procurement pathway under the Trump administration's "Arsenal of Freedom" framework. The AIM-260 JATM is designed to replace the legacy AIM-120 AMRAAM with significantly extended range, advanced signal processing and superior lethality against peer and near-peer air threats. Lockheed Martin is the lead prime contractor, while Northrop Grumman supplies advanced solid rocket motors, warheads and sensor technologies and has delivered more than 1 million tactical solid rocket motors. RTX Corporation, the legacy manufacturer of AMRAAM, is working with the U.S. government and NATO allies to scale AMRAAM production to at least 1,900 units per year, and Boeing and General Dynamics also stand to benefit as suppliers of navigation, guidance, energetics and structural components. The framework is expected to benefit defense-focused exchange-traded funds, including the iShares U.S. Aerospace & Defense ETF with $12.54 billion in net assets, the Invesco Aerospace & Defense ETF with a market value of $7.63 billion, and the State Street SPDR S&P Aerospace & Defense ETF with $6.13 billion in assets under management.

General Motors has delivered its first components for Lockheed Martin interceptor missiles, providing precision castings to house the weapon for PAC-3 Patriot missiles as the defense contractor boosts production to rebuild US stocks amid the Iran war and meet international demand. Lockheed and GM signed a formal contract agreement on August 6 and the first batch of PAC-3 components was delivered August 28, a 22-day turnaround that Tim Cahill, president of Lockheed Martin Missiles and Fire Control, called extraordinary and evidence of the company's focus on execution. Lockheed plans to triple the volume of PAC-3 production to 2,000 by the end of next year, Chief Executive Jim Taiclet said Thursday at a Morgan Stanley conference, adding that significant international demand means the company is targeting even greater than a tripling of volumes, though building the supply chain will take time. The deliveries come as government reports flag eroded US munitions supplies: the Department of Defense Inspector General said this week that expenditure on Operation Epic Fury has resulted in strategic inventory shortfalls and revealed industrial base bottlenecks, while a September 15 Congressional Budget Office report cited reduced interceptor inventories for several years and put the Iran conflict's total cost to the US military at around $38 billion as of August 1. GM, which has targeted defense as a growth area, expects defense revenues of $700 million in 2026, Chief Executive Mary Barra said in July, after the Army ordered more than 10,000 infantry squad vehicles following an initial procurement of 1,200.