Six months into the Iran war, the Trump family is among the winners

Ultra Maritime announced that five new US-specification sonobuoys (Q-53H, Q-62G, Q-101B, Q-125B, Q-36B) are ready for production. The company claims it is the first to offer a complete suite of these anti-submarine warfare technologies. Production is ramping up across US, UK, and Canada facilities, with over 1,000 sonobuoys made daily. Lockheed Martin agreed to acquire Ultra Maritime for $3.45bn, pending approvals.

Kratos Defense (KTOS) and Northrop Grumman (NOC) are compared as investment options in the military drone sector. Kratos, a pure-play drone maker, reported Q2 revenue growth of 30.5% and raised annual guidance. Northrop, a larger contractor, reported Q2 revenue growth of 5% and increased its guidance. Northrop is noted for its profitability, dividend, and lower valuation.

The U.S. Army received prototypes of the XM30 armored vehicle from GDLS (Wolf) and American Rheinmetall (Lynx) to replace the M2 Bradley. Both vehicles feature a 50mm cannon, hybrid propulsion, and unmanned turrets. Testing will occur this year, with a winner expected in 2027. The program represents a $45 billion investment.

Jefferies reiterated a Hold rating on Lockheed Martin (LMT) with a $595 price target, citing its undervaluation and growth potential. The F-35 program, a key revenue driver, saw a $51 billion cost increase due to modernization. LMT recently secured multiple defense contracts, including missile defense and F-35 modifications, highlighting its strategic positioning. The company's revenue over the last twelve months was $77 billion, with a PEG ratio of 0.38.

Lockheed Martin (LMT), a $125.7B defense contractor, has outperformed the industrial sector with a 12.6% YTD gain. It raised 2026 revenue and EPS guidance, driven by strong missile sales and a $35B THAAD contract. Its backlog surged 38.3% to $230.4B. Analysts give LMT a 'Moderate Buy' rating with a $636.14 price target.

General Dynamics Land Systems released a photo of its Wolf XM30 prototype in transit, covered by a tarp. The company delivered the prototype to the U.S. Army on August 21, according to Geoffrey Norman, director of strategy at General Dynamics. The Wolf XM30 is one of two designs competing to replace the M2 Bradley Infantry Fighting Vehicle, with a decision expected in 2027. The program's value is approximately $1.6 billion.