US delivers F-16V fighter jets to Taiwan as island eyes threat from China

The US Army selected Anduril, Castelion, Lockheed Martin, Mach Industries, and RTX to develop 1,000-km range PrSM Increment 4 prototypes for HIMARS. L3Harris partners with Lockheed on ramjet propulsion. Final down-select is set for fiscal 2028. The $1.21B Increment 2 contract was awarded to Lockheed in September. The weapon targets moving maritime and land targets, with Indo-Pacific focus.

The Pentagon's continued spending supports four defense stocks: Lockheed Martin (LMT), General Dynamics (GD), RTX, and Northrop Grumman (NOC). LMT reported $20.06B Q2 revenue (+10.5% YoY) and $7.94 EPS, with a $3.45 quarterly dividend. GD saw $14.1B Q2 revenue (+8.1%) and $4.24 EPS, with a $1.59 quarterly dividend. RTX had $289B backlog, $0.73 quarterly dividend, and raised 2026 free cash flow guidance. NOC reported $20B Q2 awards, $7.68 EPS, and $2.47 quarterly dividend.

Taiwan received its first two F-16 Block 70 fighters from Lockheed Martin, part of a 66-aircraft order. The delivery is the largest for this variant. The fighters will join Taiwan's existing fleet. Lockheed has delivered similar aircraft to Bahrain, Bulgaria, and Slovakia, with more orders from Bulgaria, Morocco, Jordan, and Peru.

The U.S. Army awarded Lockheed Martin a $1.2B contract to produce the Increment II Precision Strike Missile (PrSM), doubling strike capacity by allowing two missiles per launcher. The PrSM will replace the aging Army Tactical Missile System (ATACMS) and can engage moving land and maritime targets, according to Lockheed Martin. Experts suggest the system will increase range and survivability, offering long-term savings despite the high initial cost.

The US is deploying a third aircraft carrier strike group to the Middle East, totaling over 20,000 personnel, as tensions with Iran escalate. President Trump hinted at potential strikes post-midterms. Iran may target US bases to hinder operations. The Pentagon signed a $24.4B deal with RTX for SM-6 missiles, part of a $103.7B missile replenishment effort. Recent attacks, including one on a US base in Bahrain, highlight escalating hostilities.

Lockheed Martin (LMT) secured a $245M contract with the US Navy to supply IRST Block II hardware for the F/A-18 Super Hornet. The tech includes passive infrared sensors for threat tracking and advanced software for long-range missile strikes. The fixed-price deal covers 74 processors, 27 inertial measurement units, and 48 infrared receivers. The IRST21 sensor enhances stealth and operational effectiveness in electronic warfare environments.