What's going on?

Lockheed Martin, the world�s largest military contractor in terms of revenue, reported its financial results on Tuesday. Perhaps unsurprisingly, given the apparent increase in conflicts around the world, Lockheed handily beat investors� expectations and said it would make more money for the full year than it previously expected.

What does this mean?

A more dangerous world might have something to do with Lockheed�s success, but it�s also down to a few basic business objectives. The company has become a lot more efficient at making its flagship fighter jet, the F-35. The faster pace of deliveries led to higher-than-expected revenue for the company. Also, it’s making more profit than expected from selling helicopters. Last year, Lockheed bought helicopter maker Sikorsky Aircraft for $9 billion. It also sold the part of its business that provides IT services to the US government because it wanted to focus more on making equipment � and so far that�s paying off nicely.

Why should I care?

For the stock: Lockheed�s shares hit a new all-time high on Tuesday.


The stock price is up almost 20% this year. Of course, investors like it when a company makes more money than expected and predicts that it will do well going forward. But there is also probably a sense that the apparent increase in conflicts around the world (especially in the Middle East) will lead to more weapons sales.

For you personally: Some investment funds avoid defense contractors in an attempt to stay in line with your values.


Values-based investing is gaining popularity, especially as millennials accumulate more money to invest (it�s a very popular concept for millennials, apparently). As the collective wealth of millennials increases over time, it will be important for the financial industry to offer ways that millennials can invest while also staying true to their values, e.g. not supporting a weapons manufacturer (if that is your viewpoint).