Key Takeaways

  • Seven defense primes generated $21.2 billion in free cash flow.
  • They returned 98% of that to investors through dividends and share repurchases.
  • Boeing was excluded due to negative free cash flow burn.
  • RTX issued the most in dividends at $3.2 billion
RTX Lockheed Martin Boeing General Dynamics BAE Systems L3Harris Huntington-Ingalls Industries

Strategic Implications

The data suggests that defense contractors may be prioritizing shareholder returns over investments in production lines, which could impact the president’s demands for increased production capacity. The analysis highlights the need for companies to balance their investment strategies with the needs of the military and the country.