Boeing stock struggled to regain technical support Tuesday, earning a modest lift from a series of contracts valued at $2.7 billion to supply the U.S. military and Lockheed Martin with critical guidance technology for Patriot interceptor missiles.
The multiyear contracts will see Dow Jones Industrial component Boeing provide upward of 3,000 PAC-3 seekers. Seekers are components which enable Patriot missiles to detect and intercept aerial threats. The new contracts will run through 2030, according to a statement from Boeing. The deal requires production of roughly 750 seekers per year.
Lockheed Martin serves as the lead defense contractor on Patriot missile systems. Under the latest batch of agreements Boeing will operate as a subcontractor specifically providing the seekers. In September the U.S. military awarded Lockheed Martin a $9.8 billion contract to make 2,000 of the Patriot missiles' most advanced versions.
Despite being among the biggest firms in the industry, Boeing and Lockheed Martin stocks have both underperformed their peers this year. Boeing's stock, while up a respectable 21% year to date, is far off its rivals GE Aerospace — up 78% in 2025 — and French jet maker Airbus, whose shares are up 46% this year. Meanwhile Lockheed Martin's share price rose only 3.7% over the same time period.
Boeing Stock Consolidating
Shares of Boeing scrubbed off early losses and gained 0.4% on Tuesday following the announcement. The Dow Jones stalwart is currently lagging below technical support in a 12-week-long flat base.
Patriot missiles are among the most sophisticated air defense systems in the world. They have become critical elements in Ukraine's defense against Russia in the ongoing war between the two countries. Since the outbreak of the war, the U.S. and its European allies have sent hundreds of Patriot missiles to Ukraine. In July the U.S. and Germany agreed to replenish shipments of Patriot missiles to Ukraine, after repeated requests from the government in Kyiv.
The recent surge in demand for Patriot missiles extends beyond the Ukrainian war. The ongoing turmoil in the Middle East saw the U.S. employ its own battery of Patriot missiles earlier this year after Iranian airstrikes on an American military base in Qatar. In June, Patriot missiles intercepted 13 of 14 missiles over the U.S. Air Force Al Udeid military base in Qatar that Iran launched in retaliation for a series of U.S. strikes on its nuclear facilities.
On Tuesday Boeing announced third-quarter deliveries of its commercial and military aircraft. Boeing delivered 160 commercial aircraft, including 121 of its 737 model and 24 787s. Investors are keenly scrutinizing the company's production output as the company struggles to recover after a series of malfunctions in Boeing planes. Among the most notable was when the door of an Alaska Airlines flight blew off mid-flight in January 2024.
