In the final quarter of 2025, the U.S. Department of Defense reinforced its procurement activity by issuing substantial contracts to major defense contractors Lockheed Martin Corporation and Boeing Company. These awards reflect consistent momentum in defense spending aimed at enhancing critical military capabilities both overseas and domestically.
Lockheed Martin's Taiwan Sensor Systems Contract
Lockheed Martin Corporation was granted an undefinitized letter contract valued at $328.5 million to deliver infrared targeting and sensor hardware systems intended for Taiwan under the Foreign Military Sales (FMS) program. This contract stipulates the production and delivery of 55 Infrared Search and Track Legion Enhanced Sensor pods, alongside ancillary equipment, designed to fulfill urgent operational requirements of the Taiwan Air Force.
The technical work supporting this contract is scheduled to take place at Lockheed Martin’s facilities in Orlando, Florida. The completion timeline has been set for June 30, 2031, indicating a multi-year engagement. At the outset, $157.3 million of Foreign Military Sales funds have been obligated to kickstart production and initial deliveries.
Boeing’s Apache Helicopter Support Engagement
Parallel to Lockheed Martin's order, Boeing secured a $2.73 billion firm-fixed-price contract that obligates the company to provide comprehensive post-production support services for the Apache helicopter platform. This contract extends through December 31, 2030, encompassing a wide scope of sustainment activities that ensure operational readiness and longevity of the Apache fleet.
Specific details regarding work locations and funding allocations for each order will be determined on an order-by-order basis during the contract period, providing flexibility in support execution.
Additional Pentagon Contracts in December 2025
These new contracts with Lockheed Martin and Boeing follow a series of significant Pentagon awards in December 2025. Boeing was awarded an $8.6 billion contract pertaining to the F-15 program for Israel, a deal that was finalized after diplomatic engagement involving former U.S. President Donald Trump and Israeli Prime Minister Benjamin Netanyahu.
Additionally, Boeing secured a $2 billion contract related to the commercial engine replacement program for the B-52 bomber, further underscoring the company’s strong positioning in U.S. defense contracts. Lockheed Martin experienced a substantial expansion of an existing contract, which saw its value increase from $15 billion to $25 billion, indicative of ongoing procurement momentum.
Market Reaction and Stock Performance
Following the announcement of these contracts, Boeing's shares experienced a modest uptick of 0.66%, trading at approximately $218.56 during premarket hours, as reported by Benzinga Pro data. Conversely, Lockheed Martin shares experienced a slight decrease of 0.10%, reflecting a marginal market adjustment.
Conclusion
The sizable inbound contracts awarded to Lockheed Martin for Taiwan's sensor systems and to Boeing for Apache helicopter support epitomize continued U.S. governmental commitment to defense readiness. The extended timelines and substantial contract values further reinforce the strategic importance of these programs. Furthermore, the recent awards to both corporations solidify their roles as key defense partners amid an environment of persistent and evolving global security challenges.