We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
General Motors Boosts Defense Prospects With Lockheed Partnership
Read MoreHide Full Article
Key Takeaways
GM Defense supplied its first PAC-3 interceptor components to Lockheed Martin under a new agreement.
GM expects its defense unit to generate about $700 million in 2026 revenues.
GM is positioned for a potential $1 billion contract to build 10,000 Infantry Squad Vehicles.
General Motors Company (GM - Free Report) is supplying components for Lockheed Martin Corporation’s (LMT - Free Report) Patriot missile defense system under a recently signed agreement between the two companies.
Lockheed Martin confirmed on Sept. 17, 2026, that it had received its first shipment of mission-critical components manufactured by GM Defense for the PAC-3 Missile Segment Enhancement interceptor missile.
Per the Detroit Free Press, Lockheed Martin and GM Defense, General Motors’ defense subsidiary that also manufactures vehicles for the U.S. Army, are discussing additional collaboration as the United States seeks to expand its weapons stockpiles.
Per General Motors spokesman Jim Cain, the company would not disclose the contract’s value or production volumes because the information is proprietary. General Motors also declined to identify the manufacturing location, citing potential operational and security concerns.
GM Defense leveraged its advanced casting and machining capabilities to manufacture the components in accordance with stringent defense requirements. The first shipment arrived at Lockheed Martin on Aug. 28, 2026, less than a month after the companies formally signed the agreement on Aug. 6, 2026.
Per General Motors’ CEO Mary Barra, the defense business is a significant growth opportunity for the automaker. General Motors expects the unit to generate approximately $700 million in revenues in 2026 while developing a backlog of future programs that could deliver double-digit profit margins over the coming years. General Motors is also collaborating with Lockheed Martin and other major industry players to improve the speed, scale and resilience of the U.S. defense industrial base.
Additionally, General Motors is positioned to secure a potential $1 billion contract to manufacture 10,000 Infantry Squad Vehicles for the U.S. military, based on the Chevrolet Colorado platform.
The Zacks Consensus Estimate for GTX’s 2026 sales and earnings implies year-over-year growth of 7.2% and 25.7%, respectively. The EPS estimate for 2026 and 2027 has improved 10 cents each over the past 60 days.
The Zacks Consensus Estimate for CYD’s 2026 sales and earnings implies year-over-year growth of 58.6% and 68.6%, respectively. The EPS estimate for 2026 and 2027 has improved 36 cents and declined 7 cents, respectively, over the past 60 days.
View the Zacks #1 Rank List
Image: Bigstock
General Motors Boosts Defense Prospects With Lockheed Partnership
Key Takeaways
General Motors Company (GM - Free Report) is supplying components for Lockheed Martin Corporation’s (LMT - Free Report) Patriot missile defense system under a recently signed agreement between the two companies.
Lockheed Martin confirmed on Sept. 17, 2026, that it had received its first shipment of mission-critical components manufactured by GM Defense for the PAC-3 Missile Segment Enhancement interceptor missile.
Per the Detroit Free Press, Lockheed Martin and GM Defense, General Motors’ defense subsidiary that also manufactures vehicles for the U.S. Army, are discussing additional collaboration as the United States seeks to expand its weapons stockpiles.
Per General Motors spokesman Jim Cain, the company would not disclose the contract’s value or production volumes because the information is proprietary. General Motors also declined to identify the manufacturing location, citing potential operational and security concerns.
GM Defense leveraged its advanced casting and machining capabilities to manufacture the components in accordance with stringent defense requirements. The first shipment arrived at Lockheed Martin on Aug. 28, 2026, less than a month after the companies formally signed the agreement on Aug. 6, 2026.
Per General Motors’ CEO Mary Barra, the defense business is a significant growth opportunity for the automaker. General Motors expects the unit to generate approximately $700 million in revenues in 2026 while developing a backlog of future programs that could deliver double-digit profit margins over the coming years. General Motors is also collaborating with Lockheed Martin and other major industry players to improve the speed, scale and resilience of the U.S. defense industrial base.
Additionally, General Motors is positioned to secure a potential $1 billion contract to manufacture 10,000 Infantry Squad Vehicles for the U.S. military, based on the Chevrolet Colorado platform.
General Motors’ Zacks Rank & Key Picks
GM currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the auto space are Garrett Motion Inc. (GTX - Free Report) and China Yuchai International Limited (CYD - Free Report) . While GTX sports a Zacks Rank #1 (Strong Buy), CYD has a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for GTX’s 2026 sales and earnings implies year-over-year growth of 7.2% and 25.7%, respectively. The EPS estimate for 2026 and 2027 has improved 10 cents each over the past 60 days.
The Zacks Consensus Estimate for CYD’s 2026 sales and earnings implies year-over-year growth of 58.6% and 68.6%, respectively. The EPS estimate for 2026 and 2027 has improved 36 cents and declined 7 cents, respectively, over the past 60 days.