GM, LMT Stocks Gain Overnight: General Motors, Lockheed Martin Reportedly Working On Weapons Parts Partnership

• With conflicts in Ukraine and the Middle East straining missile inventories, officials are urging manufacturers to help increase output.
• The talks could expand GM's role in defense through its GM Defense unit.
• Lockheed Martin continues to benefit from rising defense spending, securing major contracts in June.

Shares of General Motors (GM) and Lockheed Martin (LMT) moved higher in overnight trading after a report said the automaker is in early talks with the defense contractor to supply components for weapons systems, potentially expanding its footprint in military manufacturing. 

GM, LMT Talks Amid Defense Supply Strain

General Motors' discussions with Lockheed Martin are part of a broader U.S. government effort to ramp up domestic weapons production as global conflicts increase demand and supply chains remain under pressure. 

According to a Wall Street Journal report, citing people familiar with the matter, the U.S. defense sector faces mounting pressure to replenish munitions inventories depleted by geopolitical tensions, including conflicts in Ukraine and the Middle East. 

Officials have been urging traditional manufacturers to help expand output, as established defense contractors struggle to meet rising demand for missiles and related systems.

GM’s Defense Ambitions

For General Motors, the move marks a potential deepening of its involvement in the defense sector through its GM Defense unit, which it revived nearly a decade ago. 

The initiative shows that the government is looking to automakers as potential suppliers for military programs because they have large factories and strong experience in production and logistics.

General Motors stock traded over 1% higher overnight on Monday. On Stocktwits, retail sentiment around the stock shifted from ‘neutral’ to ‘bearish’ the previous day. 

LMT’s Presence From Fighter Jets To Space Systems 

Lockheed Martin has emerged as one of the biggest beneficiaries of rising defense spending after securing a series of major military contracts in June, cementing its position across aviation, space and naval defense programs.

Among the largest awards announced this month is a $2.29 billion framework tied to support and sustainment services for the F-35 Lightning II fleet. The agreement strengthens Lockheed Martin's role not only as the manufacturer of the aircraft but also as a key provider of maintenance, logistics and operational support.

In the space sector, the company received a contract valued at roughly $514 million to build additional GPS IIIF satellites for the U.S. Space Force to improve navigation capabilities.

Lockheed Martin’s stock edged 0.08% higher overnight, and retail sentiment shifted to ‘neutral’ from ‘bearish’ territory the previous day. 

Last week, the House Appropriations Committee unveiled a 2027 defense spending bill that would raise the Pentagon budget to more than $1 trillion, the largest in U.S. history and about $234 billion higher than the 2026 level. 

So far this year, GM and LMT stocks have gained over 3% and 9%, respectively. 

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