Gabelli Likes Lockheed, RTX, Boeing - and a Small Supplier You've Never Heard Of

"Anyone that's producing missile rocket engines, seeker heads - Lockheed, RTX, Raytheon, Boeing all make the sort of the main parts of the missile. But there's other parts for it as well, like the casings, the nose cones, all that. And we have a small company called Albany International. It's a small aerospace and defense supplier. And they make these components on these weapons systems."

"Lockheed Martin posted a $194 billion record backlog at year-end 2025, with F-35 deliveries jumping to 191 in 2025 from 110 in 2024. Its Missiles and Fire Control segment swung from a $804 million operating loss in Q4 2024 to a $535 million profit in Q4 2025. CEO Jim Taiclet called out unprecedented demand and guided 2026 revenue to $77.5 to $80 billion."

"RTX is equally compelling with its record $268 billion backlog that includes $107 billion in defense. Pratt & Whitney military revenues grew 30% in Q4 on F135 production. CEO Chris Calio said we enter 2026 with great momentum, and RTX is up 65% over the past year."

Mario Gabelli identifies a significant capital expansion cycle in the defense sector driven by missile production demand. Major defense primes—Lockheed Martin, RTX, Raytheon, and Boeing—manufacture primary missile components, while smaller suppliers like Albany International produce casings and nose cones. Defense contractors require Department of Defense contract assurance before committing to massive capital expenditures, and this assurance is now materializing. Lockheed Martin demonstrates the trend with a record $194 billion backlog, F-35 deliveries doubling year-over-year, and its Missiles and Fire Control segment swinging to profitability. RTX reports a $268 billion backlog with $107 billion in defense contracts and 30% military revenue growth. Boeing carries a $682 billion backlog while ramping production. These metrics indicate sustained multi-year revenue visibility and capital investment opportunities.

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