Updated at 10:10 am EST
Lockheed Martin (LMT) - Get Free Report shares jumped higher Monday after the German government agreed to buy 35 new F-35A fighter jets from the defense and aerospace group as it ramps-up military spending in the wake of Russia's three week war on Ukraine.
Germany will purchase the jets as part of its plan to replace its existing fleet of Tornado aircraft, sources told the Reuters news agency. The deal was unveiled by a member of the Germany parliament Monday in Berlin.
Europe's largest economy said last month that it would boost military spending to around 2% of GDP as part of a plan that new Chancellor Olaf Scholz told an extraordinary session of parliament on February 27 was aimed at "investing more in the security of our country to protect our freedom and democracy."
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Lockheed Martin shares were marked 1.6% higher in early Monday trading to change hands at $445.80 each, a move that would extend the stock's year-to-date gain to around 25.8%.
Lockheed boosted its 2022 profit forecast in late January, following stronger-than-expected fourth quarter earnings, and now sees full-year earnings in the region of $26.70 per share.
Lockheed earned $2 billion over the three months ending in December, just ahead of analysts' forecasts, on revenues of $17. 7 billion.
The group delivered 142 F-35 planes last year, despite concerns over flaws in its software that were first identified during an upgrade in 2020.