The Pentagon wrapped up 2025 by handing out $3.1 billion in fresh contracts to two of America's defense heavyweights. Lockheed Martin Corporation (LMT) picked up $328.5 million for Taiwan-focused sensor systems, while Boeing Company (BA) landed a much larger $2.73 billion deal for Apache helicopter support work. It's another data point confirming that U.S. defense spending isn't slowing down anytime soon.

Taiwan Gets Advanced Targeting Tech

Lockheed's contract is what the Pentagon calls an "undefinitized letter contract," which basically means they're moving fast and will sort out the final details later. The $328.5 million award covers 55 Infrared Search and Track Legion Enhanced Sensor pods, plus related equipment, all destined for the Taiwan Air Force through the Foreign Military Sales program.

These aren't your basic sensors. The pods provide advanced targeting and tracking capabilities, addressing what the Defense Department describes as urgent operational needs for Taiwan. Work happens in Orlando, Florida, with completion expected by June 30, 2031. The Pentagon has already obligated $157.3 million in FMS funds to get things rolling.

Boeing's Long-Term Apache Commitment

Boeing's deal is substantially bigger and runs longer. The $2.73 billion firm-fixed-price contract covers post-production support services for Apache helicopters through December 31, 2030. The specifics on work locations and funding will be determined as individual orders come through, giving the arrangement flexibility as needs evolve.

A Banner Month for Defense Contractors

These latest contracts cap off a particularly strong December for both companies. Boeing secured an $8.6 billion F-15 program contract for Israel, awarded after President Donald Trump met with Israeli Prime Minister Benjamin Netanyahu. The company also nabbed a $2 billion contract for the B-52 commercial engine replacement program.

Lockheed Martin had its own win when the Pentagon expanded an existing contract from $15 billion to $25 billion, a 67% increase that underscores the sustained momentum in U.S. defense procurement. Between Taiwan sensor systems, Israeli fighter jets, and Apache support, it's clear that defense budgets remain robust heading into the new year.

Price Action: Boeing shares were up 0.66% at $218.56 during premarket trading on Friday. Lockheed Martin shares were down 0.10%.