Will Greece's New Air Defense Plan Boost Lockheed Martin's Stock?

Key Points
Lockheed Martin is a long-standing supplier to Greece.
The country will spend up to $36 billion bolstering its “Achilles Shield” air defense system.
That spending package includes orders for Lockheed Martin equipment, but it doesn’t really move the needle for the stock.
- 10 stocks we like better than Lockheed Martin ›
Global military conflicts are prompting some nations to take preventive measures, boosting defense spending today to potentially ward off aggression.
Greece is among the countries taking pre-emptive steps. Earlier this week, a parliamentary committee there approved a spending package of up to $36 billion over a decade to bolster its air defense system, including the "Achilles Shield," which is akin to Israel's "Iron Dome." The objective is to be prepared if the relationship with neighboring Turkey, which is described by some as "unneighborly" and tense, turns sour.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Some investors may be pondering if Greece's pledge to increase air defense spending will help already high-flying shares of Lockheed Martin (NYSE: LMT) gain more altitude, but the devil is in the details.
Greek spending helps, but it's not a near-term jolt
Over the five days ending March 18, a period that included Greek news, shares of Lockheed dipped 2.52%. Sure, some of that has to do with weakness in the broader market, and that dip might be a case of some profit-taking in a stock that's up nearly 33% year to date. It may also be a result of markets saying Greece's upped spending pledge isn't going to be a near-term tailwind to Lockheed's earnings per share.
Sure, that may be disappointing to investors who know the history between this company and Greece, which spans 75 years and includes famed aircraft such as the F-16 and F-35, among others, but context matters. Lockheed Martin is a $146.41 billion company. Hence, a contract worth $36 billion spanning a decade isn't a game changer in the near term, even though it's additive to the longer-term investment thesis.
Additional context can ease some of the aforementioned disappointment because even if Greece spends the full $36 billion through 2035, not all of that capital will go to Lockheed. At least $3.5 billion is being directed to a pair of Israeli companies.
For Lockheed investors who are keeping score at home, Greece's expenditures include upgrading 38 F-16s and purchasing 20 new F-35s. Those shareholders may also find some comfort in knowing the company delivered a record number of those jets last year and cleared its backlog, so it may be able to get the new F-35s to Greece at a pace that satisfies both client and shareholders.
More reasons to consider Lockheed stock
Alone, the Achilles Shield spending isn't a reason to buy Lockheed, but it is another example of global defense budgets heading higher, and that is a catalyst for defense equities.
For long-term investors, there are other reasons to like this stock, including the industrial sector's status as a front-and-center player in the hard-asset, low-obsolescence (HALO) trade. Translation: Lockheed and its ilk are unlikely to be disrupted by artificial intelligence (AI).
Looking for more near-term satisfaction? Industrial sector earnings are expected to grow 11.6% this year, with more than half the groups in the sector forecast to grow at double-digit rates. Those are trends that could benefit Lockheed.
Should you buy stock in Lockheed Martin right now?
Before you buy stock in Lockheed Martin, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Lockheed Martin wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $510,710!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,105,949!*
Now, it’s worth noting Stock Advisor’s total average return is 927% — a market-crushing outperformance compared to 186% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of March 19, 2026.
Todd Shriber has no position in any of the stocks mentioned. The Motley Fool recommends Lockheed Martin. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.