Trump turns NATO spending fight into win for US defense companies

• Lockheed Martin will establish a Patriot PAC-3 missile sustainment facility in Europe with Germany, Netherlands, Poland, and Sweden, and partner with Rheinmetall to produce ATACMS missiles in Germany starting as early as next year
• RTX plans to expand AMRAAM missile production in Europe and double Stinger missile production through partnerships with European firms including Diehl Defence
• Four NATO countries signed letters of interest for Northrop Grumman's MQ-4C Triton maritime surveillance drones, while Anduril will partner with Polish firm PGZ to produce Barracuda-500M cruise missiles in Poland

Summary

President Trump secured approximately $3 billion in defense deals and joint ventures between U.S. defense contractors and European NATO allies during the recent NATO summit in Turkey. These agreements aim to boost defense production capacity on both sides of the Atlantic while addressing Trump's push for increased NATO defense spending.

Key Deals and Companies:

• Lockheed Martin will establish a Patriot Advanced Capability-3 (PAC-3) missile sustainment facility in Europe, partnering with the U.S., Germany, Netherlands, Poland, and Sweden. The company will also partner with German firm Rheinmetall to produce Army Tactical Missile Systems (ATACMS) in Germany, with production expected to begin next year.

• Northrop Grumman received letters of interest from four countries for its MQ-4C Triton maritime surveillance drones.

• RTX (formerly Raytheon) will conduct a feasibility study with the Department of War to expand production of Advanced Medium-Range Air-to-Air Missiles (AMRAAM) in Europe. The company also plans to double Stinger missile production through partnerships with Germany's Diehl Defence and Dutch suppliers.

• Boeing will work with Rheinmetall-Italy on potentially expanding production of Small Diameter Bombs for Europe.

• Anduril will partner with Poland's PGZ to produce Barracuda-500M cruise missiles in Poland, aiming for majority European component sourcing.

Market Implications:

These deals strengthen the transatlantic defense industrial base and position U.S. defense contractors for increased revenue through European production partnerships. The agreements address high demand for munitions depleted by conflicts in Ukraine and the Middle East while enhancing NATO's collective defense capabilities.