Ukraine's $150 Billion Commitment To Buy US Weapons Could Hand RTX, Lockheed And Northrop Billions

Ukraine is reportedly promising to buy $100 billion worth of American weapons, financed by Europe, in return for a security guarantee by the U.S.

The $150 Billion Proposal

According to documents seen by The Financial Times, Kyiv will agree to buy $100 billion worth of American-made weapon systems, in addition to a $50 billion deal to produce drones with Ukrainian companies that have expanded rapidly since Russia's 2022 invasion.

In return, the U.S. will guarantee Ukraine’s security after a peace settlement with Russia, according to proposals made by the latter, according to the report.

Ukraine’s pitch echoes President Donald Trump’s preference for commercial deals rather than aid. When asked about additional military aid for Ukraine on Monday, Trump said, “We're not giving anything. We're selling weapons.”

While the document, seen by FT, doesn’t mention the weapons or systems that Ukraine wants to procure, it does hint at the nation’s interest in buying at least 10 U.S.-made Patriot air defense systems to defend its cities and infrastructure.

Windfall For U.S. Defense Contractors

A deal of this magnitude can be a windfall for U.S. defense contractors, who could be handed contracts worth billions of dollars.

Virginia-based RTX Corp. RTX, which manufactures the Patriot air-defense system, is likely the immediate beneficiary if this deal is finalized, with a potential order for 10 batteries to defend Ukrainian cities and infrastructure. Lockheed Martin Corp. LMT, which makes PAC-3 interceptors used in the Patriot system, is next in line.

Northrop Grumman Corp. NOC could stand to benefit from Ukraine's $50 billion drone initiative, given its extensive experience and portfolio of products in unmanned aerial systems, sensors and more.

U.S. defense contractors have substantial tailwinds aligning in their favor in recent weeks, with Trump announcing last month that the $151 billion “Golden Dome” missile shield will soon be open for proposals, with the U.S. Missile Defense Agency leading the project.

Stocks / ETFs	Year-To-Date Performance
RTX Corp. RTX	+34.04%
Lockheed Martin Corp. LMT	-8.63%
Northrop Grumman Corp. NOC	+24.96%
iShares US Aerospace & Defense ETF ITA	+35.25%