Trump's Expensive Golden Dome Launches New Era For Defense Stocks Like RTX, Lockheed Martin, L3Harris

by Erica Kollmann Benzinga Staff Writer

Zinger Key Points

Several major defense contractors, like RTX, Lockheed and L3Harris, will likely be called on to construct the Golden Dome.
The project has initial funding of $25 billion included in a major budget bill currently before Congress.
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President Donald Trump on Tuesday outlined an ambitious $175 billion plan to develop what he’s dubbing a “Golden Dome” missile defense system.

What To Know: Sen. Jim Banks (R-Ind.) said L3Harris Technologies, Inc. LHX will manufacture satellites for what is expected to integrate land, sea, and space-based technologies.

The Senator also said that "a lot" of American companies will be involved in the project.

Lockheed Martin Corp. LMT is a front-runner for Golden Dome contracts due to its missile defense and command-and-control systems expertise. Advanced radar systems and missile interceptors from RTX Corp. RTX are also likely critical to the Golden Dome's tracking and engagement capabilities.

SpaceX, led by major Republican donor Elon Musk, in partnership with Palantir Technologies, Inc. PLTR and Anduril, are also leading contenders for the defense system’s satellite and space-based sensor segment.

The consortium's proposal includes deploying hundreds of satellites for missile detection and tracking. A subscription-based service model for the operation of the Golden Dome is also under discussion.

“Once fully constructed, the Golden Dome will be capable of intercepting missiles even if they are launched from other sides of the world and even if they are launched from space,” Trump told reporters on Tuesday. He did not name specific companies in his initial announcement.

General Michael Guetlein, vice chief of space operations for the U.S. Space Force, is leading the project.

How Pricey Is It: The Golden Dome has initial funding of $25 billion included in a major budget bill currently before Congress and Trump estimated its total projected cost at $175 billion over three years. However, some experts and politicians see the total cost of the Golden Dome being much higher.

Sen. Tim Sheehy (R-Mont.) expects costs to be “in the trillions if and when” the dome is completed, per Space News. Sheehy leads the U.S. Senate's “Golden Dome caucus”

Analysts estimate that about 70% of the initial $25 billion in funding will flow to research and development and early-stage production, according to AInvest.

Israel's Iron Dome, in comparison, reportedly costs several billion dollars to construct. The U.S. has allocated at least $3 billion for the Iron Dome, per Congressional Research Service.

A single Iron Dome missile costs roughly $50,000 to manufacture.

Trump's announcement has already triggered positive moves in defense sector stocks, and further contract news could drive additional rallies.

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