A pivotal executive order signed by the White House in December is fundamentally reshaping the U.S. space economy, transitioning the government’s role from a primary operator to a leading customer. This strategic pivot is accelerating programs like Artemis and, more critically, catalyzing a lucrative “as-a-service” commercial model. By prioritizing the purchase of data, transport, and capabilities rather than owning the hardware, the policy unlocks predictable, long-term revenue streams for private industry.
Amid this transformation, two established defense contractors with deep roots in space—Lockheed Martin (LMT) and Leidos Holdings (LDOS)—are positioned as primary beneficiaries, with their businesses and stock performance already reflecting the powerful tailwind.
The global aerospace and defense titan has seen its Space segment become a core growth engine. Lockheed Martin is a principal contractor for NASA’s Orion spacecraft and a key builder of military satellites, missile defense systems, and deep-space exploration technology.
The division’s financial momentum is striking. In its latest quarterly report, Space revenue rose to $3.36 billion, with operating profit surging 22% to $331 million year-over-year. The company’s massive total backlog of $179.1 billion—including $38.4 billion for its Space unit—provides exceptional revenue visibility for years to come.
Beyond operational growth, Lockheed rewards shareholders robustly. It recently raised its quarterly dividend by 5% to $3.45 per share, marking 23 consecutive years of increases, and boosted its share repurchase authorization to $9.1 billion, underscoring confidence in its financial future.
While more diversified than a pure-play aerospace firm, Leidos holds indispensable roles in key space missions. A NASA partner for over two decades, the company recently secured a $760 million subcontract for the Artemis program, focusing on critical spacecraft life-support and laser air-monitoring systems.
Leidos also posted record performance, with Q3 revenue hitting $4.5 billion and EPS growing 5%. It is simultaneously expanding beyond defense through strategic acquisitions, such as the $2.4 billion planned purchase of engineering firm ENTRUST Solutions Group, diversifying its revenue base into the utilities sector.
For investors, the two stocks present complementary profiles:
The White House’s new commercial space doctrine has undeniably launched a golden era for the industry. On this freshly paved orbital highway, Lockheed Martin and Leidos, with their established expertise and contract wins, are already in the fast lane.
