US mulls equity stakes in defence firms, Lockheed Martin among targets

The U.S. government is reportedly exploring taking ownership stakes in major defence contractors, with Lockheed Martin identified as a potential target, Commerce Secretary Howard Lutnick told CNBC’s Squawk Box.

Lutnick described the discussions as “monstrous,” drawing a parallel to the Trump administration’s recent deal to acquire a 10% stake in semiconductor giant Intel.

“Lockheed Martin is basically an arm of the U.S. government,” he said, highlighting the company’s extensive reliance on federal contracts.

According to Lockheed Martin’s 2024 SEC filings, approximately 73% of its net sales came from U.S. government contracts, with 65% of that revenue sourced specifically from the Department of Defence. Lutnick suggested that while the economics of such an investment would be handled by the Department of Defence, the idea remains under active consideration.

The defence contractor’s shares responded modestly to the news, rising 1.48% when markets opened on Tuesday. Lockheed Martin did not immediately respond to Forbes’ request for comment.

The proposal follows a broader push by the Trump administration to establish a sovereign wealth fund for the United States. In a recent development, the government purchased a 10% stake in Intel for $8.9 billion, funded through money from the CHIPS Act signed in 2022.

Critics have decried the move as excessive government intrusion into private industry, while supporters, including Trump officials, defended it as a strategic investment comparable to sovereign wealth funds maintained by other nations.

National Economic Council Director Kevin Hassett said Monday that such equity purchases could expand beyond the semiconductor industry. “I’m sure that at some point there’ll be more transactions, if not in this industry then other industries,” he said.

If realised, a U.S. stake in defence firms like Lockheed Martin could signal a new era of direct federal investment in critical sectors, raising questions about government influence over private industry and strategic national security assets.

By Aghakazim Guliyev