MW Boeing's stock extends bounce after 7-year missile deal with the Trump administration
By Tomi Kilgore
Shares lead the Dow's early gainers as Boeing will provide supplies to help triple production capacity of PAC-3 missiles
Boeing's stock rallies again, after partnership with the Trump administration to boost missile defense capacity.
Boeing's stock was headed for another rally in early Wednesday trading, after the Defense Department announced a "partnership" with the aerospace and defense giant to boost the capacity of seekers for the U.S. missile defense system.
The agreement is part of the Pentagon's plan to triple the production capacity of seekers, which are produced by Boeing $(BA)$ and provide active measurement data used for the Patriot Advanced Capability-3, or PAC-3, Missile Segment Enhancement. The deal with the Pentagon supports the recently announced agreement with Lockheed Martin (LMT) to triple the output of the PAC-3 MSE.
While financial terms of the deal were not disclosed, the Pentagon said it was a "seven-year agreement."
"This agreement with Boeing is a direct reflection that speed, volume, and a resilient supply chain are paramount," said Michael Duffey, Under Secretary of War for Acquisition and Sustainment.
Boeing's stock surged 2% in premarket trading, enough to pace the Dow Jones Industrial Average's DJIA gainers ahead of the open. The rally extends the 5.2% bounce the stock saw on Tuesday, as hopes that the Iran conflict would end soon triggered a stock market rally.
Even with Tuesday's bounce, Boeing's stock still dropped 12.5% in March - the Iran conflict started on Feb. 28 - to suffer its biggest monthly decline since it lost 13% on April 30.
Also read: Why Honeywell's stock has dropped even as the Iran conflict has boosted munitions demand.
Boeing may be more known for building commercial airplanes, like the 737 MAX and 787 Dreamliner planes, but defense is a substantial part of the company's revenue.
For 2025, Boeing booked $27.23 billion in revenue for its defense, space and security business, which represented 30.4% of total revenue of $89.46 billion. Revenue from commercial airplanes was $41.49 billion.
Boeing's stock has fallen 8.3% in 2026, but had rallied 18.4% over the past 12 months. In comparison, the Dow has slipped 3.6% this year and gained 10.4% over the past 12 months.
-Tomi Kilgore
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April 01, 2026 08:41 ET (12:41 GMT)
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