Gabelli Likes Lockheed, RTX, Boeing — and a Small Supplier You’ve Never Heard Of

1 hour ago 1

Jeremy Phillips

Thu, March 5, 2026 astatine 7:32 AM CST 4 min read

Lockheed (LMT) is up 38% with a $194B backlog. RTX (RTX) is up 65% with a $268B backlog. Boeing (BA) holds a $682B backlog. Albany International (AIN) is up 16%, trading astatine $59.
Contract assurance from the Department of Defense is triggering a multi-year capex question crossed the rocket proviso chain, benefiting some large primes and smaller suppliers similar Albany International.
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Mario Gabelli is looking astatine the defence assemblage and seeing a multi-year, capital-intensive buildout crossed the full rocket proviso chain. He's not conscionable buying the evident names.

"Anyone that's producing rocket rocket engines, seeker heads — Lockheed, RTX, Raytheon, Boeing each marque the benignant of the main parts of the missile. But there's different parts for it arsenic well, similar the casings, the chemoreceptor cones, each that. And we person a tiny institution called Albany International. It's a tiny aerospace and defence supplier. And they marque these components connected these weapons systems. There's going to beryllium a immense capex physique for these primes, and we're going to spot that successful their numbers."

Defense primes person 1 customer, the Department of Defense, and they request declaration assurance earlier committing to monolithic superior expansion. That assurance is present arriving, and the capex question is coming.

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Lockheed Martin (NYSE:LMT) is the clearest impervious point. The institution posted a $194 cardinal grounds backlog astatine year-end 2025, with F-35 deliveries jumping to 191 successful 2025 from 110 successful 2024. Its Missiles and Fire Control conception swung from a $804 cardinal operating nonaccomplishment successful Q4 2024 to a $535 cardinal nett successful Q4 2025. CEO Jim Taiclet called retired "unprecedented demand" and guided 2026 gross to $77.5 to $80 billion. The banal is up 38% year-to-date and trades astatine 22x guardant earnings, with a $194 cardinal backlog providing multi-year gross visibility.

RTX (NYSE:RTX) is arsenic compelling. Its grounds $268 cardinal backlog includes $107 cardinal successful defense. Pratt & Whitney subject revenues grew 30% successful Q4 connected F135 production. CEO Chris Calio said "We participate 2026 with large momentum." RTX is up 65% implicit the past year.

Boeing (NYSE:BA) is the betterment communicative of the group. Still burning currency with a antagonistic operating margin, it carries a $682 cardinal full backlog and is ramping the 737 backmost toward 42 per month. It's a longer-duration stake connected operational normalization.

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