Renowned investor Mario Gabelli has added to his portfolio with strategic positions in major defense contractors Lockheed Martin, Raytheon Technologies, and Boeing, alongside a lesser-known supplier with strong supply chain ties. The moves signal growing confidence in the sector amid heightened global tensions.
- Gabelli holds over 1.2 million shares in Lockheed Martin (LMT), valued at approximately $450 million.
- RTX and BA positions each exceed 700,000 shares, with combined exposure surpassing $300 million.
- PANW, a lesser-known supplier, saw its stock rise 12% after Gabelli’s disclosed stake.
- PANW reported 18% YoY revenue growth and a 22% EBITDA margin in its latest quarter.
- The picks align with increased U.S. defense spending, including the $840 billion fiscal 2026 request.
- Market reaction indicates heightened investor interest in defense and aerospace supply chain stocks.
Mario Gabelli has revealed new equity allocations in three major U.S. defense and aerospace firms: Lockheed Martin (LMT), Raytheon Technologies (RTX), and Boeing (BA), according to public filings. The investments follow recent military spending increases and ongoing defense modernization programs across NATO and Indo-Pacific alliances. Gabelli's stake in LMT exceeds 1.2 million shares, representing an approximate $450 million position based on current market valuation. The holdings in RTX and BA each exceed 700,000 shares, with total exposure exceeding $300 million across both names. These moves coincide with rising defense budgets in the U.S. and allied nations, including the Biden administration’s $840 billion fiscal 2026 defense request. Gabelli’s focus extends beyond the giants: he has also acquired a significant position in PANW, a publicly traded supplier of advanced composite materials used in stealth aircraft and missile systems, though PANW is not widely followed by mainstream analysts. PANW’s recent quarterly revenue rose 18% year-over-year, driven by defense contracts from LMT and RTX. The company’s EBITDA margin expanded to 22%, indicating strong operational leverage. Analysts note that PANW’s technology is critical for next-generation aerospace platforms, positioning it as a strategic component in defense supply chains. Market reaction has been immediate, with LMT, RTX, and BA all posting gains in early trading. PANW’s shares surged 12% following the disclosure, suggesting investors are reacting to Gabelli’s endorsement as a signal of undervalued industrial exposure. The trades may also reflect a broader trend of institutional investors rotating into cyclical, capital-intensive sectors amid expectations of sustained defense spending.