In 2023, U.S. military equipment to foreign countries increased by 16 to a record $238 billion (3,191.).S$8.2 billion), driven by countries seeking to replenish stockpiles destined for Ukraine and prepare for a major conflict.
These figures bolster expectations of strong sales from companies such as Lockheed Martin, General Dynamics and Northrop Grumman, whose share prices are expected amid heightened global instability**.
The U.S. said in a statement released on Monday (Jan. 29) that sales and transfers can be considered "an important U.S. foreign policy tool with potential long-term implications for regional and global security."
U.S. sales approved in 2023 include $10 billion worth of High Mobility Multiple Launch Rocket Systems (HIMARS) to Poland, $2.9 billion worth of AIM-120C-8 Advanced Intermediate-Range Air-to-Air Missiles (AMRAAM) to Germany**, and Ukraine** National Advanced Surface-to-Air Missile Systems (NASAMS).
Lockheed Martin and General Dynamics expect existing orders for hundreds of thousands of artillery pieces, hundreds of Patriot missiles*** and a surge in orders for armored vehicles to support their performance in the coming quarters.
There are two main ways for foreign countries to purchase from U.S. companies, one is to trade directly with arms companies, and the other is to negotiate defense at U.S. embassies abroad. Both must be approved by the United States**.
Direct arms sales by U.S. companies increased from $153.6 billion in fiscal 2022 to $157.5 billion in fiscal 2023; Arms sales arranged through the United States** increased from $51.9 billion to $80.9 billion.