Like a cruise missile veering off course, shares of aerospace and defense giant Lockheed Martin (NYSE: LMT) have fizzled rather than soared in 2025. Muted profit guidance and market concerns toward the Trump administration's defense spending policies have emerged as recent headwinds for the stock,

Shares of Lockheed Martin Corp. LMT shed 1.57% to $461.50 Wednesday, on what proved to be an all-around mixed trading session for the stock market, with the S&P 500 Index SPX rising 0.49% to 5,599.30 and the Dow Jones Industrial Average DJIA falling 0.20% to 41,350.93.

Defense stocks took a tumble heading into 2025 as President Trump returned to the White House for his second term. Trump has stated his intent as a peacemaker to bring the wars in Ukraine and Israel to a halt.

Europe isn't on board with this strategy, however, and last Tuesday, European Commission President Ursula von der Leyen announced plans for an 800 billion euro ($841 billion) "REARM Europe" program. The funds will be used to bolster the militaries of Europe's 27 member countries, as well as to "massively step up their support to Ukraine."

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