Boeing Says Trump's Equity Plan Does Not Apply To Big US Defense Firms: Report
Boeing Co.'s (NYSE:BA) defense unit head Steve Parker reportedly said on Saturday that President Donald Trump’s plan to acquire government equity stakes in strategic sectors does not extend to major defense contractors.
Intended For Smaller Companies
According to a Reuters report, Parker, the CEO of Boeing Defense, Space & Security, stated that President Trump’s initiative to acquire government equity stakes in strategic sectors does not pertain to major defense contractors, referring to Boeing, Lockheed Martin Corp. (NYSE:LMT), RTX Corp. (NYSE:RTX), and Northrop Grumman Corp. (NYSE:NOC).
Parker clarified during the Reagan National Defense Forum in Simi Valley, California, that the government’s equity stake plan is intended for smaller companies within the supply chain.
"It really only applies on the supply chain, particularly for the smaller companies coming through where that might be a way forward for them. I don't think it really applies to the Primes," Parker said.
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Contrasting Lutnick's Older Comments
In August, U.S. Commerce Secretary Howard Lutnick mentioned the possibility of the Trump administration considering equity stakes in major defense firms, which had previously boosted their stock prices.
Parker pointed to Boeing’s significant investments in St. Louis, Missouri, where the defense contractor makes fighter jets.
Securing Supply Chains
The Trump administration’s strategy to secure domestic supply chains has led to government stakes in five major publicly traded companies, including Intel Corp. (NASDAQ:INTC) and MP Materials Corp. (NYSE:MP).
The government is also eyeing investments in critical minerals companies, essential for high-tech goods and defense systems.
Additionally, discussions are underway with U.S. quantum computing firms for potential government stakes in exchange for federal funding.
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