The iShares U.S. Aerospace & Defense ETF (ITA) rose to $154.08, up 0.78% as of 9:42 AM ET on November 26th. The aerospace and defense sector is experiencing a boost, largely driven by Woodward's impressive financial performance. Woodward, a key player in defense parts and energy control systems, reported record results for 2024, with a 45% increase in earnings to $6.11 per share and a 14% rise in sales to $3.32 billion. The company's strong performance is attributed to increased commercial and defense OEM sales, as well as high aircraft utilization boosting aftermarket sales. Woodward's positive outlook for 2025, with expected aerospace revenue growth and margin expansion, further supports the sector's upward momentum.
Meanwhile, the sector is also reacting to Elon Musk's recent comments on social media, where he criticized the relevance of manned fighter jets like the F-35 in the age of drones. This has led to a dip in shares of major defense contractors such as Lockheed Martin, Northrop Grumman, and RTX. Despite Musk's remarks, defense experts maintain that manned jets and drones serve different roles, with jets fulfilling irreplaceable functions in long-range operations. The ongoing debate over the future of defense technology continues to influence market sentiment.