The iShares U.S. Aerospace & Defense ETF (ITA) rose to $154.51, up 1.07% as of 10:32 AM ET on November 26th. The aerospace and defense sector is experiencing a boost, driven by Woodward's impressive financial performance and optimistic guidance. Woodward reported record earnings for 2024, with a 45% increase in earnings per share and a 14% rise in sales, surpassing analyst expectations. The company anticipates continued growth in aerospace revenue and margin expansion in 2025, fueled by strong commercial markets and increased defense activity. This positive outlook has led to a significant premarket rally in Woodward's stock, which is up 11.6%.
Meanwhile, Boeing's recent contract with the U.S. Air Force for 15 additional KC-46A Pegasus tankers, valued at $2.38 billion, underscores the ongoing demand for advanced military aircraft. The KC-46A's role in global air operations and its technological advancements, such as enhanced communication and connectivity systems, highlight its strategic importance. This contract further solidifies Boeing's position in the defense sector, contributing to the overall positive sentiment in the aerospace and defense markets.