First Read: General Motors Company "GM and defense" (Buy) Spak

Research evidence excerpt

First Read: General Motors Company "GM and defense" (Buy) Spak

Global Research

22 June 2026ab

First Read

EquitiesGeneral Motors Company

GM and defense United States

Automobile Manufacturers

12-month rating Buy

Today, when speaking to reporters President Trump said that GM has plants

“which they’re going to switch over. We’re going to build weapons, including the 12m price target US$102.00

Patriot, including the Tomahawk.”

By chance, we spoke to the company earlier today (prior to this news) to ask about Price (18 Jun 2026) US$79.29

defense, especially in light of last week’s GM Defense MOU with Lockheed Martin

RIC: GM.N BBG: GM US

and a Bloomberg article from last week that GM was holding talks with RTX,

L3Harris and other defense contractors. Trading data and key metrics

52-wk range US$86.38-48.13

The message we got from the company was that GM could be a components

player and play a supporting role to help defense manufacturers increase output of Market cap. US$71.5b

US munitions stockpiles, but not be a prime and not build items like missiles. The Shares o/s 902m (COM)

language in the Lockheed Martin MOU states the collaboration would focus Free float 99%

on "strengthening defense supply chains, advancing manufacturing and design Avg. daily volume ('000) 1,995

capabilities, and evaluating opportunities to expand production capacity through Avg. daily value (m) US$156.4

commercial manufacturing expertise and infrastructure. Initial efforts will include Common s/h equity (12/26E) US$59.7b

exploring ways to accelerate production readiness and apply proven commercial P/BV (12/26E) 1.2x

manufacturing approaches to support defense production requirements." GM Net debt to EBITDA (12/26E) NM

also told us specifically that MOU would not be on the vehicle side.