Defense: Foreign Military Sales June 2026

Research evidence excerpt

Defense: Foreign Military Sales June 2026

Truist Securities

Equity Research Report July 6, 2026

INDUSTRIALS: Aerospace and

Defense Defense: Foreign Military Sales June 2026

What's Incremental to Our View:

The Defense Security Cooperation Agency reported Foreign Military Sales (FMS)

Alexandra Mandery Approvals of $7.6B in June 2026, up 57% YOY, but down 48% seq'l. 2Q26 FMS

212-319-3461 Approvals totaled $34.7B, up 54% YOY from $22.5B. The administration has introduced

Alexandra.Mandery@truist.com the America First Arms Transfer Strategy that will focus on the sale of integrated air

and missile defense, long-range fires, drones and counter-drone systems. There are

discussions on introducing a sales catalog structure, but the restructuring is still ongoing. 4 Page Document

Foreign Military Sales (FMS) June Approvals: Reasons for this report June 2026 foreign military sales of $7.6B was up 57% YOY, but down 48% seq'l.

✓ Sector Read-Throughs There were fifteen FMS approvals in June. The largest approval in June was for a

✓ Foreign Military Sales (FMS) - Monthly $1.98B approval to Kuwait for Counter-Unmanned Aerial Systems. Additionally, there

Recap were two helicopter approvals for $1.5B each; one to New Zealand for MH-60R Multi-

Mission Helicopters and one to Austria for UH-60M Black Hawk Helicopters.

Relevant to Our Coverage Names:

BWX Technologies (BWXT, Hold), Karman Holdings (KRMN, Buy), Kratos Defense &

Security Solutions (KTOS, Buy), L3Harris Technologies (LHX, Buy), Leonardo DRS

(DRS, Buy), Mercury Systems (MRCY, Buy), Moog Inc. (MOGA, Buy), and Redwire

Corporation (RDW, Buy), York Space Systems (YSS, Hold).

Note: FMS Approvals as of June 30, 2026.

Source: Defense Security Cooperation Agency and Truist Securities

SEE PAGE 2 FOR REQUIRED DISCLOSURE INFORMATION