US arms sales to other countries hit record high

The new data bolsters expectations of strong sales from US companies such as Lockheed Martin, General Dynamics and Northrop Grumman, whose shares are expected to rise amid growing global uncertainty.

In a statement, the US State Department said arms sales and transfers are considered "important US foreign policy tools with potential long-term impacts on regional and global security".

Approved sales in 2023 include the $10 billion High Mobility Artillery Rocket System (HIMARS) to Poland, the $2.9 billion AIM-120C-8 Advanced Medium-Range Air-to-Air Missile (AMRAAM) to Germany, and the NASAMS missile system to Ukraine.

Lockheed Martin makes HIMARS and RTX, formerly Raytheon, makes AMRAAM. RTX and Norway's Kongsberg make NASAMS.

Lockheed Martin and General Dynamics expect existing orders for hundreds of thousands of artillery shells, hundreds of Patriot interceptor missiles and increased orders for armored vehicles to bolster their results in the coming quarters.

There are two main ways for foreign governments to buy weapons from US companies: negotiating directly with the company or contacting a defence official at a US embassy, ​​but both require US government approval.

Direct military sales by U.S. companies increased from $153.6 billion in fiscal 2022 to $157.5 billion in fiscal 2023, while sales arranged through the U.S. government increased from $51.9 billion in 2022 to $80.9 billion in 2023, according to Reuters.