On August 13, 2023, U.S. President Donald Trump signed an executive order aimed at accelerating the U.S. commercial space industry by reducing environmental review timelines, streamlining launch and spaceport permits, and expediting approvals for new missions. This regulatory change is expected to benefit Lockheed Martin Corp. (LMT), a major player in the space sector, including its roles as a prime contractor for NASA’s Orion spacecraft and its collaboration with Boeing on the United Launch Alliance (ULA).
The order notably mandates expedited environmental reviews and reforms safety rules for advanced flight termination systems, which could facilitate the ULA’s Vulcan Centaur rocket launch. As a result, Lockheed’s commercialization efforts for Orion, focusing on reusability and flexible missions, align well with the order’s objectives to enhance the efficiency and cost-effectiveness of space operations.
Other companies poised to benefit from the executive order include Boeing (BA) and L3Harris Technologies (LHX), both actively involved in notable NASA missions, such as the Space Launch System. In light of recent market performance, Lockheed’s shares have declined 9% this year, significantly trailing the industry average growth of 26.9%.
