The U.S. State Department has authorized a potential Foreign Military Sale (FMS) to Bahrain for F-16 sustainment and associated equipment, valued at approximately $445 million, and a potential $1 billion military helicopter sale to Saudi Arabia.
Bahrain Jet & Defense Equipment Sale
The proposed sale covers aircraft components, missile containers, radar receiver parts, guidance and control section spares, weapons system support, ground handling equipment, as well as instruments and laboratory equipment. These items will be appended to a previously executed case.
The sale is expected to enhance Bahrain’s national security and foreign policy by strengthening its defense capabilities. The country is a significant non-NATO ally of the U.S. in the Middle East. General Electric Aerospace (NYSE: GE) and Lockheed Martin Aeronautics (NYSE: LMT) will be the primary contractors for the sale.
The Defense Security Cooperation Agency (DSCA) has notified Congress of the potential sale to the Government of Bahrain.
$1 Billion Helicopter Support Deal for Saudi
In another development, the U.S. State Department has authorized a potential $1 billion sale of military helicopter support and training to Saudi Arabia, the Pentagon announced Monday.
The proposed deal includes spare parts, repair components, and aviation training services for the Royal Saudi Land Forces Aviation Corps' helicopter fleet, according to separate Pentagon statements.
Middle East Boost For U.S. Defense Exports
This potential sale comes after Bahrain’s Crown Prince Salman bin Hamad Al Khalifa announced a $17 billion investment in the U.S. in July, spanning multiple sectors. The Kingdom of Bahrain also hailed the Comprehensive Security Integration and Prosperity Agreement (C-SIPA), which was later joined by the U.K. after an invitation extended by Bahrain and the U.S.
In November, the Trump administration finalized agreements with Saudi Arabia for about 300 tanks and approved a major defense sale package, including future F-35 deliveries, supporting U.S. defense exports.
Lockheed Martin, one of the primary contractors for the F-16 Sustainment sale, has been performing well. The defense contractor recently posted third-quarter 2025 results that beat Wall Street expectations and raised its full-year outlook. The company’s backlog hit a record $179 billion, reflecting sustained demand across key defense and aerospace programs.
Price Action: Lockheed Martin stock fell 8.93% on a year-to-date basis, per . On Monday, it fell 3.35% to close at $439.19.