General Motors is in discussions to supply weapons components to Lockheed Martin, according to a Wall Street Journal report — a notable strategic shift that would mark GM's reentry into defense manufacturing decades after its prior involvement. GM's top line contracted 1.3% YoY to $185B with a thin 1.5% net margin and $3.27 diluted EPS, underscoring pressure on the core auto business that makes diversification into higher-margin defense work attractive.

For Lockheed, which posted 5.6% revenue growth to $75B on a 6.7% net margin, the move signals supply chain expansion amid elevated defense spending. The key watch is deal size and margin profile — defense contracts tend to carry more predictable cash flows than consumer auto, which could re-rate GM's multiple if volumes are material. LMT supply-chain risk from onboarding a non-traditional supplier is the offsetting concern.