The aerospace and defense sector is trading higher today, driven by a combination of positive sector-wide news and strong company-specific fundamentals. Recent agreements between Lockheed Martin and the Department of Defense are being viewed as a sign of an improving relationship between the government and the defense industry, potentially de-risking future contracts for major players. This comes alongside reports of increased global defense spending amid ongoing geopolitical tensions, providing a bullish backdrop for the sector. Furthermore, several companies within the industry have reported strong earnings and new contract wins.