Anyone will tell you that this is the most important election in American history, unless they happen to run a large American defense company. During the earnings conference call, defense industry executives are expected to calm down before Tuesday's election, mainly because they believe the coronavirus pandemic brings greater uncertainty (especially for commercial airlines). Although the White House has made a unified commitment to the 2021 defense budget, another important reason is the White House's control over the defense budget. During the third quarter earnings conference call last week, Kathy Warden, CEO of Northrop Grumman, stated, "We still believe that bipartisan support for defense spending will continue, and our investment portfolio will work well to support our defense strategy. Although we have planned various budget options, defense spending is largely driven by threats, and today's threat environment requires strong defense. Emerging threats are intensifying, and we believe both parties are committed to effectively countering these threats

Byron Callan, an aerospace and defense analyst at Capital Alpha Partners, said that if defense companies are optimistic, Wall Street seems to be skeptical as well. Pure military defense companies have seen a decline in performance this year and the stock market is lagging behind. He pointed out that the partisan deadlock has led to the budget ceiling that has plagued the federal budget over the past decade. You can say that part of the reason for this poor performance is concerns about the election results. Karen said, "Even if the president wins, no one predicts that the House of Representatives will flip over, and then Congress will still be deadlocked. For example, there is a 50:50 split in the Senate. Things will become very dynamic, "said Michael Herson, President and CEO of American Defense International, a defense lobbying company. Despite speculation that the Democratic Party will cut defense spending, former Vice President Joe Biden, who competes with Republican President Trump, will face pressure not for economic and political reasons. Hessen said in an interview, "Biden's first concern is Covid-19 and economic recovery. So, do you really want to touch on defense spending in your first year as president and exacerbate economic difficulties by increasing unemployment? " Defense Secretary Mark Esper warned that a flat budget would force the military to make trade-offs in the budget and may cut legacy projects. But the Pentagon has also conveyed a commitment to modernization, which is also part of the industry's confidence. In September of this year, Northrop won a $13.3 billion Ground Strategic Deterrence Program award, which is an effort by the US Air Force to replace the LGM-30G Minuteman III intercontinental ballistic missile. But some Democrats attempted to overturn the plan, and investors asked executives about the plan's survival prospects after the election, as well as the prospects for Northrop's B-21 attackers.

When asked, L3Harris downplayed how withdrawing troops from Afghanistan (which both Trump and Biden support) or hypothetical military cuts would affect sales of radios or night vision goggles. We don't even have 40% of people modernizing through radio. Therefore, even if the terminal strength decreases, as I expected, I don't think it will affect the growth rate of our radio business, "said CEO Bill Brown, who believes that night vision goggles and receivers have" insufficient penetration. "He added," Therefore, if there is any impact, the decrease in terminal strength may free up some funds for modernization investments, which will actually affect most of our business. The executives of companies without shares on a specific major platform have a great story to tell, with several executives mentioning investments in cybersecurity or artificial intelligence. Lynn from LeonardoDRS said that the company's investments in communication, sensors, and computing systems enable it to "take a dual approach" and "we can move in any direction, " he said. Larger companies have greater exposure in defense budgets. We are more focused on target areas and have not yet received widespread exposure. We are in the fields of Army current sensors and satellite communications; we are divided into 10 or 12 parts. We can be targeted and frankly say that the ability to achieve goals is crucial for growth in an environment with unchanged budgets. "When the CEO of Northrop is under greater budget pressure, the CEO of Northrop believes that in a situation of greater budget pressure, the CEO of Northrop will become a priority consideration.