Golden Dome: the new space shield redefining global securityBy Ion Jauregui – Analyst, ActivTrades
In the full-throttle race for orbital supremacy, the U.S. government has unveiled its ambitious “Golden Dome” plan, a next-generation missile-defense system that builds on the newly established Space Force. With an estimated budget of USD 175 billion and an operational target date of 2029, the project aims to detect and neutralize threats using space-based interceptors and a network of sensors and communications capable of near-real-time alerts.
A rebooted heir to Reagan’s “Star Wars”
In the 1980s, Ronald Reagan launched the Strategic Defense Initiative—widely dubbed “Star Wars”—to shoot down enemy missiles in mid-flight. That effort collapsed under technological constraints and fears of uncontrolled proliferation. Today, however, evolving strategic challenges have revived the need for a deep-layered defense before a long-range weapon can threaten national security.
Threats without borders or predictable trajectories
The danger spectrum has expanded: from Russian satellites carrying offensive payloads to Chinese nuclear-capable hypersonic glide vehicles. Added to that are coordinated swarms of drones and erratic missiles—like the one Iran launched at Israel in April 2024. “By 2050, we should expect ultra-precise threats launched from any domain, including space,” warned Frank Kendall, former Secretary of the Air Force, in a December report. “There will be no sanctuary. Space will be recognized as the decisive domain for almost all military operations.”
L3Harris and Lockheed Martin front and center
Defense giants are already lining up. L3Harris Technologies (LHX) will supply next-generation satellite communications and infrared sensors, while Lockheed Martin (LMT) will refine space-based interceptors and ground integration. Both predict Golden Dome will generate billions in revenue for over a decade, with the technology potentially exportable—under strict controls—to allied nations keen to bolster their defenses.
Lockheed Martin: fundamentals under the spotlight
In fiscal 2024, Lockheed Martin smashed its own sales record, reaching USD 71,043 million versus USD 67,571 million in 2023. Yet net profit dipped from USD 6,920 million in 2023 to USD 5,336 million in 2024, weighed down by higher R&D costs and accelerated space-program spending on Golden Dome. The momentum continues into 2025, with Q1 sales of USD 18,000 million (+4 % YoY) and net earnings of USD 1,712 million, although margins have stalled slightly amid heavy investment in orbital infrastructure and interceptor satellites. On the markets, LMT closed at USD 475.82 on May 20, 2025—2.5 % below its USD 485.94 year-open high—after swinging between lows near USD 419 and highs above USD 509, reflecting investor jitters over Golden Dome’s costs and new Space Force contracts.
A security gap and the future of treaties
Deploying an orbital shield poses vast diplomatic challenges. The ability to intercept missiles in their boost phase would undermine the doctrine of mutual assured destruction and accelerate obsolescence of the 1967 Outer Space Treaty, which bans weapons of mass destruction in orbit. Several nations, notably Russia and China, have already voiced objections and warned they may respond by expanding their own counter-space arsenals.
Toward a new arms race?
As the West grapples with these questions, Golden Dome looms as a prime catalyst for a potential space arms race. Beyond tangible gains in homeland defense, the real test will be balancing deterrence without triggering a tit-for-tat cycle that leads to irreversible militarization of Earth’s orbit.
Conclusion
Golden Dome is more than a technological evolution of an ’80s dream—it is America’s bet to retain strategic advantage in the final frontier. With L3Harris and Lockheed Martin at the vanguard and an international stage fraught with recriminations, the project will shape global security and space law for years to come. As development advances, the world community must decide whether a defensive shield can coexist with orbital peace or, conversely, usher in an unprecedented era of tension.
*******************************************************************************************
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk.
