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Industrials
Union Pacific, Norfolk Southern seek merger approval
Union Pacific and Norfolk Southern have offered to divest stakes in several jointly owned rail infrastructure companies as part of their planned US$85 billion (A$123 billion) merger. The companies said on Tuesday they had submitted the first portion of responses to the United States Surface Transportation Board’s (STB) request for additional information on their merger application. The deal under which Union Pacific would buy Norfolk Southern in a cash-and-stock merger would create the ‌first U.S. coast-to-coast freight rail operator. The filing addressed concerns about the Terminal Railroad Association of St. Louis (TRRA), Kansas City Terminal Railway (KCT) and TTX Company, which are jointly owned with other major railroads but operate under independent management teams and non-discrimination policies. Union Pacific and Norfolk Southern said they did not control the companies currently and would not control them after the merger, but the STB could require divestitures as a further safeguard. The companies said the combined network could shift more freight from roads to rail, reducing congestion and lowering emissions. "Connecting Union Pacific and Norfolk Southern’s end-to-end networks will finally give American
Industrials
Lockheed Martin to buy Ultra Maritime for US$3.45bn
Lockheed Martin Corp has agreed to acquire naval defence company Ultra Maritime for US$3.45 billion (A$4.95 billion) to bolster its ‌portfolio as global demand for military technology surges. The aerospace and defence contractor said the acquisition would expand its maritime defence portfolio by adding Ultra Maritime’s expertise in sonar systems, acoustic sensing, radar technologies, torpedo defence and underwater surveillance. This comes at a time when governments are increasing spending on maritime security and advanced military technology. Under the deal Ultra Maritime becomes part of Lockheed Martin’s Rotary and Mission Systems business, which provides naval systems, sensors and advanced defence technologies to the United States and allied militaries. “Undersea superiority belongs to those who move fastest and work together best,” Lockheed Martin Rotary and Mission Systems President Stephanie Hill said in a news release. “By joining forces with Ultra, we’re accelerating our commitment to deliver the most advanced undersea and anti-submarine warfare capabilities to our U.S. and allied partners across the globe.” The announcement was made by Ultra Maritime, which is owned by private equity firm Advent Internati
Industrials
FedEx shares sink as it fails to deliver on margins
FedEx Corp shares fell in after-hours deals on Tuesday (Wednesday AEST) due to concerns about lower margins and despite the global delivery company surpassing profit estimates in the fourth quarter of the 2026 financial year (Q4 FY26) and forecasting 11% revenue growth. FedEx said net income fell 3% to US$1.60 billion (A$3.03 billion) and diluted earnings per share (EPS) dropped 4% to $6.60 on revenue, which grew 13% to $25 billion in the quarter ending 31 May 2026. Although adjusted Q4 EPS of $6.31 was higher than analysts' average estimates of $5.96, margins at its core Federal Express segment fell to ‌7.7% ⁠from 8.4% as the cost of employees, outsourced transportation and fuel climbed.Source: FedExFor the full year, FedEx said net income rose 8% to $4.43 billion, and diluted EPS jumped 10% to $18.55 on revenue which grew 8% to $94.7. It also forecast revenue growth of 11% in the 2026 calendar year, with the new time period reflecting the decision to change the fiscal year end from 31 May 31 to 31 December effective for the period beginning 1 June. The stock (NYSE: FDX) closed $11.54 (3.51%) lower at $317.24 on Tuesday (Wednesday AEST), capitalising the company at $75.70 billion, before the results were announced.
Industrials
Caterpillar beats, lifts guidance with data centre demand
Construction equipment company Caterpillar beat revenue and earnings estimates last quarter, and has lifted its guidance due to lower expected tariff costs and strong data centre demand. Earnings per share were US$5.54, up from $4.25 one year ago and above Zacks consensus estimates of $4.55. Revenue increased 22% to $17.42 billion, surpassing estimates by 5.95%. “Our team delivered a strong start to the year, driven by resilient end markets and disciplined execution in a dynamic operating environment,” said Caterpillar Chairman and CEO Joe Creed. “Solid sales and revenues growth, combined with robust order activity, demonstrate the strength of our business and our focus on solving our customers’ toughest challenges. A record backlog provides a strong foundation for continued positive momentum.” Construction Industries revenue posted the largest percentage increase, rising 38% to $7.16 billion. Power and Energy revenue also rose 22% to $7.03 billion, driven in part by demand for generator sets and turbines used in data centres. Operating profit grew 20% to $2.58 billion, which the company credited to higher sales volume and favourable price realisation. The company’s order backlog was a record $62.7 billion last q
Industrials
UPS beats Q1 estimates, shares fall 4%
United Parcel Service (NYSE: UPS) reported first-quarter earnings that exceeded expectations on both the top and bottom lines. However, shares fell around 4% following the release as investors focused on declining revenue and cautious forward guidance. The logistics group posted adjusted earnings per share of $1.07, ahead of forecasts of $1.01, while revenue came in at $21.2 billion, slightly above expectations of $20.98 billion. For the quarter ended 31 March, UPS reported net income of $864 million, or $1.02 per share, down from $1.19 billion, or $1.40 per share, in the same period a year earlier. After adjusting for one-off items, profit totalled $906 million, or $1.07 per share. Revenue declined to $21.2 billion from $21.5 billion a year ago.Credit: United Parcel Service“The first quarter of 2026 marked a critical transition period for UPS in which we needed to flawlessly execute several major strategic actions and we delivered,” CEO Carol Tomé said in the earnings release. “With that behind us, we expect to return to consolidated revenue and operating profit growth, and adjusted operating margin expansion in the second quarter of this year.” Despite the earnings beat, the company maintained a cautious stance on

Industrials
Lockheed Martin misses estimates, aeronautics sales fall
Lockheed Martin missed revenue and earnings estimates last quarter as aeronautics sales dipped, despite new contracts with the United States government. Net sales rose 0.3% year-over-year to US$18.02 billion, below the Zacks consensus estimate of $18.12 billion. Earnings per share increased 11.5% to $6.44, under estimates of $6.67. “Lockheed Martin's superior capabilities in delivering advanced defense technology and systems and in space exploration have been proven again and again in 2026,” said chair, president, and CEO Jim Taiclet. “Our Orion spacecraft safely carried the crew farther from Earth than ever before during NASA's historic Artemis II mission, concluding with a precisely executed re-entry and splashdown. Our superior fifth generation fighter jets, the F-35 and F-22, continue to operate with great effectiveness in contested and difficult missions.” Aeronautics sales were $6.95 billion, down from $7.06 billion one year ago, which Lockheed Martin credited to lower sales in classified programs and of F-16 aircraft. Rotary and Mission Systems sales also fell from $4.33 billion to $3.99 billion. Missiles and Fire Control sales rose from $3.37 billion to $3.65 billion, while Space sales climbed from $3.21 bil
Industrials
GE Aerospace orders soar, cuts departure forecast
GE Aerospace surpassed revenue and earnings estimates last quarter as orders soared, though it lowered its departures outlook due to the Iran war. Earnings per share increased 25% year-over-year to US$1.86, surpassing Zacks consensus estimates of $1.61. Revenue rose 29% to $11.61 billion, beating estimates by 9.13%. “GE Aerospace had a strong first quarter with orders growing 87% and revenue up 29%, supporting double-digit growth in earnings and free cash flow,” said chair and CEO Larry Culp. “Our young and diverse fleet coupled with a $170 billion commercial services backlog positions us well to navigate the current operating environment.” The surge in orders included agreements to provide LEAP-1A engines to American Airlines and GEnx engines to United Airlines and Delta Air Lines. Its total backlog is more than $210 billion, the company said, up from $190 billion at the end of 2025’s fourth quarter. Overall operating profit was up 18% to $2.5 billion, with both major segments reporting double-digit percentage growth. GE Aerospace has reduced its full-year departures guidance, forecasting a low double-digit decline for Middle Eastern departures amid the Iran war. It expects flat to low single-digit departure
Industrials
Amazon saves USPS with new package delivery deal
Amazon.com has reportedly struck a deal with U.S. Postal Service (USPS) that helps alleviate the United States government’s mail service’s financial difficulties. USPS will preserve 80% of its package delivery business with the global technology giant, which is worth US$6 billion (A$8.7 billion) in annual revenue, according to Reuters. The 20% reduction in volumes is significantly lower than the two-thirds cut initially feared, the news organisation reported in this article. Reuters first reported on the deal, but other news organisations subsequently wrote about it, including the Wall Street Journal in this story and Barrons in this article. USPS has been under increasing financial pressure, issuing a warning in March that it could run out of cash by October. Amazon has been broadening its logistics network, including its ‘last-mile’ delivery capacity and is considering moving to other carriers, but is not considered likely to replicate USPS’s extensive reach, particularly in rural areas. In a statement, the company said it was “pleased” to reach a deal that would extend the longstanding partnership, while USPS did not immediately comment, according to Reuters. Amazon has previously criticised USPS plans to o
Industrials
Trump introduces new measures to help farmers
United States President Donald Trump announced new measures to support U.S. farmers. This comes as farmers have been left reeling from the administration’s trade policies and the Iran war. One of the measures suggested by Trump was that farm equipment makers cut prices. "I want John Deere and Case and all of - they're great companies, Caterpillar... I want these companies to give it to you in the form of lower tractor and equipment costs," Trump said. This sent companies' stocks tumbling. At the time of writing, Deere & Co (DE: NYSE) stock was down 2.50% to US$566.64. Caterpillar (CAT: NYSE) stock is also down 1.11% to $695.40. Trump called for lower prices in an aside during a speech that otherwise focused on shoring up support among the Republican president's loyal constituency of rural voters, who have backed Trump in all three of the last presidential races. U.S. crop producers are facing tight margins, high production costs and low commodity prices for the fourth straight year, despite near-record government payments. The Trump administration has promised to distribute $12 billion in aid to U.S. farmers. This is a move that farm trade groups and agricultural economists have said is helpful in t