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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
In a development boosting investor confidence in the defense sector, lobbying efforts to kill a proposed ban on some defense contractors buying back their own stock in the fiscal 2027 National Defense Authorization Act (NDAA) are heating up, according to reports. The push aims to remove a provision added by the Senate version, as the House of Representatives is expected to begin considering amendments this week.
The move comes as major defense contractors continue to rely on share buyback programs to boost shareholder returns, a practice that has helped support sector stock prices in recent years. Data indicates the defense sector has engaged in substantial buyback activity, attracting investors seeking capital returns.
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Sign InInvestors are watching developments in the House Rules Committee, where upcoming amendments will determine the fate of the ban. If the provision is removed, defense contractor stocks are likely to benefit, while retaining it could restrict companies' capital management flexibility. The outcome remains uncertain amid rising political pressures.