Foreign military sales are becoming a hot new “adjacency” for U.S. military contractors as they look for new sources of growth to offset constrained Pentagon spending. In their quarterly earnings calls the week of Jan. 25, defense CEOs were full of enthusiasm about the potential of overseas sales to pump up flattening revenues and declining profit margins. Military consultant James McAleese says the largest U.S. defense contractors are now aiming to generate 25-35% of their sales from ...

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