United States defense companies are reporting a surge in orders as the war involving Iran and broader Middle East tensions drive higher global demand for military equipment. After a strong 2025, major contractors expect another robust year in 2026, fueled by conflicts in Gaza and Ukraine, Russian airspace incursions in Europe, Chinese pressure toward Taiwan, and instability in the Red Sea.

RTX, Northrop Grumman, and GE Aerospace all posted increased first quarter orders, citing urgent needs to replenish munitions and strengthen air and missile defense systems. RTX said it is working with the Pentagon to accelerate missile production and has invested nearly $900 million to expand capacity, while describing recent defense agreements as vitally important for national security.

Northrop Grumman has opened 20 new manufacturing facilities across the United States over the past two years to speed deliveries, pointing to heightened urgency linked to the Iran conflict. GE Aerospace also reported strong defense performance, though reduced travel in the Middle East affected its commercial maintenance business.

The administration’s proposed $1.5 trillion defense budget for fiscal 2027 would mark a 42 percent increase, aiming to expand major weapons production, reinforce supply chains, and support tens of thousands of smaller businesses tied to the defense industrial base.