ARLINGTON – The war with Iran is proving highly profitable for America’s largest defense contractors, with RTX, Northrop Grumman, and GE Aerospace all reporting sharp increases in weapons orders during the first quarter of 2026.
While the human toll of the conflict continues to rise, corporate earnings tell a different story: business is booming.
What the defense companies are reporting
- RTX (maker of Tomahawk and Patriot missiles) has invested nearly $900 million to expand production capacity. CEO Chris Calio said demand is “really, really strong, both domestically and internationally.”
- Northrop Grumman has added 20 new manufacturing facilities in the United States over the last two years. CEO Kathy Warden said: “Clearly the conflict with Iran has created a heightened sense of urgency.”
- GE Aerospace reported a 25 percent jump in revenues. CEO Larry Culp said he expects the Middle East war and its effects to persist through the summer.
The Pentagon’s role in the profit surge
The US Department of Defense has announced multiple new agreements to accelerate production of missiles, including Tomahawk, Patriot, and GEM-T systems.
RTX’s Raytheon unit previously announced five “landmark” Pentagon agreements that Calio described as “vitally important for national security.”
A $1.5 trillion request
Undersecretary of Defense Jules Hurst said President Trump’s fiscal 2027 budget requests $1.5 trillion – a 42 percent increase over previous spending.
Hurst described the request as a “generational investment in the United States military, the arsenal of freedom,” adding that it would “supercharge our defense industrial base” and support tens of thousands of businesses.
The contrast no one is mentioning
While defense contractors report record demand:
- Airlines are cutting flights due to fuel costs
- Paint, baby formula, and soap prices are rising
- The Pentagon is facing accusations of undercounting casualties
- A Navy secretary has resigned with no explanation
What comes next
Boeing reports earnings on Wednesday. Lockheed Martin follows on Thursday. Both are expected to announce similar gains.
The bottom line
Every missile fired, every ship deployed, every week the war continues – someone profits. It is not the passenger paying higher ticket prices. It is not the family buying more expensive baby formula. It is the defense industry, and its shareholders.
