The United States’ largest defense companies have agreed to “quadruple production” of “superior class” weapons, President Donald Trump said after a meeting at the White House.
Friday’s meeting was attended by the chief executives of RTX (formerly Raytheon), Lockheed Martin, Boeing, Northrop Grumman, BAE Systems, L3 Harris Missile Solutions and Honeywell Aerospace, all of which are sitting on billions of dollars in order backlogs, some of which dwarf domestic products (GDP).
The US is already the world’s largest military spender at nearly $1 trillion in 2025, surpassing the combined totals of the next nine countries. Trump aims to increase this amount to $1.5 trillion by 2027.
The US has already spent billions of dollars on weapons in its war with Iran, making war a highly lucrative business for defense contractors.
Last week, stock prices of major arms-producing companies in the US all rose, including Northrop Grumman (up 5 percent), RTX (up 4.5 percent) and Lockheed Martin (up 3 percent).
So what weapons are being used in the war in Iran, and which defense contractors are profiting from this rapidly escalating conflict?
What weapons is the US using against Iran?
According to the US military’s Central Command (CENTCOM), Operation Epic Fury involves more than 20 different weapons systems across air, sea, land and missile defense forces.
Missiles, Munitions and Missile Systems
The Tomahawk missile has been the Pentagon’s long-range strike weapon for three decades. The missiles travel at subsonic speeds, hugging terrain at low altitudes to avoid radar detection. They were fired by early Burke-class destroyers in the Arabian Sea, each destroyer capable of carrying 90 Tomahawks.
For the first time, the US launched a precision strike missile (PrSM) against Iranian targets from M-142 HIMARS systems in desert terrain. The short-range ballistic missile is capable of hitting targets up to 4002km (250 miles) away.
On the defensive side, Patriot missile batteries and Terminal High Altitude Area Defense (THAAD) systems are positioned to intercept Iranian retaliatory strikes, while Patriots deal with short-range cruise missiles and low-altitude threats, while THAAD intercepts ballistic missiles at terminal altitudes.
Drones
The offensive on Iran saw the debut of the low-cost Uncrewed Combat Attack System (LUCAS), a one-way attack drone built by Specreworks and modeled after Iran’s own Shahed drone. At $35,000 per unit, the LUCAS represents a deliberate pivot toward cheaper, more expendable munitions. It also costs less than the MQ-9 Reaper drone, which has been deployed and costs up to $40m to manufacture each aircraft. Iran’s Islamic Revolutionary Guard Corps said it shot down the Reaper on March 1.
strike demonstration
US B-1 bombers, B-2 stealth bombers, F-15 fighter jets, F-22 Raptor jets and F-35 Lightning II stealth fighters use 900kg (2,000lb) bombs to hit underground bunkers to destroy Iran’s ballistic missile facilities and Tehran’s stockpiles. using
Reconnaissance
According to local news sources, EA-18G Growler electronic warfare jets have been spotted on the USS Abraham Lincoln aircraft carrier stationed in the Arabian Sea. The aircraft is used to jam enemy radar, communications and missile guidance systems. The P-8A Poseidon aircraft is being deployed to carry out surveillance and reconnaissance at sea and on land, and according to flight path information, was detected circling the Strait of Hormuz.
Last month, the US Air Force deployed the E-3 Sentry AWACS radar aircraft to the Middle East, providing real-time battlefield awareness. Joint variants of the US Air Force RC-135 spy planes Cobra Ball and Rivet are flying intelligence-gathering missions from bases in Qatar and the United Arab Emirates, monitoring Iranian missile launches, radar systems and communications.
Naval assets
The USS Abraham Lincoln and USS Gerald R Ford aircraft carriers anchor the US Navy’s presence in the Arabian Sea and Mediterranean respectively, while a fleet of Arleigh Burke-class guided-missile destroyers with their Aegis systems provide offensive firepower and missile defense.
Who made weapons against Iran?
- Boeing B-1 bomber, F-15s, EA-18G Growlers, P-8A Poseidon and RC-135 with modifications provided by L3Harris Technologies.
- Northrop Grumman The B-2 makes stealth bombers and the E-3 Sentry provides radar technology for AWACS.
- Lockheed Martin Manufactures F-35 Lightning II stealth fighters, F-22 Raptor jets, THAAD systems, M142 HIMARS, MGM-140 ATACMS missiles and PrSM.
- Raytheon division of RTX The corporation makes Tomahawk missiles and MIM-104 Patriot missile systems.
- Spectreworks LUCAS produces unidirectional attack drones.
- General Atomics Aeronautical Produces MQ-9 Reaper drones.
- Huntington Ingalls Industries Built USS Abraham Lincoln and USS Gerald R. Ford.
What are the largest military companies in the world?
According to the Stockholm International Peace Research Institute (SIPRI), in 2024, the world’s top 100 defense companies will generate revenues of $679bn.
US firms dominate with nearly half ($334bn) in revenue, followed by China ($88bn), the United Kingdom ($52bn), Russia ($31bn) and France ($26bn).
European heavyweights such as the UK’s BAE Systems, Italy’s Leonardo, Trans-European Airbus, France’s Thales and Germany’s Rheinmetall all occupy positions in the top 20 companies growing as the backbone of the Russia-Ukraine conflict.
The table below breaks down the top 100 arms-producing companies worldwide.
What are the largest defense contractors in the US?
According to SIPRI’s report, 39 US contractors are on its list of top 100 defense companies, dwarfing eight groups from China, which has the second-highest number of contractors appearing in the top 100.
The top five US defense companies are:
- Lockheed Martin: The world’s largest defense contractor was created in 1995 through the merger of Lockheed and Martin Marietta. In 2024, it generated revenues of $68.4bn. It has contracts with the US government to manufacture aircraft such as the F-35, missiles and space systems. Its Defense Department contracts are worth tens of billions of dollars. This year, the company signed an agreement with the US government to accelerate production of the PAC-3 missile segment enhancement for air defense missiles.
- RTX: It was formed in 2020 after the merger between Raytheon and United Technologies. The three main divisions of the business are focused on producing missile systems, jet engines and avionics for the US military and commercial airlines. In 2024, $43.6bn of the company’s revenue came from defense.
- Northrop Grumman: The contractor was formed after the acquisition of Northrop Grumman in 1994. The company generates revenue from the manufacture of stealth aircraft such as the B-21 Raider, space systems and nuclear modernization programs for the US Air Force and the government. In 2024, $37.9bn of its revenue came from defence.
- General dynamics: It develops nuclear submarines, battle tanks, armored vehicles and the Gulfstream business jet. In 2024, $33.6bn of its revenue came from defence.
- The Boeing Company: The aircraft manufacturer was established in 1916. Much of its revenue comes from the production of commercial aircraft, defense programs, and space systems such as its F/A-18E/F Super Hornet, AH-64 Apache and Chinook helicopters, and the P-8 Poseidon. In 2024, $30.6bn of its revenue came from defence.
What are Israel’s largest defense contractors?
According to SIPRI’s report, three Israeli contractors are among its top 100 defense companies. The Israeli defense industry is experiencing a surge in exports with more advanced military technology at the helm.
- Elbit Systems: Israel’s largest defense company specializing in drones, surveillance systems, battlefield electronics and military optics. In 2024, $6.3bn of its revenue came from defence.
- Israel Aerospace Industries: A state-owned defense and aerospace company specializing in missile defense systems, satellites, combat drones and radar technology. In 2024, $5.2bn of its revenue came from defence.
- Raphael: The company is state-owned and behind Israel’s much-lauded Iron Dome missile defense system. It also provides precision-guided munitions. In 2024, $4.7bn of its revenue came from defence.
US defense stocks have risen in recent years
According to SIPRI, global defense spending will rise 9.4 percent to $2.7 trillion in 2024. In addition, NATO members have pledged to increase their annual defense budgets from 2 percent to 5 percent of their GDP by 2035, adding hundreds of billions of dollars in annual spending.
To replenish rapidly dwindling stockpiles of munitions used in wars in Ukraine and the Middle East, major arms contractors are investing billions in new orders, responding to increased demand and raising their stock prices.
The chart below shows the increase in stock prices of the largest US defense contractors from March 2023 to March 2026. RTX saw the biggest rise of 110 percent, followed by Northrop Grumman at 60 percent, General Dynamics at 57 percent, Lockheed Martin at 37 percent and Boeing at 5 percent.
(tags to translate)Economy
