America’s largest defense companies agreed after a White House meeting to “quadruple production” of what President Donald Trump described as a “level of sophistication” weapon.
Friday’s meeting featured top executives from RTX (formerly Raytheon), Lockheed Martin, Boeing, Northrop Grumman, BAE Systems, L3Harris Missile Solutions and Honeywell Aerospace, all of which have multibillion-dollar order backlogs, some of which dwarf the gross domestic product (GDP) of several countries.
The United States is already the world’s largest military spender, reaching nearly $1 trillion in 2025, exceeding the combined military spending of the next nine countries. President Trump aims to increase this amount to $1.5 trillion by 2027.
The United States has already spent billions of dollars on weapons in its war with Iran, making the war a lucrative business for defense companies.
Last week, stock prices of major U.S. weapons producers, including Northrop Grumman (up 5%), RTX (up 4.5%), and Lockheed Martin (up 3%), all rose.
So what weapons are being used in the Iran war, and which defense companies are profiting from the rapidly escalating conflict?
What weapons is the United States using against Iran?
According to the U.S. military’s Central Command (CENTCOM), Operation Epic Fury utilized 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 of choice for 30 years. The missile travels at subsonic speeds, hugging terrain at low altitudes to avoid radar detection. The missiles were launched from Arleigh Burke-class destroyers in the Arabian Sea, each of which can carry more than 90 Tomahawks.
The United States also launched its first Precision Strike Missile (PrSM) against Iranian targets using the M-142 HIMARS system over desert terrain. Short-range ballistic missiles can hit targets 4,002 km (250 miles) away.
On the defensive side, Patriot missile batteries and the THAAD system are deployed to intercept Iranian retaliatory strikes using Patriot, which deals with short-range cruise missiles and low-altitude threats, while THAAD intercepts ballistic missiles at higher altitudes during the final stage of their descent.
drone
The strike against Iran saw the debut of the LUCAS (Low Cost Unmanned Combat Attack System), a one-way attack drone built by SpekreWorks and modeled after Iran’s own Shahed drone. At $35,000 per unit, LUCAS represents a deliberate shift toward cheaper, more expendable munitions. These drones cost significantly less than the already deployed MQ-9 Reaper drones, which can cost up to $40 million to manufacture per aircraft. Iran’s Islamic Revolutionary Guard Corps announced that it shot down the Reaper on March 1.
strike performance
The United States is using B-1 bombers, B-2 stealth bombers, F-15 fighters, F-22 Raptor jets, and F-35 Lightning II stealth fighters to attack Iranian ballistic missile facilities and underground bunkers, and is using 900 kg (2,000 pound) bombs to destroy Tehran’s stockpiles.
reconnaissance
According to local news sources, an EA-18G Growler electronic warfare jet was spotted aboard the USS Abraham Lincoln aircraft carrier deployed in the Arabian Sea. The aircraft is used to jam enemy radar, communications and missile guidance systems. According to flight path data, P-8A Poseidon aircraft are also being deployed to perform surveillance and reconnaissance missions across sea and land, and were detected circling around the Strait of Hormuz.
Last month, the U.S. Air Force deployed the E-3 Sentry AWACS radar aircraft to the Middle East, which provides real-time battlefield awareness. U.S. Air Force RC-135 reconnaissance aircraft, such as the Cobra Ball and Rivet Joint variants, have been conducting 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 U.S. naval presences in the Arabian Sea and Mediterranean Sea, respectively, while a fleet of Arleigh Burke-class guided missile destroyers provide both offensive firepower and missile defense through the Aegis system.
Who makes the weapons used against Iran?
- boeing Modifications provided by L3Harris Technologies create B-1 bombers, F-15s, EA-18G Growlers, P-8A Poseidon and RC-135.
- Northrop Grumman It builds the B-2 stealth bomber and provides radar technology for the E-3 Sentry AWACS.
- lockheed martin It builds the F-35 Lightning II stealth fighter, F-22 Raptor jets, THAAD systems, M142 HIMARS, MGM-140 ATACMS missiles, and PrSMs.
- Raytheon division of RTX The Corporation makes Tomahawk missiles and MIM-104 Patriot missile systems.
- Spectrum Works We produce LUCAS one-way attack drones.
- General Atomics Aviation Produces the MQ-9 Reaper drone.
- Huntington Ingalls Industries Built the USS Abraham Lincoln and the USS Gerald R Ford.
What is the largest military company in the world?
According to the Stockholm International Peace Research Institute (SIPRI), the world’s top 100 defense companies will have sales of more than $679 billion in 2024.
U.S. companies account for nearly half of sales ($334 billion), followed by China ($88 billion), the United Kingdom ($52 billion), Russia ($31 billion), and France ($26 billion).
European giants such as Britain’s BAE Systems, Italy’s Leonardo, trans-European Airbus, France’s Thales and Germany’s Rheinmetall all have positions in the top 20 companies that grew in the wake of the Russia-Ukraine conflict.
The table below analyzes the top 100 weapons producing companies around the world.
Who is the largest defense contractor in the United States?
According to SIPRI’s report, 39 U.S. contractors are included in the list of top 100 defense companies, dwarfing the eight groups from China, which had the second largest number of contractors in the top 100.
The top five defense companies in the United States are:
- lockheed martin: In 1995, the world’s largest defense company was created through the merger of Lockheed and Martin Marietta. By 2024, it would generate $68.4 billion in revenue. It has contracts with the U.S. government to manufacture aircraft, missiles and space systems such as the F-35. Defense Department contracts are worth tens of billions of dollars. This year, the company signed a contract with the U.S. government to accelerate production of enhanced PAC-3 missile segments for anti-aircraft missiles.
- RTX: Formed in 2020 through the merger of Raytheon and United Technologies. The business’ three main segments focus on producing missile systems, jet engines, and avionics for the U.S. military and commercial airlines. In 2024, $43.6 billion of the company’s revenue came from defense.
- Northrop Grumman: The contractor was founded in 1994 after Northrop acquired Grumman. The company generates revenue through manufacturing stealth aircraft such as the B-21 Raider, space systems, and nuclear modernization programs for the U.S. Air Force and government. By 2024, $37.9 billion of revenue would come from defense.
- general mechanics: We develop nuclear submarines, battle tanks, armored vehicles, and Gulfstream business jets. By 2024, $33.6 billion of revenue would come from defense.
- boeing: The aircraft manufacturer was founded in 1916. Most of its revenue comes from production of commercial aircraft, defense programs and space systems, such as the F/A-18E/F Super Hornet, AH-64 Apache and Chinook helicopters, and P-8 Poseidon. By 2024, $30.6 billion of revenue would come from defense.
Who is Israel’s largest defense company?
According to a report by SIPRI, three Israeli contractors are included in the list of top 100 defense companies. Israel’s defense industry’s exports are rapidly increasing, driven by cutting-edge military technology.
- elbit system: Israel’s largest defense company specializing in drones, surveillance systems, battlefield electronics, and military optics. By 2024, $6.3 billion of revenue would come from defense.
- Israel Aerospace Industry: The state-owned defense and aerospace company specializes in missile defense systems, satellites, combat drones and radar technology. By 2024, $5.2 billion of revenue would come from defense.
- Raphael: The company is also state-owned and is developing Israel’s much-lauded Iron Dome missile defense system. We also offer precision-guided munitions. By 2024, $4.7 billion of revenue would come from defense.
U.S. defense stocks have soared in recent years.
According to SIPRI, global defense spending increased by 9.4% in 2024, reaching $2.7 trillion. NATO members also pledged to increase their annual defense budgets from 2% to 5% of GDP by 2035, adding hundreds of billions of dollars to annual spending.
To replenish rapidly depleting military stockpiles from wars in Ukraine and the Middle East, major arms contractors are investing billions of dollars in new orders and driving up their stock prices in response to increased demand.
The chart below shows the stock price growth of the largest U.S. defense companies from March 2023 to March 2026. RTX showed the largest increase at 110%, followed by Northrop Grumman at 60%, General Dynamics at 57%, Lockheed Martin at 37%, and Boeing at 5%.
