U.S. Defense Giants Report Double-Digit Growth as Iran War Drains Missile Stockpiles

America’s largest defense contractors are reporting sharp revenue growth and record order backlogs as the prolonged war with Iran increases demand for missiles, interceptors, and air-defense systems.

According to a Financial Times report dated July 23, Lockheed Martin, Northrop Grumman, and RTX—the parent company of Raytheon—have accumulated their largest backlogs on record. The companies have also raised their financial outlooks for the year.

Missile Demand Drives Lockheed Growth

Lockheed Martin said second-quarter revenue from its missile division rose 19% from a year earlier to $4.1 billion. The increase was linked to expanded production of Patriot interceptors and Precision Strike Missiles used by the United States during the conflict with Iran.

A May analysis by the Center for Strategic and International Studies estimated that the United States had used between 1,000 and 1,400 Patriot missiles during the Iran war. Combined with continued military support for Ukraine, that demand has reportedly created serious production bottlenecks that may not be resolved before mid-2029.

Raytheon and Northrop Grumman Expand Backlogs

Raytheon, which produces Tomahawk cruise missiles, reported an 18% year-over-year increase in second-quarter revenue.

The Pentagon has purchased an average of 86 Tomahawks annually over the past decade. The reported 2027 budget proposal includes plans to acquire 785 missiles, reflecting the scale of Washington’s effort to rebuild depleted stockpiles.

Northrop Grumman also announced approximately $20 billion in second-quarter contract awards, pushing its backlog to a record $105 billion.

U.S. Weapons Inventories Under Pressure

According to reports, U.S. forces had used roughly half of America’s Patriot air-defense missile inventory and more than 30% of its Tomahawk cruise missiles by April during the confrontation with Iran.

Reuters reported that President Donald Trump has urged American defense manufacturers to increase production as the U.S.-Israel war against Iran and the prolonged Russia-Ukraine war place growing pressure on Pentagon stockpiles.

Demand is also rising overseas. Nearly 48% of Raytheon’s backlog reportedly comes from international customers, with strong demand for Patriot systems, AIM-120 AMRAAM missiles, and GEM-T interceptors.

Defense Companies Invest in New Production

Defense stocks rose alongside the growing order books. Lockheed Martin shares reportedly climbed 11%, while RTX gained about 7%.

The companies are now investing billions of dollars in expanded manufacturing capacity. Lockheed Martin began construction on a new facility in Alabama in May, while Northrop Grumman, Raytheon, and L3Harris are also expanding production sites.

“We view the U.S. baseline defense budget request exceeding $1 trillion for the first time as very positive,” RTX CEO Christopher Calio said, adding that multiyear funding requests could support sustained demand for years.

The figures underline a broader strategic challenge: the United States and Israel are confronting an Iran-backed terror network while Washington must also rebuild weapons inventories and maintain readiness for future threats. Expanding missile and interceptor production is no longer optional—it is a national-security necessity.