RTX, Northrop Grumman and GE Aerospace boost weapons output on war demand

Diggers remove the rubble of buildings destroyed in Israeli strikes as they look for survivors buried underneath in the southern Lebanese coastal city of Tyre on April 21, 2026. Photo / Mahmoud Zayyat, AFP

US defence companies are reporting a surge in demand for military equipment, as the war in the Middle East prompts fresh orders from governments around the world.

Earnings on Tuesday signalled that 2026 will be another strong year after a robust 2025 after continuing conflicts in Gaza and Ukraine, Russian incursions into European airspace, Chinese manoeuvrings towards Taiwan and Red Sea tensions.

More governments are ordering military equipment amid rising geopolitical strife. For those who are already in conflict, there is a need to spend more to replenish stocks or maintain machinery.

US defence companies RTX, Northrop Grumman and GE Aerospace all reported increased orders in the first quarter.

While hoping for a “sustained resolution” to the Middle East conflict, RTX CEO Chris Calio told a Wall Street analyst call that the company was working with the Pentagon “to accelerate munitions production”.

US officials have announced new agreements in recent months to increase production of the Tomahawk, Patriot and GEM-T missiles, among other weapons systems.

RTX unit Raytheon previously announced five “landmark” Pentagon agreements that Calio described as “vitally important for national security”. The company has already invested nearly US$900 million ($1.5b) to expand capacity.

“The current landscape clearly underscores the need for munitions, depth, integrated air and missile defence technology and more advanced capabilities to counter evolving threats,” Calio said.

“We’re seeing really, really strong demand, both domestically and internationally,” he added as the company raised several full-year financial projections.

Similarly, GE Aerospace described its first quarter as “strong”, with revenues jumping 25% in light of what chief executive Larry Culp described as a “dynamic geopolitical landscape”.

Culp said on a conference call that the company expects the Middle East war and its effects to persist through the summer.

In its defence programmes, GE Aerospace continues “to execute with speed against high-priority military needs in support of US and allied warfighters,” Culp added.

But the company, which builds engines for Boeing and Airbus, also suffered some ill effects from the war. Cutbacks in travel in the Middle East hit the company’s maintenance business.

New facilities

At Northrop Grumman, the objective is also to deliver as quickly as possible on orders for weapons systems.

The company has added 20 new manufacturing facilities in the United States over the past two years, said CEO Kathy Warden.

“Clearly, the conflict with Iran has created a heightened sense of urgency.”

Calio of RTX said the recent contracts with the Pentagon “will give the kind of long-term visibility that the supply chain will need to invest, which is critically important”.

US Undersecretary of Defence Jules Hurst said President Donald Trump’s fiscal 2027 budget requested US$1.5 trillion, describing the demand as a “generational investment in the United States military, the arsenal of freedom”, he said at a Pentagon briefing.

“This 42% increase will supercharge our defence industrial base by expanding production of major weapon systems while strengthening supply chains and supporting tens of thousands of small- and medium-sized businesses.”

Boeing, which also has a defence business, will report earnings on Wednesday, while Lockheed Martin is set to release results on Thursday.

-Agence France-Presse