Lockheed Martin (LMT) and RTX Corporation (RTX) are increasing production of missiles and defense systems in response to heightened munitions usage during ongoing conflicts, particularly in Iran. Last Friday, the White House hosted executives from both companies amid Pentagon concerns that U.S. munitions stockpiles are low. The need for advanced weaponry such as the THAAD anti-ballistic defense system and Tomahawk missiles has surged, as the U.S. military grapples with production lead times that can span years.
Since the U.S. military’s first strike on Iran in June 2025 under Operation Midnight Hammer, LMT and RTX’s stock prices have seen significant gains, rising 40% and 57% respectively over the past year. Lockheed Martin’s backlog has increased by 8% year-over-year to a record $194 billion, while RTX’s backlog has risen 23% YoY to $268 billion. Both companies are set to expand their capacities significantly, with Lockheed planning to quadruple production of THAAD missile interceptors and open a new munitions acceleration center in Arkansas.
