AhlulBayt News Agency (ABNA): Amid rising geopolitical tensions and expanding military expenditures worldwide, U.S. defense industries have emerged as one of the most significant beneficiaries of the American-Israeli war against Iran, recording substantial increases in revenues and military orders in recent months.
According to a report by Al-Araby Al-Jadeed, major U.S. arms companies, including RTX (formerly Raytheon Technologies), Northrop Grumman, Lockheed Martin, and General Electric Aerospace, have reported growth in sales and military orders—growth coinciding with increased defense spending by the United States and Western countries, as well as rising demand for air defense systems, missiles, and advanced fighter jets.
Observers believe that the war against Iran has not only created immediate military demand but has also reinforced the movement toward a long-term security-oriented economy—a trend that increases the influence of American arms companies in the U.S. political and economic decision-making structure. On February 28, 2026 (9 Esfand 1404), the United States and Israel launched a war against Iran that resulted in over 3,000 martyrs. Subsequently, on April 8, 2026 (19 Farvardin 1405), Washington and Tehran announced a ceasefire in hopes of reaching an agreement to end the conflict. On April 10, 2026 (21 Farvardin 1405), Pakistan hosted a round of negotiations between the two sides that did not lead to an agreement, and subsequently, the ceasefire was extended at Islamabad's request without a specified timeline.
Profits of U.S. Arms Companies
RTX achieved sales of $22.1 billion in the first quarter of 2026, an 8.9 percent increase compared to $20.3 billion in the same period last year. The company's backlog of orders reached $271 billion, one of the highest levels in its history. General Electric Aerospace's revenue also reached $12.4 billion in the same period, a 25 percent increase from the previous year, driven by rising demand for military aircraft engines and aviation systems.
Meanwhile, Northrop Grumman recorded sales of $9.9 billion in the first quarter of this year, 4 percent higher than the same period last year. Lockheed Martin, as the largest weapons supplier to the U.S. military, maintained its high revenue level at approximately $18 billion in this period, due to continued demand for air defense systems and advanced fighter jets.
RTX is one of the most important manufacturers of missile systems, defense systems, and aircraft engines in the United States, while Lockheed Martin is renowned for producing F-35 fighter jets and missile defense systems. Northrop Grumman is also considered a major producer of drones, space systems, and strategic defense. These results were released concurrently with new agreements to increase production of Tomahawk missiles, Patriot missiles, GAM-T missiles, and other weapons and defense systems.
Chris Calio, CEO of RTX, announced to analysts on Wall Street that the company, in cooperation with the U.S. Department of Defense (Pentagon), is accelerating munitions production—an action taken due to increased demand arising from geopolitical developments in the Middle East and other regions.
Depletion of Military Stockpiles
Experts believe that the U.S.-Israeli war against Iran differs from previous conflicts because the extensive use of missiles, drones, and air defense systems has led to a rapid depletion of U.S. and Israeli weapons stockpiles. In this context, Mohammad Shaqir, a military affairs expert, says that the increase in orders for arms companies is not limited to the recent war but is also related to a global environment characterized by rising geopolitical tensions and an arms race.
He explains that the world is experiencing a phase of reshaping the international order, pushing countries to increase military expenditures and strengthen their defense capabilities. According to him, the war against Iran has particularly increased demand for interceptor missiles, air defense systems, and advanced fighter jets, especially at a time when the consumption of precision munitions has risen sharply. He also points to the high cost of these weapons, which directly leads to increased profits for defense companies.
He adds that the success of certain military systems in intercepting missiles and carrying out precision strikes has encouraged other countries to purchase this equipment, fueling an increase in U.S. military orders. This trend is not limited to the United States and Israel; European countries and Arab states of the Persian Gulf have also turned to this market to strengthen their defense capabilities.
Influence of the Military-Industrial Complex
According to observers, this boom has revived the debate over the influence of the "military-industrial complex"—a term coined by former U.S. President Dwight D. Eisenhower in 1961 to warn of the growing influence of arms companies and the military on the country's politics. Shaqir believes that the influence of this complex has been significantly strengthened in U.S. foreign policy, and defense companies directly or indirectly affect military and arms policies.
He says that these companies play a prominent role in the decision-making structure through financing election campaigns, research centers, and pressure groups, and they even influence some political currents, including the Republican Party.
Markets and Investors
The escalation of military tensions has also affected the stock market of U.S. defense companies, leading to an increase in their share values—a growth driven by expectations of continued military demand and increased defense spending in the coming years. For example, RTX's share recorded a profit of $1.5 in the first quarter of 2026, a 21 percent increase from the previous year.
Major investment funds such as BlackRock and State Street are among the main shareholders of U.S. arms companies. BlackRock owns approximately 7 percent of Lockheed Martin's shares, and State Street owns nearly 14.9 percent of the company's shares, in addition to having extensive investments in other military companies.
Despite these huge profits, Shaqir believes that American citizens do not directly benefit from this growth, as their standard of living is affected simultaneously by rising inflation and economic pressures resulting from military expenditures. On April 30, the U.S. Bureau of Economic Analysis announced that the annual inflation rate in March reached 3.5 percent, primarily due to rising energy prices.
According to Shaqir, the U.S. capitalist economy allows investment companies and military industries to reap huge profits during wartime, while citizens face rising living costs. He warns that the continuation of wars and tensions, while increasing the long-term profits of arms companies, also exacerbates economic pressure on societies and diverts resources from other sectors toward the military domain.
A few days ago, the U.S. Department of Defense (Pentagon) announced that the war against Iran has so far cost the country about $25 billion. Jules Hurst, a Pentagon financial official, stated at a congressional hearing that the bulk of these costs were for munitions, military operations, and equipment replacement—a figure indicating the rapid pace of escalating military expenditures in a short period. Meanwhile, some Democratic lawmakers have described this strategy as dangerous, warning that limited military gains may lead to greater long-term losses.
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