U.S. Defense Stocks Surge Amid Rising Global Arms Demand
U.S. defense contractors are experiencing unprecedented growth as conflicts in Gaza and Ukraine drive global demand for military hardware. Since October 2023, Washington has approved over $32 billion in arms sales to Israel alone, with Boeing securing the lion's share—$19 billion for fighter jets and guided bombs. This single contract series represents more than 25% of Boeing's total defense backlog, which has reached record levels since the Gaza war began.
Other major players are capitalizing on the surge. L3Harris, General Dynamics, and Northrop Grumman collectively landed $10 billion in joint contracts. Lockheed Martin added $743 million in missile sales, while Caterpillar booked $295 million for armored bulldozers. Even smaller suppliers like Rolls-Royce Solutions America and Leonardo's U.S. unit reported nine-figure contracts, with many deliveries scheduled through 2029.
