Lockheed Martin and RTX Shares: Emerging Cornerstones of Contemporary Defense

Surge in U.S. Munitions Demand Amid Iran Conflict

The ongoing hostilities involving Iran have resulted in the United States using far more munitions than originally anticipated.

This heightened demand has prompted the U.S. government to call on defense manufacturers to ramp up output of missiles and defense systems. Notably, Lockheed Martin (LMT) and RTX Corporation (RTX) are at the center of these efforts.

Recently, executives from both companies were invited to the White House as concerns grew within the Pentagon about dwindling munitions reserves. The advanced weaponry required for ongoing operations can take years to produce, making timely production increases critical.

In response, Lockheed Martin and RTX are implementing strategies to accelerate manufacturing, addressing both government and investor interests as demand continues to climb.

There is especially urgent need for Lockheed’s THAAD anti-ballistic missile system and RTX’s Tomahawk cruise missiles. Both firms are also securing additional contracts for the F-35 fighter jet, with Lockheed responsible for assembly and RTX supplying essential components.

LMT & RTX: Stock Performance Overview

The U.S. initiated its first strike against Iran in June 2025, targeting three nuclear sites under Operation Midnight Hammer. Since then, the conflict has evolved into Operation Epic Fury, and shares of Lockheed and RTX have surged by 40% and 57% over the past year, respectively.

RTX has outpaced both the broader market and the Zacks Aerospace-Defense Industry, soaring 150% over five years, while Lockheed has climbed more than 70%. These gains are partly attributed to the extensive use of their weaponry in the Ukraine-Russia conflict, which escalated in February 2022.

Image Source: Zacks Investment Research

Consistent Growth for Lockheed and RTX

Lockheed Martin is projected to see a 5% increase in annual sales this year, with revenues expected to reach $82.34 billion by fiscal 2027.

Building on this growth, Lockheed’s earnings per share are forecasted to jump 29% in fiscal 2026, rising from $23.12 to $29.87, and then another 8% in 2027 to $32.26 per share.

Image Source: Zacks Investment Research

RTX is also on track for robust expansion, with sales expected to grow 5% in fiscal 2026 and another 7% the following year, surpassing $100 billion in revenue.

On the earnings front, RTX’s EPS is set to rise 8% in 2026 and another 10% in 2027, reaching $7.50 per share.

Image Source: Zacks Investment Research

Production Expansion: Backlogs and Capital Investment

Lockheed has secured two new contracts related to the F-35, which now features advanced technologies such as AI-assisted targeting. RTX, as a key supplier, has received contracts to enhance F-35 engines and to modernize Tomahawk missiles.

Lockheed has also agreed with the Pentagon to quadruple production of THAAD missile interceptors and to boost output of the Patriot PAC-3 air-defense system, which has been heavily deployed in Ukraine.

RTX benefits from increased THAAD production as it supplies critical radar components. The THAAD system, which intercepts missiles of various ranges, currently has nine units deployed globally. Missile production is set to rise from 96 to 400 units annually.

To support this, Lockheed plans to open a new “munitions acceleration center” in Camden, Arkansas, as part of a multi-billion-dollar investment to expand PAC-3 manufacturing.

While Lockheed hasn’t released capital expenditure guidance for 2026, a significant increase is anticipated. Over the past year, Lockheed’s CapEx has dipped 2% to $1.64 billion, but its backlog has grown 8% year-over-year to a record $194 billion, justifying further investment.

Image Source: Zacks Investment Research

RTX’s backlog has jumped 23% year-over-year, reaching an all-time high of $268 billion, reflecting robust demand in both commercial and defense sectors.

RTX’s capital expenditures have edged up to just over $2.62 billion in the trailing twelve months, and the company expects to maintain elevated investment levels to support missile, radar, and aerospace production.

Image Source: Zacks Investment Research

Conclusion

Lockheed Martin and RTX Corporation are experiencing unprecedented demand, fueled by international conflicts, increased U.S. defense budgets, and record-setting order backlogs.

For investors with a long-term perspective, these leading aerospace and defense companies offer strong revenue visibility, expanding production, and continued benefits from ongoing geopolitical tensions.

Featured Semiconductor Opportunity

A lesser-known company in the semiconductor industry is poised for significant growth, offering products that major players like NVIDIA do not. As the market for Artificial Intelligence, Machine Learning, and the Internet of Things expands, this company is well-positioned to capitalize on rising demand. Global semiconductor manufacturing is expected to nearly double from $452 billion in 2021 to $971 billion by 2028.