US Defense Firms Surge Production Under $1.5 Trillion Budget Request

Major US defense companies including RTX, Northrop Grumman, and GE Aerospace reported a surge in military equipment orders during the first quarter of 2026. Driven by active conflicts in Gaza and Ukraine, as well as escalating tensions with Iran, these firms are accelerating the production of Tomahawk, Patriot, and GEM-T missile systems to meet rising domestic and international demand.

To address the heightened urgency created by the conflict with Iran, Northrop Grumman added 20 manufacturing facilities in the United States over the last two years. GE Aerospace reported a 25 percent revenue jump in the first quarter, citing a need to execute with speed against high-priority military needs. RTX invested nearly $900 million to expand its production capacity to counter evolving threats.

Simultaneously, US Undersecretary of Defense Jules W. Hurst III announced that President Donald Trump has requested a $1.5 trillion budget for fiscal 2027. This represents a 42 percent increase over previous levels, designed to supercharge the defense industrial base. The funding aims to expand the production of major weapon systems, strengthen critical supply chains, and provide support for tens of thousands of small and medium-sized businesses integrated into the military infrastructure.