"Defense contracts have risen sharply in recent years as global security challenges intensify. The ongoing war in Ukraine and escalating tensions in the Middle East have prompted European nations and other allies to replenish depleted munitions and expand their military capabilities. NATO members have committed to higher spending targets, with many countries boosting budgets to address immediate threats and long-term deterrence needs."
"Following President Trump's election in 2024, he implemented broader budget cuts in some areas, but defense budgets rose as the administration focused on global security challenges and modernizing military capabilities. In particular, spending on advanced technologies, such as artificial intelligence, cybersecurity, and autonomous systems, was prioritized. With the National Defense Authorization Act (NDAA) just signed into law, over $900 billion in funding was authorized, signaling a deliberate push to accelerate delivery on capabilities."
"RTX has seen its stock climb 60% through 2025, reaching all-time highs near $185 per share as defense orders surged. The company's Raytheon segment reported a book-to-bill ratio of 2.27 in the third quarter, meaning new orders were double shipments, reflecting robust demand for missile systems amid a global rearmament. Key contracts highlight this momentum: Just this month, Raytheon secured a $1.7 billion deal to supply Spain with four Patriot fire units -"
Global security challenges, including the war in Ukraine and escalating tensions in the Middle East, have driven sharp increases in defense contracts and munitions replenishment. European nations and allies are replenishing depleted stockpiles and expanding military capabilities while NATO members commit to higher spending targets for immediate threats and long-term deterrence. The U.S. War Department is replenishing stockpiles drawn down by support for Ukraine while maintaining readiness against potential adversaries. Elevated government spending has increased demand for advanced defense systems. After the 2024 U.S. election, defense budgets rose and priorities shifted toward AI, cybersecurity, and autonomous systems, with the NDAA authorizing over $900 billion. Contractors positioned to benefit include RTX and Kratos; RTX reported a 60% stock gain through 2025 and a Raytheon book-to-bill ratio of 2.27.
Read at 24/7 Wall St.
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