Khaberni - American defense companies reported on Tuesday a sharp increase in the demand for military equipment in the first quarter of this year, as the war in the Middle East drives governments around the world to place new orders.
This sector witnessed strong growth in 2025, due to the wars in Ukraine and the Gaza Strip, Russian incursions into European airspace, Chinese military maneuvers near Taiwan, and tensions in the Red Sea.
Government orders for military equipment are increasing worldwide amid escalating geopolitical conflicts. For countries already experiencing conflicts, there is an urgent need to increase spending to replenish stocks or maintain equipment.
American defense companies "RTX," "Northrop Grumman," and "General Electric Aerospace" reported an increase in orders during the first quarter of the year.
Solutions and Agreements
RTX CEO Chris Calio told a Wall Street analyst that the company is working with the Pentagon "to accelerate ammunition production," while expressing hope for a "sustainable solution" to the conflict in the Middle East.
American officials announced new agreements in recent months to increase the production of Tomahawk and Patriot missiles and G-T missiles, along with other weapons.
Prior to that, the "Raytheon" unit - part of the "RTX" group - announced 5 "historic" agreements with the Pentagon, which Calio described as "extremely important for national security." The company invested about 900 million dollars to expand its production capacity.
Calio considered that "the current situation clearly shows the need for ammunition and integrated air defense technologies and missiles, in addition to more advanced capabilities to face growing threats."
He added, "We are witnessing a very strong demand, both domestically and globally," at a time when the company raised its financial forecasts for the entire year.
Revenue and forecasts
"General Electric Aerospace" described the first quarter of the year as "strong," as its revenues jumped by 25% in light of what CEO Larry Culp described as a "dynamic geopolitical landscape."
Culp said the company expects the war in the Middle East and its effects to continue throughout the summer.
He added that his company continues in its defense programs "to execute swiftly to meet the highest priority military needs to support American fighters and allies."
However, the company, which manufactures engines for Boeing and Airbus, also suffered some consequences of the war. The decline in travel in the Middle East negatively affected the maintenance operations conducted by the company.
