MARCH 2026 Β· SECTOR DEEP DIVE

THE DEFENSE &
AEROSPACE
NEW ORDER

Operation Epic Fury lit the fuse. A $1 trillion defense budget pays the bill. Six tickers stand at the center of history's largest rearmament cycle.

PUBLISHED: MARCH 4, 2026 Β· @AICCELERATEENG
OPERATION EPIC FURY ACTIVE β€” DEFENSE STOCKS RE-RATING IN REAL TIME
$LMT+6.5%LOCKHEED MARTIN
$RTX+6.5%RTX CORP
$NOC+5.0%NORTHROP GRUMMAN
$BWXT+4.8%BWX TECHNOLOGIES
$GE+3.9%GE AEROSPACE
$HAL+2.1%HALLIBURTON
$KTOS+6.7%KRATOS DEFENSE
US DEFENSE BUDGET$1.01TFY2026
FY2027 TARGET$1.5TTRUMP PROPOSAL
NATO TARGET5% GDPBY 2035
$LMT+6.5%LOCKHEED MARTIN
$RTX+6.5%RTX CORP
$NOC+5.0%NORTHROP GRUMMAN
$BWXT+4.8%BWX TECHNOLOGIES
$GE+3.9%GE AEROSPACE
$HAL+2.1%HALLIBURTON
US DEFENSE BUDGET$1.01TFY2026
NATO TARGET5% GDPBY 2035
πŸ“Š

Key Stats Dashboard

US Defense Budget FY2026
$1.01T
First time exceeding $1 trillion in history
FY2027 Trump Proposal
$1.5T
+50% over FY2026 β€” "Big Beautiful" trajectory
Combined Big-5 Backlog
$623B
LMT $194B + RTX $268B + NOC $95.7B + GE $190B (commercial+defense)
Tomahawk Production Ramp
16x
60/yr β†’ 1,000+/yr under 7-year Pentagon deal
Golden Dome FY2026 Funding
$13.4B
First-year allocation; total program $175B–$542B (CBО)
Operation Epic Fury Targets (Day 1)
1,000+
Strikes in 24 hours β€” Tomahawk-led salvo opening
BWXT Backlog Growth (2025)
+50%
$4.8B β†’ $7.3B β€” driven by naval propulsion + AUKUS
NATO Global Defense Spend 2025
$2.63T
Up from $2.48T in 2024 β€” Europe at 21% of global total
πŸ“ˆ

Defense Spending Charts

US Defense Budget ($B) β€” 2021–2027E
Missile Production Ramp β€” Annual Units (Target)
Big Defense Backlogs ($B) β€” End of 2025
March 2, 2026 β€” Defense Stock Surge (%)
πŸ—ΊοΈ

Defense Ecosystem β€” Threat to Response

⚠ ADVERSARY THREAT VECTOR β€” BALLISTIC MISSILES / HYPERSONICS / NAVAL / CYBER
LAYER 1 β€” DETECT & TRACK
RADAR / SENSOR
$RTX
SPY-6 / LTAMDS
β†’
SPACE LAYER
$NOC
SDA Tracking Sats
β†’
COMMAND & CONTROL
$NOC
IBCS Brain
LAYER 2 β€” INTERCEPT & DEFEND
MISSILE DEFENSE
$LMT
THAAD / PAC-3 MSE
+
INTERCEPTORS
$RTX
Patriot / SM-3 / SM-6
+
GOLDEN DOME
$LMT + $RTX
Space-Based Shield
LAYER 3 β€” STRIKE & PROJECT POWER
AIR SUPERIORITY
$LMT
F-35 Lightning II
+
DEEP STRIKE
$NOC
B-21 Raider
+
MUNITIONS
$RTX
Tomahawk / AMRAAM
LAYER 4 β€” POWER & LOGISTICS
NAVAL PROPULSION
$BWXT
Nuclear Reactors
+
JET ENGINES
$GE
F135 / LEAP / T700
+
ENERGY INFRA
$HAL
Energy Services
🎯

Stock Deep Dives

✈️
$LMT
Lockheed Martin Corporation
+6.5%
The Arsenal of Democracy β€” F-35 + Golden Dome + THAAD
2025 Revenue
$75B
Revenue Growth
+6% YoY
Backlog (Record)
$194B
Backlog / Revenue
2.5x
F-35 Deliveries '25
191 jets
2026 FCF Guided
$6.5–6.8B
β–Έ ACTIVE CATALYSTS
Lots 18-19: 296 F-35s / $24B contract, deliveries start 2026
PAC-3 MSE multiyear: 600 β†’ 2,000 units/yr (3x capacity)
THAAD multiyear: targeting 2,000 units/yr
Golden Dome β€” $13.4B FY2026; $24.4B in Big Beautiful Bill
F-35 flew in Operation Epic Fury β€” live combat validation
πŸš€
$RTX
RTX Corporation (Raytheon + P&W + Collins)
+6.5%
Missiles. Engines. Sensors. The full arsenal of modern war.
2025 Revenue
$88.6B
Revenue Growth
+10% YoY
Total Backlog
$268B
Defense Backlog
$107B
Raytheon Backlog
$75B (record)
2025 Free Cash Flow
$7.9B
β–Έ ACTIVE CATALYSTS
7-year Pentagon deal: Tomahawk 60β†’1,000+/yr (16x ramp)
AMRAAM: β†’ 1,900+/yr; SM-6: β†’ 500+/yr; SM-3 IIA ramp
Raytheon 2025 awards: $40B β€” book-to-bill 1.43 full year
Pratt & Whitney F-135 (F-35 engine) military +30% in 2025
Golden Dome: RTX has "solutions at each layer" β€” CEO Calio
πŸ›Έ
$NOC
Northrop Grumman Corporation
+5.0%
The Bomber King β€” B-21 Raider + Sentinel ICBM + Space
2025 Revenue
$42B
2026 Guided Revenue
$43.5–44B
Backlog (Record)
$95.7B
2025 Free Cash Flow
$3.3B (+26%)
Aeronautics Q4 Growth
+18% YoY
Space Backlog
$26.2B
β–Έ ACTIVE CATALYSTS
B-21 Raider: $4.5B congressional funding for 25% production ramp
First operational B-21 delivery targeted 2027 (Ellsworth AFB)
150 SDA satellites contracted (PWSA Tranche 1-3)
Solid rocket motor capacity: doubled since 2021, +50% more by 2027
IBCS: Integrated Battle Command System β€” brains of US air defense
βš›οΈ
$BWXT
BWX Technologies, Inc.
+4.8%
America's nuclear backbone β€” subs, carriers, micro-reactors, AUKUS
2025 Revenue
$3.2B
Revenue Growth
+18% YoY
Backlog
$7.3B
Backlog Growth
+50% YoY
2025 EPS Growth
+20% YoY
2026 Revenue Guided
~$3.75B
β–Έ ACTIVE CATALYSTS
$2.6B Navy contracts (July 2025): Virginia + Columbia-class subs
$1.5B NNSA DUECE contract: domestic uranium enrichment plant (TN)
AUKUS program: sole candidate to supply Australia's nuclear subs
BANR: 50MW micro-reactor β€” no-grid power for forward military bases
Only public company with 70+ years of naval nuclear propulsion
πŸ”§
$GE
GE Aerospace
+3.9%
Every F/A-18. Every F-15. Every Apache. GE powers the military sky.
2025 Revenue (GAAP)
$45.9B
Revenue Growth
+18% YoY
Total Backlog
~$190B
Defense Backlog
$21B
LEAP Deliveries '25
1,802 (+28%)
2025 Free Cash Flow
$7.7B (+24%)
β–Έ ACTIVE CATALYSTS
Defense book-to-bill 2.2x in Q4 2025 β€” massive order intake
Defense engine output +83% in Q3, +30% full year 2025
F135 engine (F-35 program) β€” $2.2B sustainment booked in 2025
GE9X for Boeing 777X β€” loss recognition ended; ramp ahead
LEAP fleet expected to triple by 2030; $1B+ MRO investment ongoing
β›½
$HAL
Halliburton Company
+2.1%
Defense's silent enabler β€” every military operation runs on energy.
2025 Revenue
$22.2B
Revenue Change
-3% YoY
Middle East Revenue
$1.5B/qtr
2025 Operating Cash
$2.9B
2025 Free Cash Flow
$1.9B
Shareholder Returns '25
$1.6B
β–Έ ACTIVE CATALYSTS
Saudi Arabia β€” key US ally co-belligerent in Operation Epic Fury; drilling activity surging
Middle East energy infrastructure spend accelerating post-conflict
VoltaGrid partnership: 400MW modular power for data centers / defense
Military logistics: every carrier strike group, base, tank runs on HAL-drilled oil
Risk: North America softness; HAL pivoting to international growth in 2026
βš–οΈ

Risk / Reward Matrix

Positioning based on structural tailwind strength vs. execution risk. Research only β€” not investment advice.

β–² HIGH REWARD / LOW RISK
$RTX $LMT
Both carry record backlogs ($268B and $194B), direct munitions ramp mandates, multi-year government contracts, and Golden Dome positioning. Near-certain revenue visibility 3–5 years out.
β–² HIGH REWARD / MED RISK
$NOC $GE
$NOC has B-21 production ramp upside but Sentinel cost overrun risk. $GE's defense book-to-bill 2.2x is extraordinary β€” risk is commercial aviation dependency on Boeing/Airbus output.
β—† HIGH REWARD / HIGH RISK
$BWXT
AUKUS + naval nuclear monopoly + micro-reactors = enormous long-term opportunity. Risk: small cap (~$18B market cap), limited liquidity, long project timelines, political sensitivity of nuclear programs.
β–Ό WATCH / ASYMMETRIC PLAY
$HAL
Defense-adjacent via Middle East energy infra. 2025 revenue declined 3%. The thesis hinges on sustained conflict driving energy demand in the Gulf and US domestic production ramp. Less direct defense exposure than the other five.
← LOWER RISK HIGHER RISK β†’
πŸ“…

Catalyst Timeline 2026–2030+

2026 β€” NOW
Operation Epic Fury + $1T Defense Budget Live
US-Israel joint strikes on Iran (March 2, 2026) confirmed combat efficacy of F-35, Tomahawk, B-2, Patriot. $1.01T FY2026 defense budget enacted. Munitions restock cycle begins urgently. Golden Dome $13.4B FY2026 allocation active. NATO Europe 21% of global defense spend.
$LMT $RTX $NOC OPERATION EPIC FURY $1T BUDGET
2027
B-21 Raider Operational + $1.5T Budget Proposal
First operational B-21 Raider delivered to Ellsworth AFB. Trump's $1.5T FY2027 budget proposal would represent 50% increase. F-35 Lot 18-19 deliveries (296 jets) begin shipping. RTX Tomahawk production approaching 1,000/yr mark.
$NOC $LMT $RTX B-21 RAIDER
2027–2028
AUKUS Nuclear Submarine Propulsion Ramp
BWXT nuclear reactor components for Virginia-class delivery cycle reaches peak. AUKUS submarine agreement drives Australian naval nuclear program. BWXT $2.6B Navy contract deliveries active. Micro-reactor (BANR) prototype deployment begins.
$BWXT AUKUS NAVAL NUCLEAR
2028–2030
Golden Dome Orbital Layer + AMRAAM 1,900/yr Target
Golden Dome space-based interceptors deployed in low Earth orbit. RTX AMRAAM reaches 1,900 units/yr production target. LMT THAAD ramp complete. NOC SDA satellite constellation Tranche 3 operational. Sentinel ICBM EMD phase completion.
$LMT $RTX $NOC GOLDEN DOME AMRAAM 1,900
2030 β€” 2035
NATO 5% GDP Target + $340B+ European Equipment Market
All NATO allies targeting 5% GDP defense spend by 2035. European equipment market growing at ~15% CAGR to $340B. GE LEAP fleet triples from 2024 baseline. Sentinel ICBM enters production. B-21 Raider fleet expands toward 100+ aircraft program of record.
ALL TICKERS NATO 5% GDP $340B EU MARKET
πŸ“š

Research Sources

White House: Operation Epic Fury Launch Statement (Mar 2026)
Reuters: US Military Operation Timeline, Gen. Caine Briefing
Council on Foreign Relations: $1T Defense Spending Analysis
Wikipedia: Golden Dome Missile Defense System (funding, architecture)
Air & Space Forces Magazine: F-35 Record 191 Deliveries 2025
GuruFocus: LMT Q4 2025 β€” Record $194B Backlog
RTX.com: Raytheon 5 Landmark Pentagon Production Agreements
Breaking Defense: RTX Tomahawk/AMRAAM Ramp Deal Details
Fintool: RTX Q4 2025 β€” $268B Backlog, $88.6B Revenue
SatNews: NOC Q4 2025 β€” Record $95.7B Backlog, B-21 Acceleration
AeroTime: USAF B-21 Raider 25% Production Expansion ($4.5B)
BusinessWire: BWXT $2.6B Navy Nuclear Reactor Contracts
StockTitan: BWXT FY2025 Results β€” $7.3B Backlog +50%
GE Aerospace: Q4 & FY2025 Earnings β€” $45.9B Revenue, $190B Backlog
Halliburton: Q4 & FY2025 Results β€” $22.2B Revenue
Investing.com: Defense Stocks Surge β€” Operation Epic Fury (Mar 2, 2026)
CNBC: NATO Allies Agree to 5% GDP Defense Spending Target
Breaking Defense: Europe Defense Spending Hits 21% of Global Total
ANS: NNSA Awards BWXT $1.5B Uranium Enrichment Contract
Air & Space Forces: B-21 Production Expansion Contract Expected Q1 2026

Research Disclaimer: This page is produced by @AIccelerateEng for research and educational purposes only. It does not constitute personalized financial advice, a recommendation to buy or sell any security, or an offer or solicitation to invest. All data is sourced from publicly available information as of March 4, 2026. Past performance does not guarantee future results. All investments involve risk, including possible loss of principal. Defense sector investments are subject to geopolitical, budgetary, program execution, and supply chain risks. Always conduct your own due diligence and consult a licensed financial professional before making investment decisions.