U.S. Defense Contractors Report Record Backlogs Amid Iran Conflict Missile Shortages
RTX and Northrop Grumman disclosed unprecedented order backlogs, driven in part by massive Tomahawk and missile defense contracts needed after the war with Iran.
Two of America’s biggest defense suppliers revealed record-high order backlogs this week. RTX reported a companywide backlog of $340 billion, of which $164 billion is defense-related, and highlighted roughly $23 billion in Tomahawk cruise missile contracts and over $14 billion in AMRAAM orders. Northrop Grumman’s backlog climbed to $109.6 billion, with $16.4 billion in new awards covering the Sentinel nuclear missile program, Virginia-class submarines and F-35 fighters.
While neither firm linked the entire backlog to the Iran war, the Pentagon’s need to replace expended missiles—estimated at $21.7 billion for munitions—has pressured suppliers. The Congressional Budget Office notes that missile defense stocks, including Patriot and THAAD, have fallen sharply, raising concerns about readiness. RTX later secured contracts for SM-6 and SM-3 interceptors, and both companies are planning capacity expansions that could take years to meet demand.
Why it matters
The backlogs signal rising defense costs and potential delays in restoring U.S. missile capabilities after the Iran war.
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