Pentagon awards $135B contracts to ease shortages amid Iran war
The Pentagon just announced $135 billion in new defense contracts to help fix US weapon shortages and meet rising demands, especially with the Iran war, with Lockheed Martin getting $59 billion to ramp up Patriot missile production, and General Dynamics and Huntington Ingalls Industries scoring up to $76.6 billion for building advanced submarines and upgrading shipyards.
The administration has requested $1.5 trillion for a defense budget to prepare for future conflicts.
Patriot missile surge and submarine orders
Lockheed Martin will boost Patriot missile output from roughly 600 to about 2,000 per year by 2030, because of more missile and drone threats facing US and Gulf forces.
The submarine deals will fund nine Virginia-class subs with expanded capacity for Tomahawk cruise missiles and five Columbia-class nuclear-missile submarines.
These investments aim to keep the US military ready for anything, while also supporting allies in the Gulf region.
Defense contractors' shares rise after announcement
After the announcement, shares of Lockheed Martin, General Dynamics, and Huntington Ingalls Industries jumped up.