U.S. Strikes on Iran Will Likely Boost Defense Stocks. Here's What Will Keep the Cash Flowing Even After the Conflict Ends
MW U.S. strikes on Iran will likely boost defense stocks. Here's what will keep the cash flowing even after the conflict ends.A massive backlog of maintenance and software contracts will ensure recurring revenue. Saturday's strikes on Iran by the U.S. and Israel will likely shine an even bigger spotlight on defense stocks. Shown: Lockheed Martin F-22 Raptor 4001 stealth fighter in file photo.That dynamic increasingly resembles the aerospace aftermarket economy - and in some respects, enterprise software - where installed bases drive recurring cash flow. Three companies that stand to benefit: Lockheed Martin , RTX and Northrop Grumman .Lockheed Martin: the ecosystem model. Lockheed Martin provides the clearest example of this shift. The F-35 program represented 26% of consolidated net sales in 2024, according to the company's latest Form 10-K. The filing explicitly states that F-35 revenue includes development, production and maintenance, underscoring how support and logistics are embe
