Rearming America: Industrial Base Moves Toward Wartime Footing

Research evidence excerpt

Rearming America: Industrial Base Moves Toward Wartime Footing

USA | Aerospace & Defense Electronics EquityJulyResearch15, 2026

Exhibit 1 - 2026YTD FMS by Company - LMT &Rearming America: Industrial Base Moves

RTX Make Up ~70% of YTD FMS

LDOS, LHX, $204 TXT, $150 BAE, $2,362

$290 GD, $438Toward Wartime Footing

NOC, $1,518

BA,

The Center for Strategic & International Studies released a report on industrial $6,695 LMT, $34,756

base progress, over 1.5 years since the Pentagon outlined the "wartime footing" RTX, $20,547

goal for the US industrial base acquisition strategy. Highlights include new

entrant contracts >2x since 2015, rare earth production investments, and

projected budget share projected to reach 4.5% of GDP in FY27. Concerns .Source: DefenseLMT RTXSecurityBA NOCCooperationGD LDOS AgencyLHX TXT BAE

continue in lead times & critical munitions and materials stockpiles resilience.

Exhibit 2 - Defense Spend as a % of GDP -

Projected to Rise to Estimated 4.6% After a

Checking In On Industrial Base Policy. A new CSIS study finds the U.S. defense industrial Relatively Flat Period

base is making measurable progress toward supporting wartime production, driven by Pentagon 40.0%35.0%

GDP

acquisition reforms, increased munitions spending, and a surge in new defense suppliers. 5,000 of% 30.0%25.0%

20.0%companies have entered the defense market in FY24 and FY25, with obligations >2x since 2015 asSpend

10.0%to $120BB in FY2025 contract awards. Munitions contract obligations have increased 330% since Defense 15.0%

FY2010, as the Pentagon is shifting procurement toward lower-cost munitions and expanding the 5.0%0.0%

use of multiyear contracts to increase production capacity and replenish inventories depleted by .