The article highlights three defense sector companies—L3Harris, Kratos, and TransDigm—that are benefiting from rising global military spending driven by ongoing conflicts in Eastern Europe and the Middle East. L3Harris has expanded its technological footprint through partnerships with eVTOL firms and launched its first defense-focused experimental satellite in mid-August 2025, while also reporting strong earnings driven by work on the Trump administration's 'Golden Dome' project and integration with Aerojet Rocketdyne. Kratos reported a 17% year-over-year revenue increase and a successful quarter, fueled by its Valkyrie drone and a $750 million contract for the Poseidon program, with a $13 billion pipeline. TransDigm faced disappointing earnings due to issues with Airbus and lower commercial build rates, but its defense revenue rose 13% year-over-year, generating $630 million in cash flow. Despite short-term setbacks, all three companies are seen as beneficiaries of the growing global arms race, with strong long-term fundamentals and analyst support.

The global lunar lander propulsion system market was valued at $81.2 million in 2024 and is projected to reach $97.0 million by 2040, driven by rising lunar exploration, international collaboration, and advancements in propulsion technology. Chemical thrusters remain dominant due to their reliability and high thrust capacity, particularly for lunar descent and maneuvering. North America leads the market through NASA’s Artemis program, while the Asia-Pacific region is emerging as a fast-growing market with strong investments from India, China, and Japan. Key players include SpaceX, Blue Origin, Astrobotic, Intuitive Machines, ISPACE, and Frontier Aerospace. Technological developments focus on improved precision, indigenous manufacturing, and eco-efficient designs. Notable missions such as Astrobotic’s Peregrine Mission 1 (2024) have demonstrated successful precision landings using advanced chemical thrusters from Frontier Aerospace. The U.S. updated export controls in 2024 to support Artemis-related partnerships, while Europe and India are increasing investment in local propulsion capabilities to ensure supply chain resilience.

Defense spending is increasing globally due to ongoing conflicts, benefiting defense firms such as L3Harris Technologies, Kratos Defense & Security Solutions, and TransDigm Group. L3Harris reported strong earnings and achieved record revenue through expanded technological efforts, including a successful launch of its Navigation Technology Satellite-3 and a partnership with Aerojet Rocketdyne. The company is also expanding into the eVTOL space with a partnership that could lead to militarization. Kratos reported a 17% year-over-year revenue growth, driven by the success of its Valkyrie drone, and has a $13 billion pipeline with a $750 million sole-sourced Poseidon contract. TransDigm missed earnings due to issues with Airbus and lower commercial build rates, but its defense revenue grew 13% year-over-year and generated $630 million in cash flow. Despite a recent share price drop, TransDigm's defense performance presents a potential buying opportunity. Analysts remain bullish on L3Harris and Kratos, though Kratos' high P/E ratio of nearly 688 raises investment risk. MarketBeat highlights five stocks as better buys than L3Harris, which is currently rated Moderate Buy.

Global military spending increased by nearly 10% from 2023 to 2024, reaching $2.7 trillion, driven by ongoing conflicts in Eastern Europe and the Middle East. This growing defense budget is expected to benefit defense industry companies. The article highlights three key firms—L3Harris Technologies, Kratos Defense & Security Solutions, and TransDigm Group—as leaders poised to benefit from increased military spending. L3Harris recently launched its first defense-focused experimental satellite in mid-August and expanded its partnership with Joby Aviation into the eVTOL space. It reported strong Q2 2025 earnings, driven by work on the Trump administration's 'Golden Dome' project and integration with Aerojet Rocketdyne, which doubled production and deliveries. Kratos reported a 17% year-over-year revenue increase and earned above expectations, fueled by success with its Valkyrie drone and a $750 million Poseidon contract. The company now has a $13 billion pipeline and a high P/E ratio of nearly 688. TransDigm missed earnings due to commercial aerospace issues but saw a 13% year-over-year increase in defense revenue, generating $630 million in cash flow. Despite a post-earnings share drop, the company has strong analyst support and potential upside.

The Japan Cruise Missiles Market is projected to grow from $1.4 billion in 2023 to $2.1 billion by 2031, with a CAGR of 5.20% from 2024 to 2031. The market includes long-range, precision-guided missile systems developed or procured by Japan for defense and strategic purposes. Key players include Lockheed Martin, Raytheon Technologies, Northrop Grumman, Boeing, General Dynamics, MBDA, Thales Group, Israel Aerospace Industries, BAE Systems plc, and Aerojet Rocketdyne. In April 2025, Japan's Ministry of Defense awarded a ¥32.3 billion ($219 million) contract to Mitsubishi Heavy Industries for the development of a new Surface-to-Ship/Surface-to-Surface precision-guided missile, with development scheduled from fiscal year 2024 to 2032. On June 24, 2025, Japan conducted its first domestic missile test using a Type 88 surface-to-ship short-range missile at the Shizunai Anti-Air Firing Range in Hokkaido, marking a significant advancement in its military capabilities and strategic deterrence posture.