Golden Dome Is a $185 Billion Program, but Anduril Is Private. Here Are the 3 Public Companies Building It.

Geopolitical tensions are high, and the U.S. is investing heavily to ensure its national security. Central to this is the Golden Dome Initiative, a multi-layered homeland missile defense system designed to intercept aerial attacks from adversaries.

The Pentagon's ambitious Golden Dome initiative could be one of the largest defense programs in U.S. history, with a projected cost starting around $185 billion. Over the long term, maintenance, replenishment, and sustainment could cost $1.2 trillion over 20 years, according to the Congressional Budget Office.

Privately held Anduril is helping develop the system, but public-market investors still have opportunities to participate. Lockheed Martin (NYSE: LMT), RTX Corporation (NYSE: RTX), and Northrop Grumman (NYSE: NOC) are three defense leaders positioned to benefit as the Golden Dome takes shape.

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The Golden Dome program is an ambitious missile defense shield for the U.S.

On Jan. 27, 2025, President Donald Trump signed an executive order to develop and deploy a next-generation, layered missile defense shield for the United States. The One Big Beautiful Bill Act formalized and budgeted the program, providing initial funding when Congress passed it on July 4, 2025.

The Golden Dome's goal is ambitious: to protect the entire continental U.S., or over 3 million square miles, against any aerial attack. The program will use low-Earth-orbit and medium-Earth-orbit satellites that serve as thermal-camera systems to detect hypersonic and cruise missiles flying below early-warning radars. Once identified, interceptor rockets will destroy missiles in mid-air.

Building a massive system like this requires significant resources and expertise, which is why so many defense contractors are involved.

What Lockheed Martin, RTX, and Northrop Grumman bring to the Golden Dome program

Lockheed Martin manufactures air- and missile-defense interceptors, including the PAC-3 MSE and Terminal High Altitude Area Defense (THAAD) systems, and was selected as the sole prime contractor for the Missile Defense Agency's (MDA) Next Generation Interceptor program.

Lockheed also builds the command-and-control, battle-management, and communications systems that connect sensors to interceptors and provide military commanders with real-time tracking. Lockheed has 7-year contracts for PAC-3 and THAAD, and is adding 2 million square feet of facility space to support these long-term deals.

RTX Corporation, Raytheon's parent company, provides air- and missile-defense effectors and sensors for layered defense. Its systems include the Standard Missile (SM) family and Patriot interceptors, as well as ground and naval radars and counter-drone systems. RTX's biggest strength is its radar semiconductor technology, which lets radars see far and wide and cut through clutter.

As part of its role in the Golden Dome and broader missile defense, RTX converted several agreements into binding undefinitized contract actions (UCAs), allowing it to begin work before fully negotiating all terms and specifications. These agreements total $70 billion and include 5-year UCAs for its SM-6 and SM-3 IB, and a 7-year UCA for its Tomahawk cruise missiles.

Because hypersonic missiles can fly under traditional ground-based radars, Northrop Grumman provides low-orbit tracking satellites equipped with heat-sensing cameras that can spot the hot exhaust and heat of missiles after launch. It also leads in heavy solid rocket motors that power long-range interceptors and boost them into the upper atmosphere.

In the third quarter, Northrop was awarded a $1.6 billion contract from Lockheed for propulsion and missile components to support the multi-year PAC-3 interceptor ramp. Northrop is expanding its facilities in Utah, Maryland, Arizona, and Florida to add 1 million square feet of manufacturing capacity for solid rocket motors, hypersonic propulsion systems, and other space systems.

Defense stocks should see tailwinds from rising defense budgets

While some worry about the Golden Dome program's future funding, RTX notes in its recent regulatory filing that its UCA contracts include contractual recovery remedies and downside protections. Lockheed Martin CEO Jim Taiclet noted similar capital-recovery terms if future funding cuts or agreement terms change.

The Golden Dome initiative is a highly ambitious program to shield the U.S. from incoming threats and is a massive undertaking costing around $185 billion. For defense prime contractors Lockheed Martin, RTX Corporation, and Northrop Grumman, this massive program provides a multi-decade revenue stream, providing a tailwind for the stocks as the U.S. ramps up defense spending.

Courtney Carlsen has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Lockheed Martin, Northrop Grumman, and RTX. The Motley Fool has a disclosure policy.