3 Under‑the‑Radar Defense Contractors Quietly Building Multiyear Backlogs That Will Outlast Trump's Iran War Strategy

The 2026 conflict in Iran has accelerated immediate defense demand, particularly for giant defense contractors, but the backlogs for smaller defense stocks such as Textron (NYSE: TXT), Huntington Ingalls (NYSE: HII), and Rocket Lab (NASDAQ: RKLB) are underpinned by structural, multiyear programs that extend far beyond any single regional engagement.

Textron and Huntington Ingalls have seen their shares rise more than 38% and more than 79% so far this year, respectively, while Rocket Lab's stock has soared more than 352%. Here's why big backlogs can drive share growth over the next few years for these defense companies.

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1. Textron: Growing military and corporate orders

Textron isn't a household name, but several of its brands are. The company manufactures Bell helicopters and vertical-lift vehicles, Cessna and Beechcraft aircraft, Pipistrel electric and light aircraft, Lycoming aircraft engines, Jacobsen high-end mowing equipment, Kautex fuel tanks, and E-Z-GO golf carts and personal utility vehicles.

In 2025, Textron reported $14.8 billion in revenue, up 8%, and earnings per share (EPS) of $5.12, up 18%. In 2026, the company predicts revenue of $15.5 billion, up 4.7%, and EPS of $5.39 to $5.59, up 7% at the midpoint. The company has a backlog of $18.8 billion, much of it weighted toward long-cycle platforms in aviation and next-generation electric vertical-lift products.

A major driver of that backlog is the U.S. Army's MV-75 program, which includes Textron's Bell V-280 Valor, a tiltrotor aircraft that pairs helicopter-like vertical takeoff with airplane-like speed and range. The MV-75 program is a multi-decade modernization effort to replace the Black Hawk fleet, with the bulk of this contract to be realized throughout the 2030s, regardless of current Middle East stability.

The company's backlog is also tied to commercial aviation through its Cessna and Beechcraft jets. The Federal Aviation Administration (FAA) certified the Citation Ascend this past November and CJ3 Gen2 in October, and Textron should benefit from the refresh cycle by corporations' flight departments.

2. Huntington Ingalls: Doing more than just staying afloat

Huntington Ingalls is the largest shipbuilder in the U.S. and the world's largest producer of unmanned underwater vehicles.

As of the end of 2025, the company reported a total backlog of $53.1 billion. That's more than five times its current annual revenue, which was reported at $12.5 billion in 2025, up 8.2% from 2024. Its EPS grew 10.2% to $15.39.

This backlog is roughly distributed across Huntington Ingalls' three primary divisions: Newport News shipbuilding, which focuses on the nuclear-powered aircraft carrier fleet (Ford-class) and Virginia-class and Columbia-class submarines. This segment accounts for the largest share of the backlog due to the seven-to-10-year construction cycles of these vessels. The Ingalls shipbuilding segment is responsible for amphibious assault ships and Arleigh Burke-class destroyers, and the mission technologies segment is responsible for unmanned systems, artificial intelligence (AI), and electronic warfare contracts.

The company achieved a 14% increase in shipbuilding throughput in 2025 and has set a target for an additional 15% increase for 2026 to eat into that massive backlog. The company's backlog is stable due to the need to maintain and upgrade the U.S. fleet, which comprises around 465 vessels. That includes a Trump administration push to grow the number of non-combat ships.

3. Rocket Lab: Its business continues to take off

Rocket Lab has space and defense contracts, but the two intertwine as well. At the end of 2025, the company had a backlog of $1.85 billion, mainly from space systems contracts, including $816 million from the Space Development Agency to build 18 satellites. These satellites are for the Proliferated Warfighter Space Architecture, a permanent orbital constellation designed for global missile warning and tracking.

The company's medium-lift rocket, Neutron, is scheduled for its first launch in late 2026. Its backlog includes numerous multi-launch agreements from commercial satellite constellations that need reliable, frequent access to space to maintain global internet and communications networks, providing revenue visibility through the end of the decade.

In 2025, Rocket Lab reported revenue of $602 million, up 38%. It reported an EPS loss of $0.37, compared with an EPS loss of $0.38 in 2024.

Taking the long-term view

The strategic positioning of Textron, Huntington Ingalls, and Rocket Lab demonstrates that while geopolitical volatility in the Middle East provides a near-term tailwind, their investment theses are anchored in deep, multiyear structural cycles. All three have revenue streams that extend beyond current defense needs.

Textron's dominance in the corporate jet refresh cycle provides a stable growth trajectory into the 2030s. Similarly, Huntington Ingalls faces a staggering backlog driven by the essential, long-term need for U.S. naval modernization. Rocket Lab diversifies this defense-industrial landscape by bridging the gap between national security and commercial space infrastructure.

James Halley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Rocket Lab. The Motley Fool recommends Textron. The Motley Fool has a disclosure policy.