Defense spending is ramping up globally due to ongoing conflicts and military modernization. The US defense budget could hit $1.5 trillion by 2027, and NATO is pushing members to spend 5% of their GDP by 2035. Here is a look at a few companies in the space. Lockheed Martin (LMT) had a solid Q2. Sales hit $20 billion and their backlog reached a record $230 billion. They raised full-year guidance. The F-35 program gives them stable revenue, and they have raised their dividend for 23 straight years. GE Aerospace (GE) saw Q2 revenue go up 24% to $13.3 billion. They dominate the commercial engine market and get steady cash flow from maintenance and upgrades. Their defense side is growing too, recently getting contracts for Turkish and UK military helicopters and jets. Red Cat Holdings (RCAT) is a speculative drone maker. They removed Chinese parts from their supply chain to meet US rules and are competing in the Pentagon's $1.1 billion drone program. The company is unprofitable right now and down heavily from its highs, so it carries significant risk.