Betting On Defense? These Stocks Could Ride The $71B Nuclear Upgrade Wave

• Washington has pledged $71 billion to modernize its missile, submarine, and stealth bomber programs. 
• The budget includes $6.1 billion for the B-21 bomber and $4.6 billion for the Sentinel system to replace older missiles and upgrade bases.
• About $16.2 billion will fund new submarines, with $1.5 billion for a new cruise missile system. 

The United States’ War Department’s expansive fiscal year 2027 budget proposal, aimed at overhauling the country’s nuclear deterrent, is likely to benefit a concentrated group of defense contractors.

Companies including BWX Technologies (BWXT), Curtiss-Wright (CW), General Dynamics (GD), Lockheed Martin (LMT), Rtx (RTX) and Huntington Ingalls Industries (HII) will gain from efforts to modernize the nuclear triad. 

Nuclear Deterrence At The Center Of Strategy

Speaking before lawmakers on Capitol Hill, Pete Hegseth, the Secretary of War, defended the administration’s approach and outlined a sweeping investment plan to strengthen land-, air-, and sea-based nuclear capabilities.

"[This budget] invests in it — $71 billion in our nuclear triad and [nuclear command, control and communications], understanding that if you get that wrong, you get everything else wrong,"

-Pete Hegseth, Secretary of War

Washington has committed $71 billion toward upgrading the Sentinel intercontinental ballistic missile program, Columbia-class submarines, and B-21 Raider stealth bombers. 

The funding plan focuses on buying systems faster, securing long-term manufacturing commitments, and fully replacing old weapons instead of making small upgrades. This reflects a major change in how the U.S. is choosing to modernize its strategic weapons.

The budget sets aside $6.1 billion for the B-21 Raider stealth bomber, which can carry both regular and nuclear weapons. It also provides $4.6 billion for the Sentinel missile system, which will take the place of the older Minuteman III missiles and upgrade missile sites across several states. 

About $16.2 billion is planned for the Columbia-class ballistic missile submarine program, which will replace the older Ohio-class submarines and become the main part of sea-based nuclear defense. Another $1.5 billion is set aside for a new long-range cruise missile that will replace current air-launched systems. 

GD, BWXT, CW, LMT, RTX - Nuclear Triad Beneficiaries 

General Dynamics (GD) is the main contractor building the Columbia-class submarines, so it is expected to gain the most from the Navy’s upgrade program. BWX Technologies (BWXT) plays a key role by supplying the nuclear reactors that power these submarines. It is the only company providing this technology, making it essential for the sea-based nuclear force.

Curtiss-Wright (CW) is a smaller supplier in the chain. It makes high-performance pumps and valves that help submarines run quietly. 

While BWXT and CW stocks have surged over 25% and 30% respectively, year-to-date, GD stock has gained over 2%. 

Lockheed Martin (LMT) leads development of the Sentinel missile and nuclear delivery systems, while RTX (RTX) supplies advanced guidance and sensor technology that supports both Sentinel and B-21 programs.

LMT stock has gained 7% year-to-date, while RTX declined by 4%. 

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