Drones are changing warfare. But defense giants are still making billions from old-school weapons – CNBC

Drones are changing warfare. But defense giants are still making billions from old-school weapons  CNBC

The world's biggest defense firms are finding that demand for traditional military equipment remains strong even as drones and AI reshape how wars are fought. Drone technology and artificial intelligence are rapidly reshaping modern warfare, but the world's biggest defense contractors are finding that demand for tanks, fighter jets and other traditional military equipment remains strong. Recent earnings from U.S. and European defense companies show conventional weapons continue to drive year-on-year growth, even alongside surging demand for advanced sensors, autonomous systems and counter-drone technology. Rather than displacing traditional weapons manufacturers, the rise of drones and autonomous warfare is creating new business for many of the same companies.

From counter-drone defenses to advanced sensors integrated into tanks and fighter jets, the technologies transforming the battlefield are also changing, or even expanding, the markets served by legacy defense giants. Lockheed Martin reported a 24% jump in revenue from its missiles business in the third quarter, while RTX secured multibillion-dollar contracts for established missile systems. In Europe, German defense supplier Renk saw orders for its military vehicle business surge 46% in the first nine months of the year. Yet, the same earnings also show how the boundaries between legacy weapons and emerging defense technology are increasingly blurred. German defense electronics company Hensoldt reported a 52% jump in revenue from its optronics business, with