March marked a pivotal month for U.S. Aerospace & Defense as Operation Epic Fury entered its second month, fundamentally reshaping procurement priorities and driving unprecedented defense spending proposals. Markets priced in prolonged Strait of Hormuz disruption, adding an estimated $15–$20 per barrel risk premium, while the conflict created the most significant commercial aviation disruption since COVID-19, with carriers rerouting around Middle East airspace and absorbing surging fuel and war risk insurance costs.
On the policy front, the Pentagon announced framework agreements with BAE Systems, Lockheed Martin, and Honeywell to dramatically expand munitions production and place the U.S. military on a "wartime footing," including a $500 million Honeywell commitment across navigation systems, missile actuators, and electronic warfare products, and a framework to quadruple PrSM production capacity.
Mesirow Financial, Inc., member FINRA, SIPC.