The CSIS estimated Operation Epic Fury burned through $3.7 billion in munitions in its first 100 hours. What does that actually mean for defense investors?

I've been trying to think clearly about the Iran conflict and what it actually means for defense holdings, because most of the coverage I'm reading focuses on the macro drama and not the supply chain reality.

The Center for Strategic and International Studies published an estimate this week: the first 100 hours of Operation Epic Fury cost approximately $3.7 billion, with $3.5 billion of that unbudgeted. The biggest line item by far is munitions replacement, specifically Tomahawks, SM-6 interceptors, PAC-3 missiles, and precision guided munitions.

RTX makes the Tomahawk and the PAC-3. LMT makes the LRASM and the Patriot upgrades. NOC makes the AARGM-ER. These aren't broad defense sector names. These are the specific companies whose products are physically being consumed right now in an active conflict.

The pattern from prior US conflicts: the initial spike prices in the headlines. The durable re-rating happens 6 to 18 months later, when the replenishment contracts come through and show up in revenue. That's the stage I think we're entering into now with this conflict.

One complication worth flagging: AeroVironment (AVAV) reports tonight, and it's a messier situation. The BlueHalo acquisition inflated the revenue comparison significantly (182% YoY growth expected), but AVAV has missed EPS in 3 of the last 4 quarters. There's also an unresolved contract question that the market is treating as binary.

Anyone else watching the defense sector through this lens, or are most people just treating it as a short-term geopolitical trade?