Global arms companies saw record earnings last year, driven by ongoing conflicts and increased military spending worldwide. In 2024, the top 100 arms manufacturers earned 5.9% more than the previous year, bringing their combined revenue to 679 billion USD, the highest figure ever recorded. The surge in demand for weapons has been fueled by the Russia-Ukraine war, the Gaza conflict and numerous countries expanding their military capabilities, according to a report released Monday by the Stockholm International Peace Research Institute (SIPRI).
U.S. and European companies lead growth
The revenue increase was primarily driven by companies based in Europe and the United States. Of the 39 U.S. companies in the top 100, 30, including Lockheed Martin, Northrop Grumman and General Dynamics, reported revenue growth. Their combined income rose by 3.8% to 334 billion USD, despite delays and budget overruns in major U.S. defense projects such as the F-35 fighter jet program.
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In Europe (excluding Russia), 23 of the 26 companies in the top 100 increased their arms revenue, collectively earning 151 billion USD, a 13% rise. Analysts attribute this growth to heightened military spending in response to the Ukraine conflict and perceived threats from Russia.
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Significant gains for some, mixed results for others
Some companies experienced dramatic growth. The Czech Republic’s Czechoslovak Group saw a 193% surge, largely due to a government project supplying artillery shells to Ukraine. Ukraine’s JSC Defense Industry reported a 41% increase. Russian firms Rostec and United Shipbuilding Corporation also saw revenue rise by 23% to 31.2 billion USD, with strong domestic demand offsetting export limitations caused by international sanctions and parts shortages.
Israeli arms companies earned 16.2 billion USD, up 16%, as global demand remained strong despite international criticism over Israel’s actions in Gaza. Researcher Zubaida Karim noted that the conflict did not significantly impact orders for Israeli weapons, with many countries continuing to place new contracts.
In contrast, Chinese companies saw a decline, dragging total Asian arms revenue down by 1.2%. Allegations of corruption and the completion of several major contracts led to a 10% drop in revenue among China’s eight leading arms firms.
This report highlights how geopolitical tensions and regional conflicts continue to drive the global arms trade, creating record profits for some of the world’s largest defense companies.