Top 20 Defense Contractors in 2024

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In this article, we take a look at the top 20 defense contractors in the world, and share a detailed overview of the global defense spending patterns and the economic boom in the arms industry triggered by conflicts around the world. You can skip our analysis and head over directly to the list of the Top 5 Defense Contractors in 2024.

The world has been rocked with conflict over the last few years. The Russia-Ukraine war has gone beyond 700 days, with no immediate end in sight. In the Caucasus, Azerbaijan and Armenia continue to engage in regular exchange of fire, after the Azeris seized control of previously Armenian controlled territory in the Nagorno-Karabakh region in 2020. The Middle East is up in flames as well, in what defense analysts describe as the worst crisis in the region since the Arab Israeli War in 1973. Israel invaded Gaza in October last year, after Hamas staged a series of coordinated attacks across different parts of Israel.

While final figures for 2023 are awaited, 2022 was a record-year for defense expenditure, with global military spending reaching an all-time high of $2.2 trillion during the year, according to the Stockholm International Peace Research Institute. $961 billion were spent in the Americas, $540 billion in Asia, while Europe witnessed its steepest rise in three decades and saw its defense spending total $480 billion in 2022. On the other hand, $39 billion were spent on procuring weapons by countries in Africa, while $35 billion was incurred by Oceanic countries.

The demand for weapons has meant a boom in the arms industry. Large defense contractors like Lockheed Martin Corporation (NYSE:LMT), RTX Corporation (NYSE:RTX) and General Dynamics Corporation (NYSE:GD) are expecting the situation in Ukraine and Israel’s war against Palestinian group Hamas to drive up revenue flow.

RTX Corporation (NYSE:RTX) has received $3 billion worth of orders since Russia’s invasion of Ukraine in February 2022, that are tied with replenishing Kyiv. In October, Lockheed Martin Corporation (NYSE:LMT)’s shares rose 2% after it beat estimates and reported a higher than anticipated revenue and profit in its third quarter results. The improved financial performance was driven by a sustained demand for weapons and equipment amid geopolitical tensions.

Lockheed Martin Corporation (NYSE:LMT)’s guided multiple launch rocket system, as well as the Javelin anti-tank missiles – which the company has jointly-developed in conjunction with RTX Corporation (NYSE:RTX) – have proven pivotal in Ukraine’ war efforts against Russia.

The combat systems unit at General Dynamics Corporation (NYSE:GD), which manufactures tanks, armored vehicles, and artillery, also reported 25% higher revenue in its third quarter results in 2023 compared to the same time period a year ago. The company’s output of artillery has already increased from 14,000 rounds per month to 20,000.

Northrop Grumman Corporation (NYSE:NOC) has projected sales of between $40.8 billion and $41.2 billion in 2024, owing to an expectation of sustained demand for its weapons. In early 2023, the US Army awarded a $522 million contract to Northrop Grumman Corporation (NYSE:NOC) and Global Military Products to manufacture artillery ammunition for Kyiv. Moreover, the company’s shares are up by over 6% since the declaration of Israel’s war against Hamas in October 2023.

Top 20 Defense Contractors in 2024
Top 20 Defense Contractors in 2024

Jordan Tan / Shutterstock.com

Methodology

The top 20 defense contractors are ranked in ascending order of their defense revenue in 2022. This is the latest year for which figures for all large defense companies are available, as some of them are yet to declare their full-year 2023 financial statements. Data has been sourced from Defense News. Defense revenue includes sales to government bodies, such as the Department of Defense in the U.S. or its equivalent in another country, as well as business activities with other related contractors.

If interested, you can also take a look at the Top 20 Most Valuable Defense Companies in the World.

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Let’s now head over to the list of the top defense contractors in the world.

Top 20 Defense Contractors in 2024:

20. Dassault Aviation

Country: France

Total Revenue in 2022: $6.64 billion

Defense Revenue in 2022: $5.03 billion

Percentage of Revenue from Defense: 76%

Despite a 18% decline in defense revenue between 2021 and 2022, Dassault Aviation is one of the top defense contractors in the world. The French company is the manufacturer of Rafale multi-role fighter jets. Dassault Aviation earned over $5 billion in defense-related sales in 2022.

19. Rheinmetall AG

Country: Germany

Total Revenue in 2022: $6.75 billion

Defense Revenue in 2022: $5.06 billion

Percentage of Revenue from Defense: 75%

Rheinmetall AG is the largest defense manufacturer in Germany, and the fifth largest in Europe. Its stock price has more than doubled since Russia’s invasion of Ukraine in February 2022. Rheinmetall’s defense revenue saw a 6% increase in 2022 compared to 2021. The company’s financial performance propelled it in March 2023 to join the DAX index on the Frankfurt Stock Exchange. 

18. Booz Allen Hamilton Holding Corporation (NYSE:BAH)

Country: United States

Total Revenue in 2022: $9.26 billion

Defense Revenue in 2022: $5.9 billion

Percentage of Revenue from Defense: 64%

Booz Allen Hamilton Holding Corporation (NYSE:BAH) finds itself among the top 20 defense contractors in the world on the back of a solid financial performance in 2022. The company’s defense revenue increased by 7% compared to the previous year. Booz Allen Hamilton Holding Corporation (NYSE:BAH) develops energy weapons such as lasers, high-power microwaves, and other radio frequency technologies for the US military.

17. Amentum Services, Inc.

Country: United States

Total Revenue in 2022: $8.6 billion

Defense Revenue in 2022: $6 billion

Percentage of Revenue from Defense: 70%

Amentum is one of the largest companies in the US in terms of defense revenue. It is among the biggest non-equipment producing government services contractors in the US. 70% of its overall revenue in 2022 came from defense-related sales made to the US government.

16. Leidos Holdings, Inc. (NYSE:LDOS)

Country: United States

Total Revenue in 2022: $14.4 billion

Defense Revenue in 2022: $9.53 billion

Percentage of Revenue from Defense: 66%

Leidos Holdings, Inc. (NYSE:LDOS) is among the most valuable defense companies in the United States, with a market cap of $16.5 billion, as of February 14, 2024. The company develops complex technology solutions to meet the needs of national security and health. In September 2023, Leidos Holdings, Inc. (NYSE:LDOS) received an IT hardware contract from the US Army worth $7.5 billion.

15. China Aerospace Science and Technology Corporation

Country: China

Total Revenue in 2022: $44.93 billion

Defense Revenue in 2022: $9.61 billion

Percentage of Revenue from Defense: 21%

The China Aerospace Science and Technology Corporation (CASC) is the main contractor of Beijing’s space program. The CASC also develops tactical missile systems, launch vehicles, and ground equipment for the Chinese military. The company’s defense revenue rose 3% between 2021 and 2022, which helped the CASC climb three slots to rank as the 15th largest defense company in the world. 

14. Thales Group

Country: France

Total Revenue in 2022: $18.51 billion

Defense Revenue in 2022: $9.64 billion

Percentage of Revenue from Defense: 52%

French multinational company, Thales, has expertise in manufacturing electrical systems, as well as equipment for the defense and aerospace sectors. More than half of the company’s revenue in 2022 came from defense-related sales. The UK Ministry of Defense on February 2, 2024 signed a 15-year deal with Thales worth £1.8 billion to improve the resilience of the ships operated by the Royal Navy. 

13. Huntington Ingalls Industries, Inc. (NYSE:HII)

Country: United States

Total Revenue in 2022: $10.68 billion

Defense Revenue in 2022: $10.63 billion

Percentage of Revenue from Defense: 99%

Next on our list is Huntington Ingalls Industries, Inc. (NYSE:HII), the largest shipbuilding corporation in the United States. It is one of the contractors of the Virginia-class of submarines operated by the US Navy, and is currently working on the development of the Columbia-class, which is scheduled to enter service in 2031. Huntington Ingalls Industries, Inc. (NYSE:HII) is also spearheading the Gerald R. Ford Aircraft Carrier Program, which includes a $13.3 billion warship. Click here to read more about the program.

12. Airbus SE (AIR.PA)

Country: Netherlands/France

Total Revenue in 2022: $61.48 billion

Defense Revenue in 2022: $12.02 billion

Percentage of Revenue from Defense: 20%

Only about one-fifths of Airbus’ revenue comes from the sale of defense-related equipment, and yet that accounts for a significant monetary volume of over $12 billion. It is one of the top 20 defense contractors in 2024. In May 2022, the US Army awarded Airbus a $1.5 billion contract to provide engineering and logistical support for their UH-72A and UH-72 B Lakota fleet of helicopters. 

11. Leonardo

Country: Italy

Total Revenue in 2022: $15.5 billion

Defense Revenue in 2022: $12.87 billion

Percentage of Revenue from Defense: 83%

Italian aerospace and defense company, Leonardo, is up next on our list. It reported nearly $13 billion in defense revenue in 2022, which accounted for 83% of the company’s overall sales that year. Despite a 7% drop in revenues compared to 2021, Leonardo is one of the leading defense contractors in the world. It is part of the Global Combat Air Programme, an initiative led by the UK, Japan and Italy that is working on developing a sixth-generation fighter jet to replace the Eurofighter Typhoon.

10. China South Industries Group Corporation

Country: China

Total Revenue in 2022: $43.47 billion

Defense Revenue in 2022: $13.48 billion

Percentage of Revenue from Defense: 31%

The China South Industries Group Corporation, CSGC, is a state-owned company headquartered in Beijing’s Haidian District that serves as the backbone of China’s national defense technology industry. The CSGC specializes in information optoelectronics, advanced and light ammunition, as well as anti-terrorism devices, that are used by law enforcement agencies across China.

9. L3Harris Technologies, Inc. (NYSE:LHX)

Country: United States

Total Revenue in 2022: $17.06 billion

Defense Revenue in 2022: $13.93 billion

Percentage of Revenue from Defense: 82%

Founded in 2019 as a result of a merger between Harris Corporation and L3 Technologies, L3Harris Technologies, Inc. (NYSE:LHX) is one of the largest defense companies in the world in terms of revenue. The company’s main product offerings include wireless and night vision equipment, as well as its C6ISR systems. L3Harris Technologies, Inc. (NYSE:LHX) in December 2022 announced to acquire Aerojet Rocketdyne, a company that specializes in aerospace propulsion systems, for $4.7 billion.

8. China North Industries Group Corporation Limited

Country: China

Total Revenue in 2022: $82.78 billion

Defense Revenue in 2022: $17.96 billion

Percentage of Revenue from Defense: 22%

The China North Industries Group Corporation Limited, which operates globally as Norinco Group, is a manufacturer of tanks, firearms, artillery, aircraft, unmanned aerial vehicles, rockets, missiles, and radars. It is one of the largest defense companies in the world. In June 2020, the US government led by President Trump announced sanctions against the Norinco group and prohibited American individuals and firms from owning shares in the company.

7. BAE Systems plc

Country: United Kingdom

Total Revenue in 2022: $26.29 billion

Defense Revenue in 2022: $25.24 billion

Percentage of Revenue from Defense: 96%

British arms and aerospace corporation, BAE Systems plc is next on our list. The company generated over $25 billion in defense revenue in 2022, which was 2% less than what it earned during the previous year. Despite the dip, it is one of the top defense contractors in the world. It is the most valuable British defense company, with a market cap of $37.62 billion, as of the writing of this piece.

6. General Dynamics Corporation (NYSE:GD)

Country: United States

Total Revenue in 2022: $39.4 billion

Defense Revenue in 2022: $30.4 billion

Percentage Revenue from Defense: 77%

General Dynamics Corporation (NYSE:GD) is sixth on our list of the top 20 defense contractors in 2024. It is one of the builders of the Virginia-class of submarines operated by the US Navy, and is the primary contractor of the Columbia-class project as well. Its combat systems unit which manufactures tanks, armored vehicles and artillery, reported a 25% increase in revenue in Q3 of 2023.

Click to continue reading and see the Top 5 Defense Contractors in 2024.

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Disclosure: None. Top 20 Defense Contractors in 2024 is originally published on Insider Monkey.

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