Revenues of 100 arms makers marked record high in 2024 due to Ukraine, Gaza wars: Report

The world's biggest weapons-producing companies saw a 5.9% increase in revenue from sales of arms and military services last year as demand was fed by the wars in Ukraine and Gaza as well as countries' rising military spending, according to a report released Monday.

The Stockholm International Peace Research Institute, or SIPRI, said the revenues of the 100 largest arms makers grew to $679 billion in 2024, the highest figure it has recorded.

Thirty of the 39 U.S. companies in the top 100 — including Lockheed Martin, Northrop Grumman and General Dynamics — posted increases. Their combined revenue was up 3.8% at $334 billion.

But SIPRI noted that “widespread delays and budget overruns continue to plague development and production” in major U.S.-led programs, including the F-35 fighter jet.

Twenty-three of the 26 companies in Europe, excluding Russia, saw their arms revenue increase as the continent boosted spending. Their aggregate income rose by 13% to $151 billion, fueled by demand linked to the war in Ukraine and the perceived threat from Russia.

There were notably big gains for the Czech Republic's Czechoslovak Group, whose revenue soared by 193% thanks in part to a government-led project to source artillery shells for Ukraine; and for Ukraine's JSC Ukrainian Defense Industry, which had a 41% gain.

European firms are investing in new production capacity to meet greater demand, but SIPRI researcher Jade Guiberteau Ricard cautioned in a statement that “sourcing materials could pose a growing challenge,” with restructuring of supply chains for critical minerals a potential complication in light of Chinese export restrictions.