The world's top weapons manufacturers saw their revenues grow 5.9% last year, reaching a record $679 billion, driven by wars in Ukraine and Gaza and rising global military budgets, according to a report released Monday by the Stockholm International Peace Research Institute (SIPRI).
United States
The increase was led by European and United States companies, while Asia and Oceania saw a slight decline due to issues in China's arms industry. In the United States, 30 of 39 top firms, including Lockheed Martin, Northrop Grumman, and General Dynamics, reported higher revenue, totaling $334 billion despite delays and budget overruns in major programs such as the F-35 fighter jet.
Europe (excluding Russia)
European arms makers, excluding Russia, collectively earned $151 billion, up 13%, reflecting increased spending amid the war in Ukraine and concerns over Russian threats. Some standout performers included the Czech Republic's Czechoslovak Group, whose revenue soared 193% thanks to government artillery contracts for Ukraine, and Ukraine's JSC Ukrainian Defense Industry, up 41%.
Russia-Ukraine and Israel-Palestine
Russian companies Rostec and United Shipbuilding Corporation saw revenues rise 23% to $31.2 billion, with domestic demand offsetting declining exports despite sanctions. In the Middle East, Israeli firms recorded a 16% increase to $16.2 billion, showing sustained global interest in their weapons despite backlash over Gaza.
Asia and Oceania (challenges for the arms industry)
In contrast, Asia and Oceania experienced a 1.2% drop in arms revenue to $130 billion, largely due to Chinese firms facing corruption investigations that delayed or canceled contracts. SIPRI warned that meeting growing demand could be complicated by supply chain issues and restrictions on critical minerals, highlighting challenges ahead for the global arms industry.