As Russia’s war in Ukraine grinds on, global weapons profits keep rising, new report finds

The world’s 100 largest arms manufacturers saw their combined revenue rise by 5.9 percent in 2024, reaching a record $679 billion, according to a new report from the Stockholm International Peace Research Institute (SIPRI).

SIPRI links the surge in revenue to heightened demand driven by the war in Ukraine, the conflict in Gaza, and broader geopolitical tensions at both the global and regional levels, alongside steadily increasing military spending.

Most of the growth came from U.S. and European companies. Arms manufacturers in nearly every region reported rising sales, with the exception of Asia and Oceania, where problems in China’s defense industry pushed revenues down. SIPRI analysts attribute the decline in Chinese firms’ sales to major weapons contracts being canceled or delayed in 2024 amid corruption scandals.

Buoyed by rising income and new orders, many weapons manufacturers have begun expanding production lines, increasing capacity, and acquiring competitors or spinning off new subsidiaries.

U.S. companies in SIPRI’s top 100 recorded $334 billion in total revenue in 2024, a 3.8 percent increase. Thirty of the 39 American firms on the list boosted their weapons sales, including Lockheed Martin, Northrop Grumman, and General Dynamics. But SIPRI notes that severe delays and cost overruns continue to hinder development under several major programs, among them the F-35 fighter jet, the Columbia-class submarine, and the Sentinel intercontinental ballistic missile.

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In Europe, 23 of the 26 companies included in the ranking reported higher sales. Their combined revenue rose 13 percent to $151 billion, driven by the war in Ukraine and the perceived threat from Russia. The steepest increase came from the Czech company Czechoslovak Group, whose revenue in 2024 jumped 193 percent to $3.6 billion thanks to weapons orders for Ukraine.

The report notes that European defense firms are investing in new production capacity to meet growing demand. But problems securing raw materials — especially critical minerals — could complicate Europe’s rearmament plans.

Despite sanctions, Russia’s Rostec and United Shipbuilding Corporation also increased their combined arms revenue by 23 percent, reaching $31.2 billion. Domestic demand has been strong enough to offset losses from declining arms exports, according to the report. “Besides sanctions, Russian arms companies are facing a shortage of skilled labor. This could slow production and limit innovation,” one SIPRI researcher said. “However, we need to be cautious making such predictions, as Russia’s arms industry has proved resilient during the war in Ukraine, contrary to expectations.”

For the first time, nine Middle Eastern defense manufacturers entered the ranking. Together, they brought in $31 billion, and overall weapons revenue in the region grew 14 percent.

Among the companies that expanded sales were Israel’s Elbit Systems, Israel Aerospace Industries, and Rafael, which increased their combined arms revenue by 16 percent to $16.2 billion. “The growing backlash over Israel’s actions in Gaza seems to have had little impact on interest in Israeli weapons,” another researcher noted. “Many countries continued to place new orders with Israeli companies in 2024.”