Profiting from conflict: Arms companies gain billions from war and violence

New data released by the Stockholm International Peace Research Institute (SIPRI) shows that revenue from the sale of weapons and military services by the world’s top 100 arms-producing companies reached a record $679 billion in 2024.

The institute’s recent report states that the wars in Gaza and Ukraine, as well as global and regional geopolitical tensions and rising military expenditures, increased revenue from arms and military services sold to both domestic and international clients by 5.9% compared to the previous year.

A large portion of the global increase was attributed to companies based in Europe and the U.S., although annual increases were observed in all regions except Asia and Oceania.

U.S. arms leaders included Lockheed Martin, Northrop Grumman, and General Dynamics. Combined arms revenue for the top 100 companies in 2024 grew 3.8% to $334 billion, with 30 of 39 U.S. companies in the ranking reporting increased revenue.

However, SIPRI noted that extensive delays and rising budgets continue to affect key projects such as the F-35 fighter jet, Columbia and Virginia-class submarines, and the Sentinel intercontinental ballistic missile.

Elon Musk’s SpaceX, after more than doubling its arms revenue compared to 2023 to $1.8 billion, appeared for the first time on the list of major global military manufacturers.

Excluding Russia, 26 European arms companies were among the top 100, with 23 reporting increased arms sales revenue. Their combined military revenue rose 13% to $151 billion.

The Czechoslovak Group (based in the Czech Republic) recorded the largest percentage increase among the top 100, with revenue rising 193% to $3.6 billion due to artillery shell production for Ukraine.

Meanwhile, as the war in Ukraine continues, Ukrainian defense company JSC increased its arms revenue by 41% to $3 billion.

The report states that European arms companies have been investing in new production capacities to counter Russia, but warned that supply chain issues, especially dependency on critical minerals, could pose growing challenges.

Russian arms companies in the ranking include only Rostec and United Shipbuilding Corporation. Despite Western sanctions over the war in Ukraine, their combined arms revenue increased 23% to $31.2 billion.

In Asia and Oceania, arms manufacturers still recorded $130 billion in revenue despite a 1.2% decline compared to 2023.

This regional drop was mainly due to a 10% decrease in arms revenue among eight Chinese companies, with Norinco, China’s main ground systems manufacturer, posting the largest decline at 31%.

Japanese and South Korean arms manufacturers, however, saw increased sales due to strong demand from European customers and domestic clients amid heightened tensions over Taiwan and North Korea.

• Five Japanese companies in the ranking increased combined arms revenue by 40% to $13.3 billion.
• Four South Korean producers saw revenue jump 31% to $14.1 billion, with the largest, Hanwha Group, posting a 42% increase, more than half from arms exports.

Israeli arms profiting from genocide in Gaza

Three Israeli arms companies in the ranking increased arms revenue by 16% to $16.2 billion amid the ongoing genocidal war in Gaza, which has resulted in over 70,000 Palestinian deaths and the destruction of much of the besieged territory.

• Elbit Systems: $6.28 billion profit
• Israel Aerospace Industries: $5.19 billion profit
• Rafael Advanced Defense Systems: $4.7 billion profit

Five Turkish companies were also among the top 100, marking a record. Their combined arms revenue reached $10.1 billion, a 11% increase.

Military companies from the UK, France, Germany, Italy, India, Taiwan, Norway, Canada, Spain, Poland, and Indonesia were also included in the ranking.