A sharp increase in the revenues of arms manufacturers is reported by the Stockholm Peace Research Institute (SIPRI) in its latest report with data for 2024. A record 679 billion. dollars despite the problems faced by some of the leading companies in the military sector, both in the US and in China.
For the first time since 2018, all companies in the top five reported revenue growth:
In first place is Lockheed Martin with 64.6 billion. dollars of revenue for 2024.
Next is RTX with $43.6 billion.
In third place is Northrop Grumman with $37.8 billion.
The only non-American company in the top five is Britain's BAE Systems with $33.7 billion. revenues.
General Dynamics also entered the Top 5 with $33.6 billion.
From the top, Boeing dropped, which is sixth with a 4.6% drop in revenues, and immediately behind them is the Russian "Postex".
Πproblems in the US and China
Makar expects nearly half of arms revenues for 2024 to be concentrated in the US ($334 billion) and 30 out of 39 American Companies in the Top 100 of the SIPRI to report growth in revenues, experts note that key programs such as the modernization of the F-35 fighter jets, the Columbia-class submarines and the Sentinel intercontinental ballistic missile are plagued by delays and growth in revenues, which create serious uncertainty about when they will be included.
At the same time, Russia entered the Top 100 of the military industry for the first time with 1.8 billion dollars in revenue in this business line.
The situation is no better in China, which is emerging as the main geopolitical competitor of the United States. The country is among 8 companies in the SIPRI ranking, with an average 10 percent decline in revenue. ΠThe profits of the main manufacturer of ground military systems NORINCO have fallen by as much as 31%.
According to the institute, this is related to major corruption scandals surrounding military orders, which have led to the cancellation of contracts. "This deepens uncertainty about the state of China's military modernization initiatives and when the new capabilities of the armed forces will become a reality", commented Han Tian of SIPRI.
Against this backdrop, the military industries of Japan and South Korea are operating at full capacity and their revenues are growing - by 40% and 50% respectively. 31%.
Is Europe capable of rearming itself?
Tokyo and Seoul stand to gain a lot from the increased demand for modern military systems in Europe. The Old Continent is undergoing a massive rearmament and expansion of weapons production capacity against the backdrop of the war in Ukraine and fears that Russia could reach out to other countries on the Old Continent.
23 out of a total of 26 European military companies increased their revenues, with the Czech Republic seeing the biggest jump in the entire ranking. Czechoslovak Groh - 193% to 3.6 billion dollars. The company produces artillery shells for Ukraine. Namely, the state-owned military conglomerate of the attacked by Russia also increases revenues to 3 billion dollars.
German military giants report growth in sales by more than a third to almost 15 billion. euro, where the greatest interest is aroused by technical systems for air defense, armored vehicles and missiles.
However, the SIRPRI warns that the supply of raw materials is becoming a problem for European arms companies - Airbus and the French Safran relied heavily on titanium from Russia before the war and it is necessary to look for alternative suppliers, and China gives It is clear that it can stop the export of critical minerals. This could potentially lead to delays and cost-cutting of various projects in Europe.
Meanwhile, despite the sanctions and the perceived lack of labor, the Russian "Postex" and "United Construction Corporation" reported a 23% increase in revenue to $31.2 billion. The engine is needed at the front, which completely replaces the lost output. The SIRPI emphasizes that the Russian military industry has proven to be more resilient than expected during the war.