10 Biggest Defense Contractors In The World

When I hear the word “defense contractor,” I have to admit that brands behind the 10 biggest defense contractors in the world (or even the top 100) didn’t cross my mind. Instead, I am immediately reminded of the hijinks that two twenty-something guys embarked in the movie “War Dogs.” The film, which starred Jonah Hill and Miles Teller, was based on a real-life story of two small-time, intrepid arms dealers that outbid these defense behemoths (that we’re about to rank later) on military contracts for the wars that the US engaged in. An hour into the movie, I was interested about how to become a defense contractor (easily searchable on Google, by the way) and deal my way into a few million dollars, until I saw the ending: the duo was taken down by the authorities over acts of fraud they committed to secure the arms deals.

Well that’s a problem that these 10 companies won’t have, at least not yet. These giants are on the other end of the spectrum in the military industry: they produce cutting-edge weapons and war machines to America’s armed forces, which had about $600 billion in its budget just for 2015. Each of these companies: Airbus Group SE (EPA:AIR), BAE Systems plc (LON:BA), Boeing Co (NYSE:BA), General Dynamics Corporation (NYSE:GD), L3 Technologies Inc (NYSE:LLL), Leonardo SpA (BIT:LDO), Lockheed Martin Corporation (NYSE:LMT), Northrop Grumman Corporation (NYSE:NOC), Raytheon Company (NYSE:RTN), and Thales SA (EPA:HO), have earned at least $7 billion in defense-related revenues in 2015. Yes, including the two commercial airplane makers you saw on this list.

The combined defense-related sales of these 10 companies would be equivalent to about a third of the 2015 budget of the US military, or on a more amazing note, 5% of the entire US federal budget for that year. But of course, these companies also have deals with numerous militaries (and perhaps a handful of private armies?) around the world, including the 11 African Countries with the Highest Military Strength, among other countries both rich and poor. In fact, for of these top-grossing defense companies are based in Europe, which is also a powerhouse when it comes to military might.

Insider Monkey has compiled full-year data on the defense-related revenues of each company, along with an estimate of how much of the company’s income is from defense. Which is interesting to know because the list has companies wholly dedicated to military products and services, as well as other companies that treat the defense business as a side racket (and just imagine what the overall revenue is for such companies). All monetary values indicated on this list of the 10 biggest defense contractors in the world are as of the end of 2015.

10. Thales SA (EPA:HO)

Thales makes the SPECTRA ballistic helmet for the French army and the Watchkeeper drone for the British army. This French company, which operates in about 50 countries and is partially owned by the French government, also sells short-range missiles through its Thales Air Defence unit. Thales earned $7.86 billion in defense revenues, a big amount but actually only half of the company’s total sales.

9. L3 Technologies Inc (NYSE:LLL)

Formerly named L-3 Communications Holdings until the end of last year, L3 Technologies doesn’t exactly make weapons, but it is behind a lot of devices and services that support the military’s command and control, communications, intelligence, surveillance, reconnaissance, and training activities. For a company that had been sued for defective holographic sights and was once stopped from contract work with the feds, its $8.77 blliion in defense revenues (84% of total revenues) shows how vital L3 is to the military.

8. Leonardo SpA (BIT:LDO)

Who thought Italy has a top-ranking defense company? Named after the famed Renaissance inventor Leonardo Da Vinci, the company is a maker of helicopters and border defense systems, as well as space electronics and aeronautics products. The Italian company raked in $9.32 billion in defense revenues, accounting for about 65% of its total revenue.

7. Airbus Group SE (EPA:AIR)

More known for the huge commercial airplanes you might have flown on once or twice and the rivalry with Boeing, Airbus is also a major player in the defense scene, with $12.78 billion in earnings (albeit just 18% of total revenues) coming from military contracts. Airbus doesn’t have weapons, but it has airplanes repurposed for aerial refuelling and tactical airlift operations.

6. Northrop Grumman Corporation (NYSE:NOC)

Unlike the previous three entries, which mainly provided logistics support for the military, Northrop Grumman’s bread and butter is strong weaponry, such as B2-Spirit stealth bombers, high-energy laser systems, and various drones. The company, which earned $17.69 billion in defense revenues (75% of total revenues), also provides radar and surveillance systems, as well as support for the U.S. ballistic missile program.

5. General Dynamics Corporation (NYSE:GD)

Largely known as the creator of the popular F-16 fighter planes (now owned by rival Lockheed Martin), General Dynamics, next on our list of biggest defense contractors in the world, has since shifted its focus into land defense, with heavy-armor products such as M1 Abrams tanks and Stryker combat vehicles. The company took in $19.15 billion in defense sales (61% of total revenue) mainly by selling these tanks, which is why it is considered one of biggest defense contractors in the world.

4. Raytheon Company (NYSE:RTN)

Raytheon, the number four on our list of biggest defense contractors in the world, mainly thrives on its missiles business, with at least 18 types of missiles for sale,  including the popular Tomahawk and Patriot weapons. The company’s other sources of its $21.62 billion in defense revenues (93% of total sales) include products such as radars, satellite sensors, communications systems, and air traffic control systems.

3. BAE Systems plc (LON:BA)

The third place on our list of biggest defense contractors in the world goes to BAE Systems, Britain’s biggest military contractor, has a wide array of weapons offerings, including Typhoon fighters, Tornado fighter-bombers, unmanned drones, M113 armored personnel carriers, Challenger tanks, Astute class nuclear submarines, Type 45 air defense destroyers, and Queen Elizabeth class aircraft carriers. That spread of weaponry netted the company $25.28 billion in defense revenues, 92% of total revenues.

2. Boeing Co (NYSE:BA)

You mostly knew of its planes, but Boeing is also a major defense contractor. Unsurprisingly, Boeing’s major military products involve the sky, such as bombers, fighters (like the F-15), air tankers, drones, missiles, spy planes and even spaceplanes in the past. All that aircraft netted Boeing some $30.39 billion in defense revenues, which is amazingly only 32% of total revenues.

1. Lockheed Martin Corporation (NYSE:LMT)

Perhaps the biggest name in the military-industrial complex, Lockheed Martin has produced countless weapons for the military, such as F-22 and F-35 fighter jets, C-130 transport aircraft, U-2 reconnaisance jets, Hellfire and Javelin missiles, and many more. The company’s reputation as an innovator in the defense industry is reinforced by the popularity of its advanced development projects program called “Skunk Works,” now a term widely used for innovation units within huge companies. With $40.60 billion in defense revenues (88% of the total amount), Lockheed Martin leads this list of the 10 biggest defense contractors in the world.

Disclosure: none