Top 12 Biggest Defense Contractors in America in 2017

The top 12 biggest defense contractors in America in 2017 amassed over 240,000 contracts from the Department of Defense alone and get billions of dollars from the government for various projects. Given that the United States has the largest military and defense budgets in the world, at $700 billion, many companies that are providing services and equipment for the military are well positioned to earn money that they can also use on research and development, which in turn makes them more competitive and attractive overseas. Because of these companies’ strong positions, the biggest defense contractors in America have been at the top of the list for years. 

The top 12 biggest defense contractors in America in 2017 as well as their peers are well-positioned to enjoy further growth, as military spending is expected to increase under the new White House administration, which has made strengthening the U.S military one of its priorities. Just last month, the Senate passed a defense policy bill worth $700 billion, which includes $640 billion for basic Pentagon operations and $60 billion for overseas war actions in Iraq, Syria, Afghanistan, and other regions. The new budget is significantly higher than this year’s figure of $589 billion and is above the defense budgets passed during any year of the Obama administration, when the highest amount was $691 billion approved for 2010.

Given that there have been many global tensions lately, which are expected to continue to persist in the foreseeable future, the top 12 biggest defense contractors in America in 2017 should enjoy more contracts being awarded. The U.S government has signaled that the US Navy and the US Air Force should increase their spending and acquire new assets. The U.S is currently facing tensions in the South China Sea, where China is building artificial islands with military installations on them as a display of force and to extend its military capabilities. The U.S and its allies in the region will have to strengthen their own positions and conduct more surveillance and patrolling operations. The U.S also provides military support to Saudi Arabia, which is currently in conflict with Yemen. Russia and Ukraine are still in conflict over the annexation of Crimea and engaged in military operations in eastern Ukraine, and the US Senate has authorized providing assistance and weapons to Ukraine. Moreover, North Korea is a major threat to the U.S and the rest of the world, advancing its development of nuclear missiles. The Islamic State remains a major threat in Syria, Iraq, and Afghanistan.

Pavel Vakhrushev/Shutterstock.com

Pavel Vakhrushev/Shutterstock.com

All these tensions and threats suggest that the U.S government will boost military spending after years of slowdown. Between 2010 and 2017, the US Department of Defense’s budget was cut to $589 billion from $691 billion. During the same period, global defense spending also fell to $1.76 trillion from $1.77 trillion, but in the last three years it has registered some growth. In this way, some companies among the top 12 biggest defense contractors in America in 2017 are also some of the 10 biggest defense contractors in the world, having gone overseas to find sales opportunities, mainly in the Middle East.

Let’s now take a look at the top 12 biggest defense contractors in America in 2017 based on the total value of contracts awarded by the Department of Defense, according to information provided by the US General Services Administration. Surprisingly or not, while the bulk of the biggest defense contractors in America in 2017 are defense companies, the list also includes companies from other industries.

12. UnitedHealth Group Inc (NYSE:UNH)

Total Value of Contracts: $2.89 billion

UnitedHealth Group Inc (NYSE:UNH) was awarded a total of 240 contracts last year. As a provider of health benefits, UnitedHealth Group Inc (NYSE:UNH) provides health care services for nearly 3 million active duty and retired military servicemen and their families in 21 states.

Ken Wolter/Shutterstock.com

Ken Wolter/Shutterstock.com

11. Bechtel Group

Total Value of Contracts: $3.03 Billion

Bechtel Group is an engineering and construction firm that has been a defense contractor for the U.S and its allies for around 50 years. The company was awarded 102 contracts last year. In July 2017, the Bechtel Group obtained the contract to supply two of its Bechtel A1B reactors for a new US Navy nuclear ship, the Gerald R. Ford.

Digital Storm/Shutterstock.com

Digital Storm/Shutterstock.com

10. Humana Inc (NYSE:HUM)

Total Value of Contracts: $3.60 Billion

Another one of the top 12 biggest defense contractors in America in 2017 is Humana Inc (NYSE:HUM), another provider of health insurance that has obtained 247 contracts from the US Department of Defense. Humana Inc (NYSE:HUM) and other health insurers provide military services under the TRICARE program. The company covers the TRICARE South Region, which includes around 3.08 million beneficiaries. Humana Inc (NYSE:HUM)’s TRICARE South Region five-year contract was extended for a sixth year and the company was also awarded the TRICARE East Region contract that commenced on October 1.

9. Huntington Ingalls Industries Inc (NYSE:HII)

Total Value of Contracts: $4.43 Billion

Huntington Ingalls Industries Inc (NYSE:HII) is one of the largest military shipbuilding companies in the U.S, so it mainly conducts its business with the US government. The Department of Defense awarded Huntington Ingalls Industries Inc (NYSE:HII) 2,780 contracts in 2016, which include the building of amphibious assault and expeditionary ships, the National Security Cutters for the US Coast Guard. Huntington Ingalls Industries Inc (NYSE:HII) was also commissioned to build the nuclear aircraft carrier USS Gerald R. Ford that was delivered to the US Navy in the second quarter of 2017.

Pixabay / Public Domain

Pixabay / Public Domain

8. L3 Technologies Inc (NYSE:LLL)

Total Value of Contracts: $4.74 Billion

L3 Technologies Inc (NYSE:LLL) was awarded 7,238 contracts by the US Department of Defense last year. L3 Technologies Inc (NYSE:LLL) provides Intelligence, Surveillance and Reconnaissance systems, aircraft modifications, logistics and maintenance, night vision and image intensification equipment, and security and detection systems. In 2016, L3 Technologies Inc (NYSE:LLL) generated 70% of its sales from the US Department of Defense.

Burben/Shutterstock.com

Burben/Shutterstock.com

7. BAE Systems Plc

Total Value of Contracts: $5.06 Billion

BAE Systems Plc is an international technology-led provider of defense, aerospace and security solutions with operations in over 40 countries. In the U.S, the company has a subsidiary, BAE Systems, Inc., which obtained 10,930 contracts from the US Department of Defense with a total value of $5.06 billion, making it the seventh-largest among the top 12 biggest defense contractors in America in 2017. One of the recent contracts awarded to BAE Systems is a 22-month, $76 million contract to develop and provide life-cycle maintenance of new and existing communication and electronic platforms for the Naval Warfare Center Aircraft Division.

6. United Technologies Corporation (NYSE:UTX)

Total Value of Contracts: $6.53 Billion

United Technologies Corporation (NYSE:UTX) provides technology products and services to the building systems and aerospace industries. It was awarded 22,434 contracts from the Department of Defense last year. United Technologies Corporation (NYSE:UTX)’s sales to the US government amounted to $1.4 billion during the second quarter of 2017, which represented around 9% of its total sales.

njaj/Shutterstock.com

njaj/Shutterstock.com

5. Northrop Grumman Corporation (NYSE:NOC)

Total Value of Contracts: $10.77 Billion

Northrop Grumman Corporation (NYSE:NOC) received 10,476 contracts from the US Department of Defense in 2016. As a global security company, Northrop Grumman Corporation (NYSE:NOC) provides solutions and technologies in the fields of autonomous systems, cyber, command, control, communications and computers, intelligence, surveillance and reconnaissance. Northrop Grumman Corporation (NYSE:NOC) generates the bulk of its revenue from the US Department of Defense. In July, the company was awarded a $409 million contract for next-gen thermal, power, and controls.

Michael Fitzsimmons/Shutterstock.com

Michael Fitzsimmons/Shutterstock.com

4. General Dynamics Corporation (NYSE:GD)

Total Value of Contracts: $12.72 Billion

General Dynamics Corporation (NYSE:GD), which received 24,650 contracts from the US Department of Defense last year, generates roughly 60% of its revenue from the US government. Among General Dynamics Corporation (NYSE:GD)’s contracts is one for 15 Virginia-class submarines scheduled for delivery through 2023 and for seven DDG-51 destroyers scheduled through 2022.

Dan Simonsen/Shutterstock.com

Dan Simonsen/Shutterstock.com

3. Raytheon Company (NYSE:RTN)

Total Value of Contracts: $12.77 Billion

Raytheon Company (NYSE:RTN) has several business segments, including integrated defense systems, intelligence information and services, missile systems, space and airborne systems, and Forcepoint. The company was awarded 11,128 contracts by the Department of Defense, including contracts to provide advanced Patriot Air and Missile Defense Systems, a development contract for the Enterprise Air Surveillance Radar program, contracts to provide equipment for DDG 1000 destroyer ships, and ship integration and undersea sensor systems for the US Navy.

Pres Panayotov/Shutterstock.com

Pres Panayotov/Shutterstock.com

2. Boeing Co (NYSE:BA)

Total Value of Contracts: $24.35 Billion

On the second spot on our list of the top 12 biggest defense contractors in America in 2017 is Boeing Co (NYSE:BA), which was awarded 13,589 contracts. The aircraft manufacturer generates 64% of its defense, space and security segment revenue from the Department of Defense, which includes development and production of manned and unmanned military aircraft and weapons systems, which include the EA-18G Growler Airborne Electronic Attack, F/A-18E/F Super Hornet jet, F-15 Strike Eagle jet, CH-47 Chinook, AH-64 Apache, and V-22 helicopters and V-22 Osprey tiltrotor aircraft.

Pixabay/Public Domain

Pixabay/Public Domain

1. Lockheed Martin Corporation (NYSE:LMT)

Total Value of Contracts: $36.16 Billion

Lockheed Martin Corporation (NYSE:LMT) is a global security and aerospace company, which generated 71% of its revenue from the US government last year, including 59% from the Department of Defense. In 2016, Lockheed Martin Corporation (NYSE:LMT) was awarded 136,366 contracts by the DoD. Lockheed Martin Corporation (NYSE:LMT)’s aeronautic program, which accounted for 38% of the total sales includes the F-35 Lightning II Joint Strike Fighter, C-130 Hercules, F-16 Fighting Falcon, F-22 Raptor, and C-5M Super Galaxy. A total of 66% of its aeronautics sales were made to the US government last year.

Lockheed Martin Corporation (NYSE:LMT) also has a missiles and fire control segment, which includes air and missile defense systems, like the Terminal High Altitude Area Defense (THAAD) and Patriot Advanced Capability-3, and tactical missiles and air-to-ground precision strike weapon systems like the Multiple Launch Rocket Systems, Hellfire, and Javelin tactical missile. The company also has a rotary and mission systems business, which includes the Sikorsky helicopters program, which was acquired in 2015, as well as the Black Hawk and Seahawk helicopters.

Lockheed Martin (NYSE:LMT); F-35; strike, fighter, joint, vtol, military, jet, technology, airshow

Jordan Tan / Shutterstock.com

These are the top 12 biggest defense contractors in America in 2017. The majority of the companies are focused only on the aerospace and defense industry, while two companies provide healthcare services for active and retired military personnel. Just two companies, United Technologies Corporation (NYSE:UTX) and BAE Systems are diversified into other industries and don’t solely rely on defense spending, while the rest are generating the bulk of their revenue from US government contracts. The top two companies among the biggest defense contractors in America are focused on aircraft manufacturing, while other companies are engaged in building and equipping ships, which seems to be aligned with US foreign policy goals to uphold international order and be a superpower in Europe, the Middle East and Asia-Pacific.

Disclosure: None