A record jump in the revenues of global arms companies in 2024 news

The world’s largest arms producing companies witnessed a 5.9% increase in their revenues from arms sales and military services during the past year, with high demand fueled by the war in Ukraine and Gaza, in addition to an increase in countries’ military spending, according to a report issued on Monday.

The Associated Press published the contents of the report issued by the Stockholm International Peace Research Institute (SIPRI), which stated that the revenues of the 100 largest arms manufacturing companies rose to $679 billion in 2024, which is the highest number recorded by the institute.

The report explained that the largest portion of the increase resulted from companies located in Europe and the United States, although increases were recorded in most of the rest of the world’s regions – with the exception of Asia and Oceania – where problems in the Chinese arms industry led to a slight decline.

Thirty of the 39 US companies on the list of the largest 100 companies – including Lockheed Martin, Northrop Grumman, and General Dynamics – recorded increases.

Revenues and budgets

According to the report, its total revenues increased by 3.8% to reach $334 billion. But the SIPRI Institute noted that “widespread delays and budget overruns continue to hamper development and production” on key US-led programs, including the F-35 fighter jet.

23 out of 26 companies in Europe, excluding Russia, saw their arms revenues increase as the continent boosted spending. Its total income rose 13% to $151 billion, driven by demand related to the war in Ukraine and the perceived threat from Russia.

Siberi researcher Jade Guiberto Ricard explained in a statement that European companies are investing in new production capabilities to meet the growing demand, but he warned that “securing raw materials may pose an increasing challenge,” pointing out that restructuring supply chains for vital minerals may be complicated by Chinese export restrictions.