The global defense industry is one of the biggest and most technologically advanced sectors, driven by rising geopolitical tensions and rapid technological innovation.
Governments collectively spend more than $2.7 trillion annually on defense, making military expenditure one of the largest public spending categories worldwide. [1]
Much of this massive budget flows to a relatively small group of companies known as defense contractors. These contractors design, manufacture, and maintain everything from fighter jets and submarines to satellites, missile systems, cyber-defense tools, and advanced military AI.
Some companies operate at the center of the largest and most expensive engineering programs ever undertaken. The F-35 Lightning II fighter jet program, for instance, costs more than $2 trillion throughout its lifecycle, making it the most expensive military program in history. [2]
Below, I highlight the world’s largest defense contractors, looking at their business models, major programs, revenues, and strategic importance to national security.
From aerospace giants building fifth-generation fighter jets to naval manufacturers producing nuclear submarines, these companies form the industrial backbone of global military power.
Did you know?The United States alone allocates more than $960 billion annually to defense, accounting for roughly 40% of global military spending. Meanwhile, NATO countries together spend over $1.58 trillion annually on their defense budgets. [3]
Table of Contents
13. Leonardo
Founded: 1948Country: Italy
Employees: 62,000+
Defense Revenue: $13.8 billion+
Competitive Edge: Leading manufacturers of military helicopters
Leonardo is one of Europe’s largest aerospace and defense companies, supplying defense equipment to European militaries and allied nations worldwide.
The company is particularly well known for its military helicopter manufacturing capabilities, operating one of the most advanced helicopter divisions in the world. It develops a broad range of helicopters used for combat operations, search-and-rescue missions, naval operations, and troop transport.
Another major strength of Leonardo is its defense electronics and radar technologies. It develops advanced surveillance systems, electronic warfare platforms, and radar networks used in air defense and naval operations.
These technologies play a crucial role in modern warfare, where sensor networks and real-time intelligence systems are essential for detecting threats and coordinating military responses.
Leonardo is also investing heavily in AI, cybersecurity, digital warfare systems, and integrated defense platforms. Management described this as a shift toward more technology-driven defense solutions. [4]
In 2025, the company generated about €19.5 billion in revenue and secured €23.8 billion in new orders, reflecting strong demand driven by rising global defense spending.
12. Norinco
Type 99 tank
Country: China
Employees: 216,000+
Defense Revenue: $13.9 billion+
Competitive Edge: Land warfare systems and ammunition production
China North Industries Group Corporation Limited (short for Norinco) is a major global supplier of land warfare systems, armored vehicles, missile technologies, and military equipment.
Norinco oversees a massive network of industrial subsidiaries, research institutes, and manufacturing facilities spread across China. Through this extensive industrial base, Norinco produces a broad range of defense products, including main battle tanks, armored fighting vehicles, artillery systems, and air defense platforms.
The company is particularly well known for its land warfare systems, especially main battle tanks and armored combat vehicles. One of its flagship platforms is the Type 99 tank, a modern Chinese main battle tank built with advanced armor protection, high-powered weapon systems, and digital battlefield technologies. [5]
In recent years, Norinco has expanded into international mining investments, including attempts to acquire copper and cobalt mining assets in Africa as part of China’s strategic resource initiatives.
11. Airbus
Founded: 1970Headquarters: Netherlands and France
Employees: 157,800+
Defense Revenue: $15 billion+
Competitive Edge: Strong position in military transport aircraft
While widely known for producing commercial passenger aircraft, Airbus also develops military transport aircraft, satellites, drones, and defense communication systems for governments and military organizations worldwide.
Its defense systems are used by numerous NATO members and allied countries, making Airbus one of the most important defense contractors in Europe.
One of its most prominent military programs is the Airbus A400M Atlas military transport aircraft. The A400M is designed to transport troops, heavy equipment, and humanitarian aid over long distances while also operating from short, unprepared runways.
As of 2025, Airbus reported total revenue of about €73.4 billion, with its Defence and Space division contributing around €13.4 billion, making up a significant part of its business. [6]
In the same year, Airbus signed agreements with Leonardo and Thales to potentially combine parts of their space businesses, aiming to strengthen Europe’s competitiveness in the satellite market.
10. L3Harris Technologies
Founded: 2019Country: United States
Employees: 47,000+
Defense Revenue: $16.2 billion+
Competitive Edge: Electronics and communications specialization
L3Harris Technologies was formed through the merger of L3 Technologies and Harris Corporation, creating one of the largest defense electronics companies in the US.
The combined entity brought together decades of expertise in communications systems, surveillance technologies, and defense electronics. Today, it employs over 47,000 people, including engineers, software developers, and defense technology specialists.
The company develops secure military communication systems and advanced intelligence, surveillance, and reconnaissance (ISR) technologies, including sensors, airborne surveillance systems, and data-processing platforms. These technologies help monitor battlefields, detect threats, and gather real-time intelligence during military operations.
In 2025, L3Harris generated $21.9 billion in annual revenue, supported by strong global defense demand and increased military modernization spending. It also reported operating cash flow of about $3.1 billion and free cash flow of $2.8 billion, highlighting solid financial performance. [7]
9. China Electronics Technology Group Corporation
Founded: 2002Country: China
Employees: 200,000+
Defense Revenue: $18.9 billion+
Competitive Edge: Dominance in military electronics
China Electronics Technology Group Corporation (CETC) is the country’s leading developer of military electronics, radar systems, cyber warfare technologies, and surveillance infrastructure.
It plays a central role in China’s defense technology ecosystem, particularly in areas like command-and-control systems, integrated battlefield networks, missile guidance electronics, and military communications infrastructure.
CETC’s radar technologies are deployed across land, naval, and airborne platforms, forming an essential part of China’s integrated air defense networks.
Its organizational structure includes over 40 research institutes, defense electronics labs, manufacturing units, and technology investment arms. This research-focused setup puts more emphasis on innovation rather than just manufacturing platforms.
In recent years, CETC has expanded its defense cooperation globally. For example, in 2026, CETC International signed agreements related to UAV manufacturing cooperation with Bangladesh, highlighting China’s growing defense partnerships.
8. Aviation Industry Corporation of China
Founded: 1951Country: China
Employees: 400,000+
Defense Revenue: $20.3 billion+
Competitive Edge: State ownership and unlimited backing
Aviation Industry Corporation of China (AVIC) is, without question, one of the most consequential defense enterprises worldwide, not merely because of its size, but because of its singular role as the backbone of China’s military aviation ambitions.
What makes AVIC uniquely formidable as a defense contractor is its vertically integrated structure. Unlike Western defense primes that rely heavily on independent supply chains, AVIC controls everything from raw materials and aeroengine development to final aircraft assembly, avionics, and weapon systems integration — all under one government-directed roof.
Based on factory infrastructure analysis, AVIC has the capacity to produce 300 fourth- and fifth-generation fighters annually.
AVIC also has a high-level research network, including 33 research institutes and China Aviation Establishment, as well as a large team of academicians and national-class experts.
Plus, the company has been testing AI-driven health-monitoring systems that proactively diagnose and predict component failures in engines and other critical systems. These systems help reduce operating costs, cut downtime, and improve aircraft safety, making them especially attractive to developing countries seeking advanced technology at lower cost. [8]
7. Rostec
Country: Russia
Employees: 660,000+
Defense Revenue: $27.1 billion+
Competitive Edge: State backing advantage
Rostec is one of the largest state-owned defense conglomerates in the world and the backbone of Russia’s defense manufacturing sector. It oversees more than 700 industrial enterprises that produce a broad range of military equipment, including fighter jets, helicopters, missile systems, armored vehicles, and advanced electronic warfare technologies.
The company is deeply integrated into Russia’s defense sector. Estimates suggest Rostec produces more than half of Russia’s military equipment.
Plus, it invests heavily in next-generation defense technologies such as hypersonic weapons, AI-enabled battlefield systems, and modern electronic warfare platforms. By the end of 2024, Rostec had invested about $8.7 billion in expanding and modernizing defense production facilities to meet military demand.
Financially, Rostec has grown alongside Russia’s increased military spending. The company reported total revenues of about $39 billion in 2024, driven by higher government defense orders and ongoing industrial modernization.
6. Boeing
Boeing F-15EX Eagle II
Country: United States
Employees: 182,000+
Defense Revenue: $30.5 billion+
Competitive Edge: Integrated space and defense technologies
While Boeing is widely recognized for commercial aircraft, its defense division remains one of the top global defense contractors and a critical supplier to the US Department of Defense. It supplies military aircraft, satellites, missile systems, and defense services.
More specifically, Boeing’s Defense division employs more than 18,000 direct employees, and develops military fighter aircraft, tanker aircraft, military helicopters, autonomous drones, and space systems and satellites.
Its most successful program is the F-15 Eagle fighter jet, which has served for decades as one of the most capable air superiority aircraft ever built. Hundreds of F-15 aircraft have been built, and the platform continues to evolve with modernized variants such as the F-15EX, which integrates modern sensors, electronic warfare systems, and advanced weapons.
Another important military aviation platform developed by Boeing is the AH-64 Apache attack helicopter. More than 2,875 Apaches have been produced, and the helicopter continues to receive upgrades, including improved sensors, targeting systems, and weapons integration.
The company is developing next-generation autonomous military aircraft, such as the MQ-25 refueling drone and the MQ-28 collaborative combat aircraft. These projects highlight the growing shift toward unmanned warfare.
5. General Dynamics
Founded: 1952Country: United States
Employees: 117,000+
Defense Revenue: $33.6 billion+
Competitive Edge: Dominance in armored combat vehicles
General Dynamics is a major supplier of nuclear submarines, armored combat vehicles, military IT systems, and aerospace platforms.
One of its most famous defense products is the M1A2 Abrams main battle tank, which has been the US Army’s primary armored combat vehicle for decades. The Abrams tank is one of the most advanced main battle tanks ever built, combining heavy armor protection, powerful weapon systems, and advanced battlefield electronics.
The company also builds nuclear-powered submarines (through its Electric Boat division), including ballistic missile submarines and attack submarines that play a key role in strategic deterrence and naval warfare. These submarines can cost between $7 and $10 billion per vessel, and construction programs often extend over several decades.
A defining feature of General Dynamics is its deep integration with US defense procurement. Approximately 70% of revenue comes from the US federal government. They currently employ more than 117,000 people worldwide, including engineers, shipbuilders, cybersecurity specialists, and manufacturing experts.
General Dynamics ended 2025 with a record order backlog of about $118 billion, with total potential contract value reaching about $179 billion. This gives the company strong long-term revenue visibility due to multi-year military procurement programs. [9]
4. BAE Systems
Country: United Kingdom
Employees: 110,000+
Defense Revenue: $34 billion+
Competitive Edge: Advanced naval vessels & nuclear-powered submarines.
BAE Systems is the largest defense contractor in Europe and one of the top five defense companies globally. It provides advanced defense technologies to governments across North America, Europe, the Middle East, and Asia-Pacific.
The company generates about $36 billion in annual revenue, with most of its business tied to defense programs. In 2025, it reported a net profit of £2.1 billion and achieved a record order backlog of £83.6 billion.
BAE Systems is particularly strong in naval defense and submarine construction, building some of the most advanced submarines used by the United Kingdom’s Royal Navy. It also plays a major role in developing nuclear-powered submarines, which are among the most complex engineering systems ever built.
Another major area of expertise for BAE Systems is military aircraft and combat aviation programs. The company is a core partner in the Eurofighter Typhoon fighter jet program, one of Europe’s most advanced multi-role combat aircraft.
Plus, they have invested heavily in ammunition manufacturing to address global shortages. BAE Systems developed new production methods to substantially increase artillery shell output and reduce supply chain risks. [10]
3. Northrop Grumman
Northrop B-2 Spirit
Country: United States
Employees: 95,000+
Defense Revenue: $38 billion+
Competitive Edge: Stealth aircraft engineering
Northrop Grumman is particularly important to US national security because of its involvement in the nuclear triad modernization, stealth bomber development, and missile defense systems.
The company is well known for its leadership in stealth aircraft technology. It has developed the B-2 Spirit stealth bomber, one of the most advanced strategic bombers ever produced. Only 21 aircraft were built, but each aircraft cost over $2 billion, making it one of the most expensive military aircraft in history.
Northrop Grumman is also the prime contractor for the B-21 Raider, the first new US stealth bomber in over 30 years, which is expected to become the backbone of the US strategic bomber fleet. [11]
Beyond aircraft, Grumman has become a major player in space and missile systems, particularly after acquiring Orbital ATK in 2018. The company now builds military satellites, rocket systems, missile interceptors, and space-based defense infrastructure.
In 2025, it generated nearly $42 billion in revenue and saw strong growth in operating income. It also reported a record backlog of about $95.7 billion, showing strong future demand for its defense programs.
2. RTX Corporation
Country: United States
Employees: 220,000+
Defense Revenue: $44 billion+
Competitive Edge: Engine dominance through Pratt & Whitney
RTX Corporation (formerly Raytheon Technologies) supplies missile systems, aircraft engines, avionics, cybersecurity solutions, and space technologies to governments and militaries globally.
The company was formed in 2020 through the merger of Raytheon Company and United Technologies’ aerospace businesses, creating a defense and aerospace giant with massive scale.
RTX is now particularly known for missile defense systems such as the Patriot air defense system and Tomahawk cruise missile, which are widely used by NATO and allied nations. In recent years, demand for these systems has increased significantly due to geopolitical tensions and rising global defense budgets.
In 2025, RTX generated $88.6 billion in annual revenue. It also produced about $10.6 billion in operating cash flow and about $7.9 billion in free cash flow, reflecting strong profitability from defense programs and aerospace demand.
The company has a backlog of roughly $268 billion, including about $107 billion in defense orders, giving strong revenue visibility. [12]
1. Lockheed Martin
Country: United States
Employees: 123,000+
Defense Revenue: $65 billion+
Competitive Edge: Long-term contracts and backlog
Lockheed Martin is the world’s largest defense contractor, playing a central role in the development of advanced military technology for the United States and its allies.
Its customers include the U.S. Department of Defense, NASA, allied governments, and intelligence agencies, making it one of the most strategically important companies in the global defense industry.
The company generates over $75 billion in annual revenue, with nearly 90% of that revenue tied directly to defense contracts. It reports net earnings of about $5 billion, $6.9 billion in free cash flow, and a record order backlog of about $194 billion, providing multi-year revenue visibility. [13]
Lockheed Martin’s flagship program, the F-35 Lightning II, is the most expensive weapons program in history and represents a major long-term revenue engine. The program is expected to cost more than $2 trillion throughout its lifecycle, including development, procurement, and maintenance.
They have also launched an AI subsidiary called Astris AI to help integrate artificial intelligence into defense systems.
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Sources Cited and Additional References- Research, Unprecedented rise in global military expenditure, SIPRI
- National Defense, The F-35 will now exceed $2 trillion as the military plans to fly it less, GAO
- Politics & Government, Combined defense expenditure of NATO member states, Statista
- Giulia Segreti, Italy’s Leonardo steps up digital defence drive and lifts targets, Reuters
- Seong Hyeon Choi, China’s most advanced tank delivers firepower and agility, SCMP
- Financial Results, Consolidated Full Year 2025 results and guidance for 2026, Airbus
- Financial Results, Consolidated Full Year and Q4 2025 results, L3Harris Technologies
- John Persinos, China’s Avionics Revolution: Why the West Should Be Worried, Aviation Today
- Financial Results, Consolidated Full Year and Q4 2025 results, General Dynamics
- Mia Jankowicz, BAE Systems found a way to meet the UK’s need for a lot of ammunition, Business Insider
- Tom Porter, Northrop Grumman is taking a financial hit on its B-21 Raider stealth bomber, Business Insider
- Financial Results, RTX reports 2025 results and announces 2026 outlook, RTX
- Financial Results, Consolidated Full Year and Q4 2025 results, Lockheed Martin
