A new report finds that U.S. arms contractors’ revenues are surging, even as their programs are late and over budget, undermining military planning and drawing funds and resources away from other government priorities.
Released today, the new fact sheet by the Stockholm International Peace Research Institute (SIPRI) finds that 39 U.S. weapons companies among the world’s 100 largest arms-producing companies, collectively saw their revenues go up by 3.8% to reach $334 billion in 2024, boosted by countries’ weapons modernization efforts, and wars in Ukraine and the Middle East. The largest U.S. companies, Lockheed Martin, RTX, Northrop Grumman, and General Dynamics, all saw increased arms revenues in 2024.
Meanwhile the cost increases and delays among key U.S. weapons programs, like the F-35 fighter jet, the Sentinel intercontinental ballistic missile (ICBM) nuclear weapons program, and Virginia- and Columbia-class submarines, appear to be out of control.
The Columbia-class submarine program, for example, is running about 16 months behind schedule and is $17 billion over budget — lining the pockets of manufacturer General Dynamics, whose revenues went up 8.1% in 2024.
The F-35 program delays boosted Lockheed Martin’s 3.2% arms revenue increase last year, where F-35s to be delivered in 2023 came later, especially because of hardware and software-related production setbacks. Northrop Grumman’s revenues jumped by 3.3%, to $37.9 billion in 2024, as production costs for its troubled Sentinel program skyrocketed to an estimated $141 billion — over 80% over original budget projections.
SIPRI researchers say these issues mar U.S. military planning, where these delays and cost overruns can divert government resources from other programs.
“The delays and rising costs [of these programs] will inevitably impact U.S. military planning and military spending,” said Xiao Liang, a researcher at SIPRI’s Military Expenditure and Arms Production Programme. “This could have knock-on effects on the U.S. government’s efforts to cut excessive military spending and improve budget efficiency.”
SIPRI also found that these delays and cost overruns may worsen in the future, as companies say restricted access to critical minerals, because of new Chinese export controls on some of them, may hamper their ability to make weapons systems on time.- Global powers boost military budgets by record percent ›
- War drives revenue increases for world's top arms dealers ›
