Here's a look at some of the biggest names in both the defense equipment and government services sectors. But just as the Industrial Revolution and Colonialism spurred the first wave of defense contracting as a major business, it was the First World War that provided another surge of power to the industry. List of defense contractors by arm sales. Huntington Ingalls is the rare specialist among defense giants. But in an industry that requires massive specialized manufacturing skills, access to clearances, and strong relationships with government buyers, size does matter. Combined, more than 65% of sales come from prime contracts, with the rest from subcontracting work. GD is also the owner of Gulfstream, one of the world's largest manufacturers of business jets. The order of the rankings might change over time, but there is good reason to expect that today's list of the largest defense companies will look quite similar to a list made in a few years' time. To date, these moves have not yet paid dividends for shareholders, but GD's tendency to move against conventional wisdom in the industry makes it one to watch among the contractors. Unlike many of the larger defense contractors on this list, Huntington Ingalls focuses entirely on aquatic military products. ", https://www.sipri.org/sites/default/files/2018-12/fs_arms_industry_2017_0.pdf, The British Library - finding information on the defence industry, Private Security Transnational Enterprises in Colombia, Private Security Contractors at War: Ending the Culture of Impunity (2008), https://en.wikipedia.org/w/index.php?title=List_of_defense_contractors&oldid=987838207, Creative Commons Attribution-ShareAlike License, This page was last edited on 9 November 2020, at 15:12. If you’re looking for a more simplified way to browse and compare ETFs, you may want to visit our ETFdb.com Categories , which categorize every ETF in a single “best fit” category. Factoring in dividends, each of the five largest defense contractors has outpaced the S&P 500 over the past 10 years. General Dynamics has an impressive portfolio of defense products: It serves as the U.S.'s primary supplier of tanks and heavy land vehicles and also owns a number of shipyards where destroyers and nuclear-powered submarines are manufactured. Harris focused on battlefield management systems, aircraft communications, and classified space work, while L3 specialized in sensors, night-vision equipment, and unmanned technology. Broadly speaking, any company that takes the bulk of its revenue from government customers, be it the Pentagon, civil agencies, or intelligence services, is considered a defense contractor. It's never wise to prioritize growing for the sake of size, but in the government services sector, scale is vitally important. That's unlikely to change, since the company tries to position itself as a hybrid consulting/IT business able to extract higher margins on work because of its ability to offer greater technical analysis than its rivals. Leidos is also dipping its toes into the equipment business. It also owns shipyards on the U.S. Gulf Coast that make surface combatants, amphibious assault ships, and U.S. Coast Guard national security cutters. Defense Stock #6: Raytheon Company Booz Allen has had a rocky history, including being the employer of NSA leaker Edward Snowden and of Harold Thomas Martin III, who was accused in 2016 of theft of government property and the removal of classified documents. Returns as of 12/08/2020. Leidos is the largest pure-play government services firm, formed out of a spinoff from SAIC in 2012 and expanded via a 2016 purchase of Lockheed Martin's IT business. Image source: Lockheed Martin. There is very little direct overlap in the portfolio, though there are areas for potential collaboration. While Lockheed makes the current-generation fighters and Northrop won the deal for the new bomber, Boeing has an extensive portfolio of planes and helicopters in service, including the F/A-18 Super Hornet, the F-15 fighter, the Apache helicopter, and a number of surveillance and support aircraft. While Leidos -- and most of the government services sector -- has spent the last decade consolidating, Booz Allen Hamilton has largely gone it alone. This is a list of the world's 50 largest arms manufacturers and other military service companies, along with their countries of origin. Invesco Aerospace & Defense ETF (NYSEArca: PPA) The fund seeks to replicate the yield and price of the SPADE Defense Index. Security contractors do not generally provide direct support of military operations. 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2020 list of publicly traded defense contractors