The Russia-Ukraine war and the U.S. military operation against Iran have prompted many countries to significantly increase their defense budgets, creating conditions for revenue growth among arms manufacturers. However, the financial performance of the world’s largest defense companies in the 2020s has been mixed: some companies managed to increase their profits more than fivefold, while others showed much more modest growth or even faced a decline in performance. This is reported by Dengi.ua, citing an infographic from “Slovo i Dilo.”
How Profits Have Changed for Major U.S. Defense Companies
The U.S. manufacturers covered in the study included Raytheon Technologies, Lockheed Martin, General Dynamics, and Northrop Grumman.
Raytheon Technologies (RTX) showed the most significant increase in net profit among them; the company manufactures, among other things, Patriot air defense systems, NASAMS medium-range surface-to-air missile systems, Stinger man-portable systems, and Tomahawk cruise missiles. In 2020, the company reported $3.52 billion in net income, and by 2025, this figure reached $6.73 billion. Thus, growth amounted to 91.2%, or nearly double.
At the same time, Lockheed Martin’s financial results deteriorated. The company, known for manufacturing HIMARS multiple-launch rocket systems, ATACMS ballistic missiles, F-16 fighter jets, and PAC-3 interceptor missiles for the Patriot systems, saw its net income decline from $6.83 billion in 2020 to $5.02 billion in 2025. At the same time, a sharp increase in demand for PAC-3 missiles following the depletion of their stockpiles during the U.S. operation against Iran likely had a positive impact on the manufacturer’s financial position.
General Dynamics and Northrop Grumman also ended the period under review with higher profit figures, although their performance trends differed. In 2020, these companies’ net income was $3.17 billion and $3.19 billion, respectively. By 2025, it had grown to $4.21 billion and $4.18 billion. In both cases, the increase exceeded 30%.
At the same time, Northrop Grumman’s financial results were marked by significant fluctuations. The company, which manufactures B-2 strategic bombers and GEM-T missiles for Patriot systems, increased its profit to $7 billion in 2021, but by 2023, the figure had fallen to $2.06 billion.
At General Dynamics, which manufactures M1 Abrams tanks, 155-millimeter artillery shells, and Stryker armored vehicles, profits grew more consistently.
Profits of European and Israeli Arms Manufacturers
The European portion of the sample included Airbus, BAE Systems, Leonardo SpA, Rheinmetall AG, and Saab AB. The Israeli defense sector is represented by Elbit Systems.
Among these manufacturers, Sweden’s Saab AB recorded the most significant growth in net profit. In 2020, the company earned $120 million, and by 2025, that figure had risen to $640 million. This represents an increase of 433.3%, or more than fivefold.
Saab is best known as the developer and manufacturer of the JAS 39 Gripen fighter jets, with the first deliveries to Ukraine scheduled for next year. In addition, the company produces the NLAW light anti-tank system and the AT4 grenade launcher.
Second place in terms of profit growth went to the Italian company Leonardo SpA, which specializes primarily in aviation technology and joint projects with other manufacturers. Among its developments are the Eurofighter Typhoon fighter jet and the AW101 and AW149 helicopters. The company’s net profit increased from $270 million in 2020 to $1.38 billion in 2025. This represents a 411.1% increase - more than a fivefold rise.
The results of the multinational corporation Airbus SE have also improved significantly. Its net profit over five years grew from $1.29 billion to $5.91 billion, representing an increase of 358.1%. Airbus’s core business is in the civil aerospace sector, but the company is also involved in major military projects, including the production of Atlas military transport aircraft.
The German defense contractor Rheinmetall AG more than doubled its net profit. While the manufacturer of tanks and artillery systems earned $310 million in 2020, its net profit reached $790 million in 2025.
The British company BAE Systems, which manufactures CV90 infantry fighting vehicles, M777 155-millimeter light howitzers, and Archer self-propelled artillery systems - all of which are used by the Ukrainian military—has also improved its financial results. Its net profit rose from $1.67 billion in 2020 to $2.72 billion in 2025, representing a 62.9% increase.
Israel’s Elbit Systems, the country’s largest private defense contractor, increased its profit by 120.8%. Most of this increase occurred in 2025. One of the company’s key areas of activity is the development of unmanned aerial vehicles. In particular, it manufactures the Hermes series of strike drones and the Skylark reconnaissance drones.
How Defense Companies’ Revenues Have Changed
A comparison of results for 2020-2025 shows that leading European arms manufacturers demonstrated the highest rates of net profit growth. U.S. companies, on the whole, saw slower profit growth, and some of them ended the period in a worse position than at the start of the decade.
A similar pattern emerges when comparing companies’ revenue - that is, income before expenses.
Among U.S. manufacturers, Raytheon Technologies’ revenue grew by 56.5%, Lockheed Martin Corp.’s by 14.8%, General Dynamics Corp.’s by 38.6%, and Northrop Grumman Corp.’s by 14.0%.
In Europe, several leading companies posted higher figures. Airbus SE increased its revenue by 45.7%, BAE Systems by 51.0%, Leonardo SpA by 44.1%, and Rheinmetall AG by 76.3%. The Swedish company Saab AB posted the largest increase in this group, with revenue rising by 109.6% during the period under review.
Thus, despite the overall growth in global defense spending amid military conflicts, the financial returns for arms manufacturers varied. European companies, for the most part, demonstrated higher rates of profit growth, while the results of American corporations were more modest.