THE world’s biggest weapons-producing companies saw a massive 5.9 per cent increase in revenue from sales of arms and military services last year, according to a report released today.

The bumper revenues for the arms companies come as figures released last week by the International Committee of the Red Cross estimated some 204 million people worldwide now live in areas either controlled or contested by armed groups.

The Stockholm International Peace Research Institute (Sipri) said the revenues of the 100 largest arms-makers grew to $679 billion (around £518bn) in 2024, the highest figure it has ever recorded.

The bulk of the increase was down to companies based in Europe and the United States, although US companies held significant stocks in many of the European manufacturers.

Some 30 of the 39 US companies in the top 100 — including Lockheed Martin, Northrop Grumman and General Dynamics — posted increases. 

Their combined revenue was up 3.8 per cent at $334bn (£255bn). But Sipri noted that “widespread delays and budget overruns continue to plague development and production” in major US-led programmes, including the F-35 fighter jet.

Some of the 26 companies in Europe saw their arms revenue increase. Their aggregate income rose by 13 per cent to $151bn (£115bn), fuelled by the war in Ukraine and the alleged threat from Russia.

There were notably big gains for the Czech Republic’s Czechoslovak Group, whose revenue soared by 193 per cent thanks in part to a government-led project to source artillery shells for Ukraine; and for Ukraine’s JSC Ukrainian Defence Industry, which had a 41 per cent gain.

The two Russian companies in Sipri’s list, Rostec and United Shipbuilding Corporation, saw arms revenues rise 23 per cent to a combined $31.2bn (£24bn), despite sanctions leading to a shortage of components. 

Arms revenue also grew in the Middle East, and the three Israeli companies in the ranking had a 16 per cent increase to $16.2bn (£12.3bn). 

In 2024, the backlash over Israeli actions in Gaza “seems to have had little impact on interest in Israeli weapons,” Sipri researcher Zubaida Karim said, and many countries continued to place new orders.

A 1.2 per cent drop in revenue in Asia and Oceania to $130bn (£99.2bn) was led by a 10 per cent drop in the income of the eight Chinese companies in the index. That came as a number of major contracts were delayed or cancelled last year, Sipri said.