The aerospace and defense industry plays a pivotal role not just in national security but also the stock market. With U.S. defense spending leading the world, the largest contractors are well-positioned for growth amid rising global tensions.
Below, I rank the top 10 largest U.S. contractors by defense revenue, using 2024 data from Defense News. I believe these companies represent attractive opportunities for investors seeking exposure to the sector.
10. Amentum
Amentum, a leading provider of engineering and technical services, specializes in supporting government missions. The Virginia-based company’s $5.7 billion in defense-related revenue stems from key contracts with the Department of Defense and other federal agencies. Amentum’s expertise spans logistics, cybersecurity and nuclear operations.
9. Booz Allen Hamilton
Booz Allen Hamilton has built its reputation as a leading provider of technology and consulting services for the DoD. The company leverages advanced capabilities in artificial intelligence and cybersecurity to address complex defense challenges. With $6.8 billion in defense-related revenue, Booz Allen’s strong cash flow and diversified portfolio make it an attractive investment in the defense space.
8. Leidos
Leidos specializes in IT services and solutions, providing support for mission-critical systems for the DoD and other federal agencies. With $11.1 billion in defense revenue, the company’s expertise spans cybersecurity, data analytics and autonomous systems. Last year, Leidos secured major contracts like the Advanced Battle Management System and engineering services for the F-16 weapon system. Its consistent revenue growth demonstrates strong operational performance and future potential.
7. HII (Huntington Ingalls Industries)
HII is a leader in shipbuilding and defense technologies, generating $11.4 billion in defense-related revenue in 2024. As the sole builder of U.S. Navy aircraft carriers and a key supplier of nuclear-powered submarines, HII has expanded its capabilities in unmanned underwater vehicles and cybersecurity. Its strategic focus on naval innovation ensures its continued importance in U.S. defense operations.
6. L3Harris Technologies
L3Harris Technologies is known for its advanced communication systems, tactical radios and next-generation jamming technology. The Florida-based company’s $15.6 billion in defense-related revenue reflects its critical role in providing cutting-edge solutions to the U.S. military. Recent achievements include contracts for the Glide Phase Interceptor and acquisition of space exploration company Aerojet Rocketdyne. With an emphasis on margin expansion and cost efficiency, we believe L3Harris is well-positioned for continued growth.
5. Boeing
Boeing’s defense segment, which contributed $32.7 billion in revenue last year, complements its commercial aerospace business. Programs like the F-15EX fighter jet and satellite systems highlight Boeing’s engineering background. Despite challenges in its commercial segment, Boeing’s defense arm continues to drive innovation and secure key contracts.
4. General Dynamics
General Dynamics’ diverse portfolio spans combat vehicles, shipbuilding and IT services, generating $33.7 billion in defense revenue in 2024. Its Gulfstream aerospace division also contributes to its strength, although primarily in the civilian sector. The Virginia-based company’s shipbuilding division, which delivers submarines to the U.S. Navy, was just awarded a $188 million contract to aid Virginia-class submarines. With profitability expected to rise through improved margins, General Dynamics remains a cornerstone of U.S. defense capabilities.
3. Northrop Grumman
Northrop Grumman is at the forefront of aerospace and defense innovation, with $35.2 billion in defense revenue. Known for its contributions to nuclear modernization, the B-21 Raider stealth bomber and space systems, Northrop is a leader in cutting-edge defense technologies. The company has expanded its missile production capacity and bolstered its backlog through international sales and key programs like Sentinel.
2. RTX
RTX specializes in missile systems, integrated defense solutions and advanced sensors, with $40.6 billion in defense revenue in 2024. Formerly known as Raytheon Technologies, the company’s notable projects include hypersonic weapons development and advanced air defense systems. RTX’s strategic divestitures also demonstrates its commitment to delivering shareholder value.
1. Lockheed Martin
Lockheed Martin stands as a giant in the defense sector, with a whopping $64.7 billion in defense revenue. The Bethesda, Maryland-based company’s iconic programs like the F-35 Lightning II fighter jet and advanced hypersonic weapons have solidified its dominance. Lockheed continues to expand its space division, announcing its acquisition of satellite firm Terran Orbital in August 2024. Its robust backlog and commitment to cutting-edge technology make it, I believe, a no-brainer for defense investors.
The Investment Opportunity
As geopolitical tensions continue to rise, we expect the demand for advanced military technologies to continue growing. By understanding the strengths and strategies of these top contractors, investors can make informed decisions to capitalize on this essential industry.