Which are the Biggest US Defense Contractors?

by Admin on Oct 15, 2024

Here are the biggest U.S. defense contractors, based on the latest available data:

Top 10 Biggest US Defense Contractors by Defense Revenue in 2023

Rank Company Defense Revenue (USD Billion)
1 Lockheed Martin $68.59
2 RTX Corporation $27.82
3 General Dynamics $22.97
4 The Boeing Company $21.79
5 Northrop Grumman $15.09
6 Huntington Ingalls Industries $9.13
7 Humana $7.78
8 BAE Systems plc $7.53
9 L3Harris Technologies $6.37
10 Atlantic Diving Supply $4.42

Source: Defense News Top 100, 2024

Additional Points to Note:

  • Lockheed Martin and RTX are consistently the top two defense contractors in the U.S.
  • The defense industry is dynamic, with mergers, acquisitions, and divestitures occurring frequently. This can impact the rankings from year to year.
  • The figures above represent defense revenue only and may not reflect the companies' total revenue.
  • Some companies, like Humana, may seem surprising on this list. They provide services like health insurance to military personnel and their families.

For further information, you can check these resources:

  • Defense News Top 100: This annual list provides a comprehensive ranking of the top 100 defense companies globally.
  • Visual Capitalist: This website offers data visualizations on various topics, including the top defense companies by revenue.
  • Wikipedia: The Wikipedia page on "List of defense contractors" provides a general overview of major defense companies worldwide.
  • Company Websites: You can find detailed financial information and news on the companies' respective websites.

What Happened to Raytheon?

Raytheon underwent a significant transformation in recent years:

1. Merger with United Technologies:

  • In April 2020, Raytheon Company merged with United Technologies Corporation (UTC) in a "merger of equals." This created Raytheon Technologies Corporation, one of the world's largest aerospace and defense companies.
  • UTC was known for its commercial aerospace businesses like Pratt & Whitney (aircraft engines) and Collins Aerospace (avionics, aerostructures).

2. Name Change to RTX:

  • In July 2023, Raytheon Technologies Corporation changed its name to RTX Corporation. This rebranding aimed to reflect the company's broader portfolio beyond just defense.

3. Internal Reorganization:

  • Along with the name change, RTX reorganized its business units:
    • Pratt & Whitney: Focuses on aircraft engines.
    • Collins Aerospace: Provides aerospace systems and services.
    • Raytheon: This unit now combines the defense-focused businesses from the former Raytheon Company (missiles, intelligence, space) and some government-facing businesses from Collins Aerospace.

Essentially, Raytheon as a standalone company no longer exists. It became part of a larger entity, first as Raytheon Technologies and now as RTX Corporation. This reflects a trend of consolidation in the aerospace and defense industry.

You can find more details about this transformation on the RTX Corporation website and Wikipedia page.

What Happened to General Electric?

General Electric (GE), once a sprawling conglomerate and a symbol of American industrial might, has undergone a dramatic transformation in recent years. Here's a breakdown of what happened:

1. Decline and Restructuring:

  • Loss of Focus: GE's vast diversification across industries like finance, media, and healthcare led to a loss of focus and struggles in its core businesses.
  • Financial Crisis Impact: The 2008 financial crisis severely impacted GE Capital, its financial arm, leading to significant losses.
  • Poor Acquisitions: Some acquisitions, like Alstom's power business, proved costly and didn't deliver expected returns.
  • Declining Performance: GE's stock price plummeted, and it was even removed from the Dow Jones Industrial Average in 2018 after over a century.

2. Breakup into Three Companies:

  • Focus on Core Strengths: To streamline operations and improve performance, GE decided to break up into three independent, publicly traded companies:
    • GE Aerospace: Focuses on aircraft engines and aviation technology (completed in January 2024).
    • GE HealthCare: Specializes in medical imaging, diagnostics, and patient monitoring technology (completed in January 2023).
    • GE Vernova: Focuses on energy businesses, including renewable energy, power, and digital (completed in April 2024).

3. Reasons for the Breakup:

  • Unlocking Value: Separating the businesses was intended to unlock value for shareholders by allowing each company to focus on its core strengths and pursue its own growth strategies.
  • Agility and Innovation: Smaller, more focused companies are generally more agile and can innovate faster.
  • Attracting Investors: The breakup aimed to attract investors who might be interested in specific sectors (healthcare, aviation, or energy) rather than the conglomerate structure.

4. Current Status:

  • GE no longer exists as the conglomerate it once was. It now operates solely as GE Aerospace, focusing on its aviation business.
  • The breakup marks a significant shift in corporate strategy, moving away from the conglomerate model that dominated much of the 20th century.

In essence, GE's story is one of rise, decline, and reinvention. The company's transformation reflects the challenges faced by large conglomerates in the modern business environment and the need for focus and agility to thrive.

You can find more information about GE's transformation on its website, news articles, and Wikipedia.

Engineers and Project Leaders

What About General Motors?

General Motors, the American automotive giant. They've also been going through a significant transformation, though different from GE or Raytheon. Here's a summary:

1. Focus on Electric Vehicles (EVs):

  • "Ultium" Platform: GM has invested heavily in its Ultium battery platform, which serves as the foundation for its new generation of electric vehicles. This platform is modular and flexible, allowing it to underpin a wide range of EVs, from compact cars to large trucks.
  • EV Model Offensive: GM is rapidly expanding its EV lineup across its brands (Chevrolet, Buick, GMC, Cadillac) with models like the Chevrolet Bolt, Silverado EV, GMC Hummer EV, Cadillac Lyriq, and more.
  • Ambitious Goals: GM aims to become an all-electric vehicle manufacturer by 2035, phasing out gasoline-powered vehicles.

2. Autonomous Driving Technology:

  • Cruise Automation: GM acquired Cruise Automation in 2016 and has been developing self-driving technology. Cruise is now a majority-owned subsidiary of GM, focused on commercializing autonomous vehicles for ride-hailing and delivery services.

3. Software and Connected Services:

  • "Ultifi" Software Platform: GM is developing its Ultifi software platform, which will enable over-the-air updates, personalized vehicle experiences, and new features for its vehicles.
  • Subscription Services: GM is exploring new revenue streams through subscription services, such as OnStar connected services and advanced driver-assistance features.

4. Challenges and Competition:

  • EV Transition Costs: The transition to EVs requires significant investments in new technologies, manufacturing facilities, and charging infrastructure.
  • Competition: GM faces intense competition from established automakers like Ford and Volkswagen, as well as newer EV companies like Tesla.
  • Supply Chain Disruptions: The global chip shortage and other supply chain disruptions have impacted GM's production in recent years.

Overall, GM is undergoing a major transformation to position itself as a leader in the future of mobility, with a strong focus on electric and autonomous vehicles. While the company faces challenges, it's making significant strides in its electrification efforts and software development.

You can learn more about GM's transformation on its website, investor relations pages, and news articles about its EV strategy and Cruise Automation.

Weren't They a Defense Contractor too?

Yes, you're right! GM does have a history of involvement in the defense industry. Here's a look at GM Defense:

History:

  • GM's Early Contributions: GM has been involved in military vehicle production since World War I, supplying trucks and other vehicles to the Allied forces.
  • Founding of GM Defense: The company formally established GM Defense in 1950 to focus on military and government contracts.
  • Sales to the US Military: GM Defense has provided various vehicles and equipment to the U.S. military, including Humvees, armored personnel carriers, and trucks.
  • Recent Acquisitions: In 2017, GM re-established GM Defense as a wholly-owned subsidiary to focus on the growing demand for military and government solutions.

Current Work:

  • Commercial Vehicles for Military: GM Defense focuses on modifying and adapting its commercial vehicles for military and government use.
  • Advanced Mobility Solutions: The company is developing advanced mobility solutions, including autonomous vehicles and hydrogen fuel cell vehicles, for potential military applications.
  • Partnerships with the US Army: GM Defense has partnered with the U.S. Army on projects like the Infantry Squad Vehicle (ISV), a light and agile troop transporter based on the Chevrolet Colorado ZR2.

Key Points:

  • GM Defense is a relatively small part of GM's overall business, focusing on niche markets.
  • While GM is known primarily for its consumer vehicles, it has a long history of serving the defense industry.
  • The company continues to innovate and develop new products for military and government customers.

You can find more information about GM Defense on their website and in news articles about their defense contracts.

Which Defense Contractors Hire the Most Highly Paid Roles?

It's tricky to give a definitive answer about which defense contractors have the most highly paid roles, as salary data can be influenced by many factors (location, specific role, experience, etc.). However, I can offer some insights based on available information:

Factors to Consider:

  • Company Size and Revenue: Larger companies like Lockheed Martin, RTX, and General Dynamics often have more resources and may offer higher salaries for certain positions.
  • Specialization: Companies specializing in cutting-edge technology or high-demand fields (like cybersecurity, AI, or advanced materials) might offer premium salaries to attract top talent.
  • Government Contracts: The type and value of government contracts a company secures can influence its ability to offer competitive salaries.
  • Location: Salaries can vary significantly based on location due to cost of living and competition for talent. Companies in high-cost areas like Washington D.C. or Silicon Valley might offer higher base salaries.
  • Clearance Level: Roles requiring higher security clearances often come with higher pay due to the sensitive nature of the work.

Companies Known for Competitive Salaries:

Based on industry reputation and available data, here are some defense contractors that are often associated with competitive salaries, particularly for specialized roles:

  • Lockheed Martin: As the largest defense contractor, they offer a wide range of well-paying positions, particularly in engineering, research, and program management.
  • RTX Corporation: With its focus on advanced technologies, RTX (formerly Raytheon Technologies) is known for competitive salaries in areas like aerospace engineering, software development, and cybersecurity.
  • General Dynamics: This company offers strong compensation packages, especially for roles related to shipbuilding, information technology, and mission systems.
  • Northrop Grumman: Known for its expertise in areas like autonomous systems, space, and cybersecurity, Northrop Grumman often offers attractive salaries for specialized roles.
  • BAE Systems: This multinational defense contractor offers competitive salaries, particularly for engineers and project managers working on complex defense programs.

Beyond the Big Players:

  • Smaller, Specialized Companies: Don't overlook smaller, specialized companies. They often offer highly competitive salaries to attract and retain top talent in niche areas like artificial intelligence, cybersecurity, or advanced materials.
  • Subcontractors: Subcontractors working on specific projects for larger defense companies can also offer attractive salaries, particularly for specialized skills.

Where to Find More Information:

  • Job Boards: Websites like Indeed, Glassdoor, and LinkedIn often provide salary ranges for specific positions at defense contractors.
  • Company Websites: Many companies list salary ranges or provide information about compensation and benefits on their career pages.
  • Salary Surveys: Industry publications and organizations conduct salary surveys that can offer insights into compensation trends in the defense sector.

Remember that salary is only one factor to consider when evaluating a job offer. Other factors like benefits, work-life balance, and company culture are also important.

 

In the defense industry, highly paid roles are typically found within major defense contractors that develop advanced technologies for military, aerospace, and security applications. These companies are often involved in producing everything from aircraft and missiles to cybersecurity systems and satellites, requiring top talent in engineering, program management, technology, and executive leadership. The largest defense contractors are also global corporations with lucrative government contracts, enabling them to pay highly competitive salaries, particularly for specialized and leadership positions.

Here’s a breakdown of the defense contractors that tend to hire the most highly paid roles, and the types of positions that are typically compensated at the higher end of the scale.

1. Lockheed Martin

  • Lockheed Martin is the world’s largest defense contractor, with a significant focus on aerospace, missile defense, space systems, and advanced technology.
  • Highly Paid Roles:
    • Aerospace Engineers (particularly those working on fighter jets like the F-35 or space systems).
    • Cybersecurity Experts (especially in areas of military cyber defense).
    • Systems Engineers and Program Managers overseeing multi-billion-dollar defense programs.
    • Executive Leadership positions, such as Program Directors or Vice Presidents, overseeing large projects or business units.
  • Salaries: Senior engineers, program managers, and executives can earn between $150,000 to over $300,000 annually, depending on experience and role.

2. Northrop Grumman

  • Northrop Grumman is a major player in aerospace, autonomous systems, cybersecurity, and space systems. The company is a leading contractor for projects like the B-21 Raider stealth bomber and advanced military satellites.
  • Highly Paid Roles:
    • Systems Engineers working on complex military and space systems.
    • Cybersecurity Professionals and Information Security Managers, particularly those involved in securing classified government systems.
    • Program Managers overseeing large defense contracts, such as classified aerospace projects or missile defense systems.
  • Salaries: Senior engineers and managers at Northrop Grumman can earn well into the $150,000 to $250,000 range, with executive-level roles surpassing $300,000.

3. Raytheon Technologies

  • Raytheon Technologies is a major defense contractor specializing in missiles, radar systems, air defense, and cyber solutions. Raytheon is known for products like the Patriot Missile System and advanced radar technologies.
  • Highly Paid Roles:
    • Aerospace and Systems Engineers working on missile systems and radar technologies.
    • Cybersecurity Experts and Data Scientists developing advanced military defense systems.
    • Program Directors managing large-scale defense and aerospace programs.
  • Salaries: Senior technical roles and program managers typically earn between $150,000 and $250,000, with executive positions exceeding $300,000.

4. Boeing Defense, Space & Security

  • Boeing Defense, Space & Security is a division of Boeing that focuses on military aircraft, satellites, and space exploration technologies. Boeing is a key contractor for projects like the KC-46 Pegasus tanker, military satellites, and space launch systems.
  • Highly Paid Roles:
    • Aerospace Engineers and Systems Engineers working on military aircraft and space projects.
    • Program Managers responsible for multi-billion-dollar defense contracts.
    • Executive Leadership in engineering, project management, and operations.
  • Salaries: High-level engineering and management positions at Boeing can range from $150,000 to over $250,000, with top executives earning significantly more.

5. General Dynamics

  • General Dynamics is known for its work in aerospace, combat systems, marine systems, and IT services for the defense sector. Its subsidiaries include Gulfstream Aerospace and Electric Boat (which builds submarines for the U.S. Navy).
  • Highly Paid Roles:
    • Aerospace Engineers and Design Engineers at Gulfstream (known for high-end business jets) and engineers working on submarine programs at Electric Boat.
    • Cybersecurity Experts and Program Managers in IT services for defense systems.
    • Naval Engineers involved in submarine and shipbuilding projects.
  • Salaries: Senior roles at General Dynamics typically pay between $150,000 to $250,000, with leadership positions in the aerospace or marine divisions exceeding $300,000.

6. BAE Systems

  • BAE Systems is a British multinational defense, security, and aerospace company with a strong presence in the U.S. defense market. They work on combat vehicles, ammunition systems, cyber defense, and aerospace systems.
  • Highly Paid Roles:
    • Defense Engineers and Systems Architects working on military vehicle and electronic warfare systems.
    • Cybersecurity Experts and Data Scientists developing secure defense networks.
    • Program Managers overseeing large defense projects.
  • Salaries: Senior engineers and program managers can earn between $150,000 and $250,000, with executive roles reaching $300,000 or more.

7. Leidos

  • Leidos is a leading defense contractor specializing in information technology, cybersecurity, intelligence, and healthcare systems for government agencies, including the Department of Defense.
  • Highly Paid Roles:
    • Cybersecurity Experts, Software Engineers, and Data Scientists working on classified projects.
    • IT Systems Architects and Cloud Computing Experts for secure defense-related cloud services.
    • Program Managers handling large-scale government contracts in cybersecurity and intelligence.
  • Salaries: High-level roles in cybersecurity and program management at Leidos can pay between $150,000 and $250,000, with top executives earning more than $300,000.

8. L3Harris Technologies

  • L3Harris Technologies focuses on communication systems, surveillance systems, avionics, and space technologies. It’s a key player in defense communications, providing critical military communication networks.
  • Highly Paid Roles:
    • Systems Engineers and Aerospace Engineers working on communication and space systems.
    • Cybersecurity Specialists developing secure communications for military and defense applications.
    • Program Directors managing government contracts in advanced avionics and communications.
  • Salaries: Senior engineers and managers can earn between $150,000 and $250,000, with top-level executives earning more than $300,000.

9. SAIC (Science Applications International Corporation)

  • SAIC specializes in IT solutions, cybersecurity, cloud computing, and systems engineering for defense, intelligence, and civilian government customers.
  • Highly Paid Roles:
    • Cybersecurity Engineers, Data Scientists, and Cloud Computing Experts.
    • Systems Engineers working on complex military IT systems.
    • Program Managers overseeing large IT and cybersecurity government contracts.
  • Salaries: Senior roles at SAIC in IT and cybersecurity can range from $150,000 to $250,000, with executive-level roles exceeding $300,000.

Key Takeaways:

  • Highly paid roles in the defense industry typically include senior engineers, cybersecurity experts, systems architects, and program managers responsible for overseeing multi-billion-dollar defense contracts.
  • Program Managers and executive leadership positions at top defense contractors tend to earn salaries exceeding $200,000, with some roles, particularly at the executive level, exceeding $300,000 or more.
  • The largest defense contractors, such as Lockheed Martin, Northrop Grumman, Raytheon, and Boeing, are where many of the highest-paid roles are concentrated, given the size of their defense contracts and the advanced technologies they produce.

In summary, defense contractors pay top dollar for highly skilled engineers, technical experts, and leaders, with competitive salaries driven by the importance and complexity of the projects they work on, especially those involving government defense contracts.

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