10 Biggest Military Companies in the World [2024]

Summary: Military companies play a crucial role in supplying the armed forces with the necessary equipment and technology to defend nations and maintain security. These companies design, develop, and manufacture a wide range of military hardware, from fighter jets and tanks to communication systems and cybersecurity solutions. In this piece, we explore the 10 biggest military companies globally, their significance, and the considerations involved in investing in their stocks, each available for investing on eToro.

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What are military stocks?

Military stocks are shares in military companies (defense contractors and arms manufacturers) that specialize in producing goods and services for military purposes. These companies typically work closely with governments and armed forces to develop and supply advanced weaponry, equipment, and technologies to support defense and security efforts.

About the military industry

The global military industry has experienced significant growth in recent years, with defense spending reaching over $2.2 trillion by 2022, constituting approximately 2.2% of the global GDP. Events such as the ongoing Ukraine-Russia conflict and the Israel-Gaza war have further fueled defense spending, particularly in the Western world, including increased support from NATO nations.

Despite the notion that wars may bolster the stocks of defense companies, historical data suggests a more nuanced relationship, with fluctuating performance observed even during times of conflict. For instance, Lockheed Martin Corporation (NYSE: LMT), a key player in the defense sector, remains optimistic about potential orders amidst geopolitical tensions, emphasizing the significance of ongoing projects like the F-35 aircraft.

The surge in defensive capabilities and spending among European countries following Russia’s invasion of Ukraine underscores the industry’s resilience and strategic importance. Despite the United States being the largest weapons exporter globally, with companies like Raytheon Technologies Corporation (NYSE: RTX) securing substantial contracts, stock performance within the sector can vary, with some companies experiencing declines despite significant contracts and geopolitical tensions.

Where to invest in military stocks

Military stocks can be purchased via numerous online brokerage platforms. In this case, our recommended choice is eToro, a widely acclaimed platform boasting over 30 million registered accounts. eToro offers an array of beneficial features, including:

• Commission-free stock trading;
• Access to over 2,000 stocks from 17 different exchanges;
• Charting tools;
• The option to purchase fractional shares.

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• Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.

• 0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.

• Copy top-performing traders in real time, automatically.

• eToro USA is registered with FINRA for securities trading.

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eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available. Don’t invest unless you’re prepared to lose all the money you invest.

10 biggest military companies

Here are the top 10 military companies globally, each contributing significantly to defense and security efforts worldwide:

• L3Harris Technologies, Inc. (NYSE: LHX);
• BAE Systems (LSE: BA.);
• Safran (XPAR: SAF);
• General Dynamics Corporation (NYSE: GD);
• Northrop Grumman Corporation (NYSE: NOC);
• Airbus (XPAR: AIR);
• Lockheed Martin Corporation (NYSE: LMT);
• RTX Corporation (NYSE: RTX);
• The Boeing Company (NYSE: BA);
• Honeywell International Inc. (NASDAQ: HON).

L3Harris Technologies, Inc. (NYSE: LHX)

L3Harris Technologies is a global aerospace and defense technology company formed by the merger of L3 Technologies and Harris Corporation. It provides a wide range of solutions, including communication systems, electronic warfare, and intelligence, surveillance, and reconnaissance (ISR) technologies.

BAE Systems (LSE: BA.)

BAE Systems is a British multinational defense, security, and aerospace company. It designs and manufactures military aircraft, ships, submarines, and armored vehicles, along with providing cybersecurity and intelligence services.

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Safran (XPAR: SAF)

Safran is a French multinational company specializing in aerospace, defense, and security. It produces military aircraft, helicopters, missiles, and space systems, as well as provides services such as maintenance, repair, and training.

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General Dynamics Corporation (NYSE: GD)

General Dynamics is an American aerospace and defense company with a diverse portfolio. It manufactures combat vehicles, ships, submarines, and business jets, and offers IT services and solutions for government and commercial customers.

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Northrop Grumman Corporation (NYSE: NOC)

Northrop Grumman is a leading global security company providing innovative systems, products, and solutions in aerospace, electronics, and information systems. Its offerings include unmanned systems, missile defense, and space technologies.

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Airbus (XPAR: AIR)

Airbus, though primarily known for commercial aircraft, also has a significant presence in the defense and space sectors. It produces military transport aircraft, helicopters, satellites, and defense electronics.

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Lockheed Martin Corporation (NYSE: LMT)

Lockheed Martin is one of the largest defense contractors globally, known for its advanced technology systems and solutions. It manufactures fighter jets, missile systems, surveillance platforms, and cybersecurity solutions.

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RTX Corporation (NYSE: RTX)

RTX Corporation, formerly Raytheon Technologies Corporation, is a conglomerate formed by the merger of Raytheon Company and United Technologies Corporation. It provides advanced technology solutions for aerospace and defense, including missile systems, aircraft engines, and avionics.

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The Boeing Company (NYSE: BA)

Boeing is a major aerospace company involved in both commercial and defense sectors. It produces military aircraft, rotorcraft, satellites, and communication systems, along with providing related services.

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Honeywell International Inc. (NASDAQ: HON)

Honeywell is a diversified technology and manufacturing company with a significant presence in the defense sector. It supplies aerospace products, including engines, avionics, and navigation systems, as well as cybersecurity solutions.

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Pros and cons of buying military stocks

Pros

• Stability: Military companies often have long-term contracts with governments, providing a steady revenue stream;
• Innovation: These companies invest heavily in research and development, driving technological advancements;
• Global demand: The need for defense and security solutions exists worldwide, offering diverse market opportunities.

Cons

• Regulatory risks: Military contracts are subject to government regulations and geopolitical factors, which can impact business operations;
• Ethical considerations: Some investors may have ethical concerns about profiting from the sale of weapons and military equipment;
• Cyclical nature: Defense spending can fluctuate depending on geopolitical tensions and economic conditions, affecting company performance.

How to buy military stocks safely

Investing in military companies requires careful consideration and due diligence. Here are some tips for buying their stocks safely:

• Research: Understand the company’s business model, financial performance, and competitive landscape before investing;

• Diversification: Consider including military companies’ stocks as part of a diversified investment portfolio to spread risk;

• Monitor geopolitical developments: Stay informed about geopolitical tensions and defense spending trends that could impact the industry;

• Long-term perspective: Military contracts often span several years, so adopt a long-term investment approach to ride out market fluctuations.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

FAQs about the 10 biggest military companies

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eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available. Don’t invest unless you’re prepared to lose all the money you invest.