America’s 15 Biggest Defense Contractors

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1. Lockheed Martin Corp. (NYSE: LMT)
> 2017 funding obligations: $50.70 billion
> Market cap: $85.15 billion
> Total revenue: $51.05 billion
> Net income: $2.00 billion
> Shares outstanding: 285.57 million
> Employees: approximately 100,000

Lockheed Martin is a pure-play defense contractor. The company builds and sells military aircraft, missiles, drones, fire control systems, helicopters, ships, and space systems. The government accounts for nearly all of Lockheed’s business, as the amount of federal funds obligated to the company accounted for nearly all of its full-year 2017 revenue. Lockheed captured nearly 18% of all federal procurement last year. The company’s headline program is the F-35 Lightning II Joint-Strike Fighter that is projected to haul in $1 trillion over its 60-year lifespan. For the current fiscal year, analysts forecast revenue of $51.33 billion and have a 12-month consensus price target on the stock of $371.89. Lockheed has cut some 26,000 employees since 2015.

Source: U.S. Marine Corps photo by Cpl. Michelle Reif / defense.gov

2. The Boeing Co. (NYSE: BA)
> 2017 funding obligations: $23.36 billion
> Market Cap: $194.29
> Total Revenue: $93.39 billion
> Net Income: $8.20 billion
> Shares outstanding: 588.45 million
> Employees: approximately 140,800

Military programs, including the KC-46A tanker, the F/A-18 Super Hornet, and Apache combat helicopter, accounted for more than $21 billion of Boeing’s fiscal year 2017 revenue, about 22% of the company’s total revenue. Like most of the other companies on this list, Boeing sells military systems internationally. The company expects $21.5 billion to $22.5 billion in military revenue for this year and has a backlog of $50 billion, 36% of which represents orders from foreign buyers. For the current fiscal year, analysts forecast revenue of $97.88 billion and have a 12-month consensus price target on the stock of $398.13.

Source: Tomás Del Coro / Wikimedia Commons

3. General Dynamics Corp. (NYSE: GD)
> 2017 funding obligations: $15.34 billion
> Market Cap: $55.80 billion
> Total Revenue: $30.97 billion
> Net Income: $9.56 billion
> Shares outstanding: 296.93 million
> Employees: 98,600

The poster child for General Dynamics is its Abrams main battle tank, but the company’s information systems and technology division accounted for the most revenue. To further bolster that part of the business, GD is paying $9.7 billion, including assumed debt, to acquire military IT specialist CSRA Inc. The deal will create the second largest provider of U.S. military IT services with annual sales of around $9.9 billion. As for those tanks, the company received a $1 billion contract from the U.S. government last year to upgrade 800 of them. For the current fiscal year, analysts forecast revenue of $35.94 billion and have a 12-month consensus price target on the stock of $247.53.

Source: David Monniaux / Wikimedia Commons

4. Raytheon Company (NYSE: RTN)
> 2017 funding obligations: $14.66 billion
> Market Cap: $56.18 billion
> Total Revenue: $25.35 billion
> Net Income: $2.00 billion
> Shares outstanding: 288.51 million
> Employees: approximately 64,000

Sales to the U.S. government accounted for two-thirds of Raytheon’s total 2017 revenue, and sales to foreign governments accounted for another 13%. The company’s largest division is missile systems, which brought in about $7.8 billion of last year’s revenue. Though there were rumors in the spring of 2017 that Boeing would acquire Raytheon, that did not happen. In addition to its missile business, Raytheon’s strengths include its radar, sensor, and guidance systems, and the company is focusing more on cybersecurity. Its Forcepoint cybersecurity joint venture with Vista Equity Partners racked up $608 million in revenue in 2017 and ended the year with a total backlog of $484 million. For the current fiscal year, analysts forecast revenue of $26.78 billion and have a 12-month consensus price target on the stock of $239.89.

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5. Northrop Grumman Corp. (NYSE: NOC)
> 2017 funding obligations: $11.19 billion
> Market Cap: $53.47 billion
> Total Revenue: $25.80 billion
> Net Income: $2.02 billion
> Shares outstanding: 174.09 million
> Employees: 70,000

Northrop Grumman operates in three main divisions: aerospace systems, mission systems, and technology services. The aerospace division manufactures and sells control systems for the F/A 18 (as a partner with Boeing), the B-2 bomber, and the venerable A-10 Warthog. Earlier this month, the company’s $9.2 billion acquisition of Orbital ATK, a maker of solid-fuel rocket engines, was approved by the Federal Trade Commission. Northrop was also awarded a $103 million contract to upgrade the wings on the A-10 ground-attack aircraft, which entered service in 1977. For the current fiscal year, analysts forecast revenue of $27.43 billion and have a 12-month consensus price target on the stock of $367.50.