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Top military electronic defense primes diversify, win lion’s share Pentagon procurement budget

By VentureOutsource.com Staff

There are more than 25,000 military and defense contractors serving the US DoD. Roughly two-thirds of US Department of Defense contracts go to the top six defense primes:

  • Boeing
  • General Dynamics
  • BAE Systems
  • Raytheon
  • Lockheed Martin
  • Northrop Grumman

Major suppliers of defense products and services are profitable, showing positive earnings before interest, tax, depreciation, and amortization (EBITDA) margins.

EBITDA margin (%) for largest 6 defense primes

Major defense suppliers have seen growing demand for their products and services, driving higher sales and greater scale, helping to reduce costs and boost competitiveness.

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Chinese top defense company revenues v US, worldwide defense firms

To maintain top line growth and mitigate the cyclicality of U.S. defense spending, some firms will continue to diversify their customer base and pursue international and non-defense customers.

Big 6 primes revenue breakdown

Worldwide military and defense contract electronics providers

Today there are 1000s of contract electronics manufacturing services (EMS) providers among the many, other contractors and (sub-contractors to defense primes) also serving US armed forces. Search contract EMS providers serving ITAR compliant military/defense sector here.

Read about military defense and aerospace lead-free risks here. Read about military REACH compliance here. For information about writing military and defense requests-for-proposals (RFP) to minimize risk of rejection, go here.

Procurement – budget authority (FY 2007 – FY 2023)

Below, information on Pentagon CAGR procurement percentages for missiles, ammunition, shipbuilding and conversion, weapons, chemical agents and munitions destruction, aircraft and space.

The US defense industry should experience continued growth as DoD budget authority for operation and maintenance (O&M), procurement, and research development, test and evaluation (RDT&E) increases. The bulk of the budgeted spending is allocated to O&M followed by procurement spending.




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