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

By 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.

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.

Private message OEM peers. Access all content.

For electronic OEM professionals working in OEM companies. Connect with OEM peers and access exclusive content.

Provider spotlight

About is the leading online destination helping electronics OEM decision makers make more informed decisions and reduce risk. We offer educational Webinars, thousands of original articles and helpful tools, a community of influencers who understand the challenges facing your company today, and a comprehensive directory of electronics provider services.

Copyright Venture Outsource, LLC. All Rights Reserved
The material on this site is for informational purposes only and is not a substitute for legal, financial or professional advice. Distribution and use of this material are governed by our User Terms Agreement and by copyright law. By using our Website you agree to site Terms and Privacy policies. For questions please contact at 1-888-860-1193 or visit