The world’s 100 largest defense companies recorded less revenue in 2022, despite the war in Ukraine. According to a report published today by the Stockholm peace research institute Sipri, they generated $597 billion (around €543.4 billion), 3.5% less than the previous year.
At the same time, however, companies acquired a significantly greater number of orders. Sipri therefore expects significantly higher revenues in the coming years.
Relatively long delivery times
Sipri explained development with capacity bottlenecks, especially in the US. Companies often needed a lot of time to expand their production. Some of his unfinished commissions date back to before the war in Ukraine. Orders received in 2022 would probably only be reflected in companies’ balance sheets two to three years from now.
US and Russian companies contributed most to the decline in revenue. According to Sipri, North American companies recorded combined revenues of US$302 billion. This corresponded to a decline of 7.9 percent. Russian companies had to deal with a 12% decline.