With conflicts in Ukraine and Gaza not letting up, as well as, new ones escalating in Asia, the U.S. is seeing an increase in defense spending. This spending has resulted in defense contractors playing an even bigger role in national security. Companies like Lockheed Martin and RTX have witnessed a significant increase in contracts.
According to a report by USAspending.gov, the FY23 defense contract obligations totaled $466.3 billion, up 10 % from FY22. The top 100 Defense contractors account for 62% of those obligated dollars. The DoD’s available funding in FY23 was down 7.3 %, at $1.52 trillion, versus $1.64 trillion in FY22.
Top 10 U.S. Defense Contractors
Here are the top 10 U.S. Defense Contractors in FY23.
1. Lockheed Martin
Lockheed Martin Corp. is the top contracting agency for the second year. In 2023, their contracts totaled $68.5 million, which topped 2022 at a total of $46.2 million in DoD contracts. This is thanks to their continued contract with the F-35 Joint Strike Fighter.
2. RTX
Raytheon Technologies Corp. (Now RTX) came in at third in 2022, with $26.1 million. In FY23, they made it to second place with $27.8 million. In FY22, their big award wins were the SeaSparrow Missile System and a nearly $20 million program with DARPA.
3. Boeing
The Boeing Co. was ranked in fifth place last year. FY22 listed them with $14.8 million and this FY23, they nabbed $21.7 million in contracts.
4. General Dynamics
General Dynamics Corp dropped from their FY22 third place, but according to the report still took in $22.9 million in DoD contracts, putting them in 4th for FY23. Last their contracts topped out at $21.5 million. General Dynamics has one of the top-funded contracts with the SSN-774 Virginia Class
5. Northrop Grumman
Northrop Grumman Corp increased their ranking from sixth to fifth in FY23. FY22 spending was $13.7 million, compared to FY23’s $15 million. At the end of FY23, the company announced that they had won $585 million in U.S. DoD contracts for new radar systems
6. HII
Huntington Ingalls Industries Inc. managed to jump three spots, from ninth in FY22. Their contracted dollars also jumped from $5.3 million to $9.1 million in FY23.
7. Humana
Humana Inc. kept its seventh-place position with the slightest increase in spending. Their FY23 contract amount was $7.78 million compared to FY22’s $7.74 million.
8. BAE
BAE Systems PLC jumped up two places in FY23. Their FY23 spending dollars increased from $5 million to $7.5 million. In December, BAE announced a U.S. Army contract to operate the Holston Army Ammunition Plant with a ceiling value of $8.8 billion, with a base period of 10 years.
9. L3Harris
L3Harris Technologies Inc. dropped from eighth place in FY22, even with a slight increase in DoD contract funding. Their FY22 was $6.7 million versus FY23’s $6.3 million.
10. Atlantic Diving Supply
Atlantic Diving Supply Inc. broke into the top 10 this year from last year’s 12th place with $3 million. FY23 brought them higher with a total of $4.4 million in funding.
For a full list of the top 100 defense contractors in 2023, visit Forecast International.
