Major U.S. and global defense contractors are set for a cash windfall from a historic number of weapons orders, The Financial Times reported on Monday.
The top 15 defense contractors are projected to generate roughly $52 billion in 2026, nearly double what they made in 2021, according to the Times. The industry is enjoying record numbers as governments around the world place an increasing amount of weapons orders to deal with a rise in global conflicts and tensions.
“It is a cyclical business,” Byron Callan, managing partner at Capital Alpha Partners, told the Times. “As much as people talk about 10-year demand cycles, politics can change and security assessments can change and so too can defense demand.”
Five major U.S.-based defense contractors are expected to generate $26 billion by the end of 2026, more than double what they made in 2021, according to the Times. That doesn’t include Boeing, however, as the company has recently been beset with problems and primarily focuses on civil aerospace projects to begin with.
U.S. defense contractors have also benefited from $13 billion in recent government legislation that appropriated the funds for weapons production for Ukraine, Israel and Taiwan, according to the Times. The U.S. has spent more than $70 billionon military aid for Ukraine since 2022. […]
— Read More: dailycallernewsfoundation.org
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