Who Profits from War
These five companies receive over $200 billion per year in government defense contracts. Their profits depend on conflict. Their lobbyists write the laws. Their former executives run the Pentagon. Their stock prices soar when wars begin. This is the military-industrial complex that Eisenhower warned about — and it has won.
🧠 Key Insights
- • Defense stocks returned 800–1,450% since 9/11 vs. ~450% for the S&P 500 — $10,000 invested in Northrop Grumman on September 10, 2001 would be worth $155,000 today. War is the best investment in America.
- • Defense CEOs earn ~$23M/yr — roughly 400× what a deployed soldier earns — while 80% of retiring 3- and 4-star generals go to work for the contractors they oversaw.
- • The F-35 has parts in 375 congressional districts — by design, ensuring political invincibility. The $1.7 trillion lifetime program has 800+ unresolved defects after 25 years of development.
- • Cost-plus contracts create a perverse incentive: the more a contractor spends, the more profit they make — explaining why virtually every major defense program goes over budget (B-2: 600% per-unit overrun).
- • Halliburton's CEO became Vice President, then his company got $39.5B in no-bid contracts in the war he helped start — KBR's shoddy work electrocuted 18 US soldiers in Iraq showers.
$2.4T
Contractor Spending (2020-2024)
500+
Revolving Door Officials
$70M
Defense Lobbying (2023)
$285M
Campaign Contributions
$1.7T
F-35 Lifetime Cost
“In the councils of government, we must guard against the acquisition of unwarranted influence, whether sought or unsought, by the military-industrial complex. The potential for the disastrous rise of misplaced power exists and will persist.”
— President Dwight D. Eisenhower, Farewell Address, January 17, 1961
📈 War Is Good for Business
If you had invested $10,000 in each of these companies on September 10, 2001 — the day before 9/11 — here's what you'd have today:
Lockheed
+1,236% since 9/11
since 9/11/2001
RTX
+800% since 9/11
since 9/11/2001
Boeing
+290% since 9/11
since 9/11/2001
Northrop
+1,450% since 9/11
since 9/11/2001
General
+1,100% since 9/11
since 9/11/2001
During the same period, the S&P 500 returned ~450%. Soldier pay increased ~80% (barely above inflation). CEO pay at these firms averages $23M/yr — roughly 400× what a deployed soldier earns.
The Big Five
Lockheed Martin
$65.4B
Annual Revenue
74%
From Government
$75B+
Gov Contracts
$25.2M
CEO Compensation
122,000
Employees
$12.5M/yr
Lobbying Spend
645
Revolving Door Officials
F-35 Joint Strike Fighter — $1.7 trillion lifetime cost
Biggest Program
Products: F-35, F-22, THAAD, Javelin missiles, Sikorsky helicopters, satellite systems
World's largest defense contractor. Receives more federal contract dollars than any company on earth. CEO compensation: $25M/yr. Has employed more former Pentagon officials than any other contractor.
In 2023, Lockheed received $46B in direct DoD contracts — roughly $126M per day. The company spent $12.5M on lobbying and contributed $6.2M to political campaigns. 74% of its revenue comes directly from US government contracts. F-35 parts are manufactured in 45 states and 375 congressional districts — by design, ensuring every member of Congress has a financial interest in the program.
View full profile with USAspending data →RTX (Raytheon)
$68.9B
Annual Revenue
52%
From Government
$36B+
Gov Contracts
$22.4M
CEO Compensation
185,000
Employees
$8.7M/yr
Lobbying Spend
280
Revolving Door Officials
Patriot Air Defense System — deployed in 18 countries
Biggest Program
Products: Patriot missiles, Tomahawk cruise missiles, Stinger MANPADS, radar systems, Pratt & Whitney engines
Merged with United Technologies in 2020. Former Secretary of Defense Lloyd Austin sat on Raytheon's board before joining the Biden administration. Makes the missiles that Saudi Arabia drops on Yemen.
Raytheon weapons have been identified in strikes on Yemeni civilians, including a 2018 school bus bombing that killed 40 children. The bomb was a Raytheon MK-82. The company's stock price rose 60% during the first year of the Ukraine war. Former CEO Thomas Kennedy earned $26.4M in 2019 while the company's products were killing children in Yemen.
View full profile with USAspending data →Boeing
$66.5B
Annual Revenue
37%
From Government
$28B+
Gov Contracts
$22.6M
CEO Compensation
171,000
Employees
$11.8M/yr
Lobbying Spend
310
Revolving Door Officials
KC-46 Pegasus Tanker — $44B program, years behind schedule
Biggest Program
Products: F/A-18, F-15EX, KC-46 tanker, Apache helicopters, P-8 Poseidon, satellites
Also makes commercial planes that keep losing doors mid-flight. The KC-46 tanker is years behind schedule and billions over budget. Boeing merged with McDonnell Douglas in 1997 — critics say the merger's cost-cutting culture led to both military and civilian quality failures.
Boeing has paid over $2.5B in fines and settlements for fraud, safety violations, and contract disputes since 2006. The company spent $11.8M on lobbying in 2023 and $7.3M on campaign contributions. Quality control issues have plagued both its commercial and military divisions. Two 737 MAX crashes killed 346 people due to Boeing's cost-cutting culture.
View full profile with USAspending data →Northrop Grumman
$39.3B
Annual Revenue
83%
From Government
$32B+
Gov Contracts
$23.6M
CEO Compensation
100,000
Employees
$13.1M/yr
Lobbying Spend
195
Revolving Door Officials
B-21 Raider — next-gen stealth bomber, ~$750M per plane
Biggest Program
Products: B-21 Raider stealth bomber, Global Hawk drone, James Webb Telescope, cyber warfare systems
83% of revenue from government — essentially a government entity with private profits. Built the B-2 stealth bomber at $2.1B each (only 21 built). Now building the B-21 at an estimated $750M each.
Northrop is the most government-dependent of the Big Five. The B-2 program's original estimate was $35B for 132 planes; final cost was $45B for 21 planes — a 600% per-unit cost overrun. The company spent $13.1M on lobbying in 2023, the most of any defense contractor. Its stock has returned 1,450% since 9/11 — turning $10,000 into $155,000.
View full profile with USAspending data →General Dynamics
$42.3B
Annual Revenue
62%
From Government
$26B+
Gov Contracts
$22.3M
CEO Compensation
106,000
Employees
$9.2M/yr
Lobbying Spend
175
Revolving Door Officials
Columbia-class Nuclear Submarine — $128B program
Biggest Program
Products: Virginia-class submarines, Abrams tanks, Stryker vehicles, Gulfstream jets, IT systems
Builds nuclear submarines at $3.4B each and Abrams tanks at $10M each. Also owns Gulfstream — so they profit from war AND sell luxury jets to the executives who profit from war.
The Columbia-class submarine program is the Navy's #1 priority at $128B for 12 boats. General Dynamics also runs a massive IT business handling classified government systems. CEO compensation: $22M/yr. The company that builds weapons of mass destruction also makes the luxury jets that defense executives fly to lobbying meetings.
View full profile with USAspending data →The Next Five
L3Harris Technologies
Communications, surveillance, electronic warfare
Formed from 2019 merger. Major supplier of ISR (intelligence, surveillance, reconnaissance) systems.
Leidos
IT, cybersecurity, intelligence analysis
Formerly SAIC. Largest IT services provider to the US government.
Huntington Ingalls
Aircraft carriers ($13B each), submarines, destroyers
The only company that builds US aircraft carriers. Monopoly supplier.
BAE Systems (US)
Armored vehicles, electronic warfare, munitions
UK-based but major US defense contractor. Makes the Bradley Fighting Vehicle.
SAIC
IT services, training, simulation
Major intelligence community contractor. Provides analysis services across multiple agencies.
💰 Cost-Plus Contracts: The Perverse Incentive
Many defense contracts are structured as “cost-plus” — the government pays the contractor's actual costs plus a guaranteed profit percentage (typically 10-15%). This creates a perverse incentive: the more a contractor spends, the more profit they make.
Under cost-plus, there is zero incentive to be efficient, innovate, or deliver on time. In fact, cost overruns increase profits. This explains why virtually every major defense program goes over budget:
- F-35: Original estimate $233B → current $400B+ acquisition, $1.7T lifetime
- B-2 bomber: Estimated $35B for 132 planes → actual $45B for 21 planes
- Gerald Ford aircraft carrier: Estimated $10.5B → actual $13.3B+
- KC-46 tanker: Years behind schedule, billions over budget
- Littoral Combat Ship: $220M each → $500M+ each; many combat-ineffective
- Zumwalt destroyer: Planned 32 ships at $1.3B each → built 3 at $8.2B each
In the private sector, a company that delivered products years late and billions over budget would lose its contracts. In defense, it gets more contracts. Because there are only 2-3 companies capable of building most weapons systems, they have monopoly or oligopoly power. The Pentagon is a captive customer.
⚖️ Contractor Fraud & Scandals
Halliburton/KBR
$40B+ in Iraq contractsDick Cheney was Halliburton's CEO from 1995-2000, then became Vice President and helped start the Iraq War. Halliburton's subsidiary KBR received $39.5B in Iraq contracts — many no-bid or cost-plus. KBR charged $45 per case of soda. Overcharged $61M for fuel. Billed $100M for meals never served. KBR's shoddy electrical work in Iraq electrocuted at least 18 US soldiers in showers and pools due to faulty wiring.
Boeing
$2.5B in fines/settlementsPaid $615M to settle fraud charges (2006). Agreed to $2.5B settlement over 737 MAX crashes that killed 346 people (2021). Charged with defrauding the government on multiple military contracts. KC-46 tanker billions over budget.
Lockheed Martin
$200M+ settlementsPaid $10.5M for overcharging on contracts (2008). Settled false claims cases repeatedly. F-35 program has over 800 unresolved defects despite $400B+ in spending.
Blackwater/Academi
Multiple criminal casesBlackwater contractors massacred 17 Iraqi civilians at Nisour Square in 2007. Four were convicted of murder (later pardoned by Trump). The company rebranded twice to escape its reputation. Founder Erik Prince now provides mercenary services to the UAE and China.
DynCorp
Trafficking allegationsEmployees were involved in sex trafficking in Bosnia (1999). Employees ran a sex slave ring involving minors in Afghanistan. The company continued receiving billions in government contracts. Whistleblower Kathryn Bolkovac was fired for reporting the crimes.
CACI International
Abu Ghraib involvementCACI contractors were among those who tortured prisoners at Abu Ghraib, Iraq. Despite documented involvement in the abuse, CACI continues to receive government contracts worth billions.
⚠️ Contractor Casualties: The Hidden Deaths
An estimated 8,000 private military contractors died in Iraq and Afghanistan — tracked by the Department of Labor, not the Pentagon, keeping them out of official casualty counts.
Iraq (2003-2011)
At peak, more contractors than US troops in Iraq. Their deaths are tracked by Dept of Labor, not DoD.
Afghanistan (2001-2021)
Contractor deaths exceeded military deaths in several years. Most were non-US nationals.
Other operations
Contractors killed in Syria, Africa, and elsewhere are largely untracked.
Many contractor casualties were non-US nationals — Iraqis, Afghans, Filipinos, and others hired for dangerous work at a fraction of American wages. Their deaths receive no public attention and minimal compensation.
🚪 The Revolving Door: Names and Positions
Over 500 former senior Pentagon officials and military officers now work as lobbyists, board members, or executives for defense contractors. Here are the most prominent examples:
Lloyd Austin
Went from a $1.4M/yr Raytheon board position to overseeing Raytheon's largest customer. Received a waiver from the 7-year cooling-off requirement.
Mark Esper
Spent 7 years as Raytheon's top lobbyist before becoming Defense Secretary. Now works at private equity firms with defense investments.
James Mattis
Also sat on the boards of other defense companies. Returned to private sector after leaving government.
Patrick Shanahan
Investigated for using his position to promote Boeing. Resigned before confirmation hearing. Returned to the private sector.
Ash Carter
Wrote the nuclear posture review while in government; advised nuclear weapons contractors afterward.
Leon Panetta
Founded a consulting firm that advises defense contractors on government procurement.
Mike Rogers
Advocated for surveillance expansion while in Congress; profits from surveillance industry after.
Between 2004 and 2008, 80% of retiring three- and four-star generals went to work for defense contractors or consultants. The revolving door ensures that the people deciding how to spend defense dollars are the same people who profit from those decisions — before, during, or after their government service.
“It is difficult to get a man to understand something when his salary depends upon his not understanding it.” — Upton Sinclair
🛩️ Case Study: The F-35 Joint Strike Fighter
$1.7T
Lifetime Program Cost
800+
Unresolved Defects
25+ Years
In Development
The F-35 is the most expensive weapons program in human history. Originally estimated at $233B, the program has ballooned to over $400B in acquisition costs alone, with lifetime operating costs pushing the total to $1.7 trillion. The plane was supposed to be operational by 2012 — it's still not fully combat-ready.
A 2021 Pentagon testing office report identified over 800 unresolved defects. The plane's software alone required 8.6 million lines of code — more than the Space Shuttle, an aircraft carrier, and an Aegis destroyer combined. Yet Lockheed Martin continues to receive tens of billions per year for the program.
Why does it continue? Because Lockheed strategically placed F-35 suppliers in 45 states and 375 congressional districts. Cutting the program means cutting jobs in nearly every member of Congress's district. This is the military-industrial complex by design.
📊 The Pentagon Has Never Passed an Audit
The Department of Defense is the only federal agency that has never passed a comprehensive financial audit. It has failed every year since audits became mandatory in 2018 — seven consecutive failures.
The Pentagon manages $3.8 trillion in assets and spends $886B per year, yet cannot account for where the money goes. In 2023, auditors found $1.9 trillion in accounting adjustments — entries that didn't match any transaction. The DoD Inspector General has identified over $220B in “unsupported adjustments” in a single year.
If a private company failed an audit seven years in a row, its executives would face criminal prosecution. The Pentagon gets a budget increase. If a defense contractor defrauded the government, it would lose future contracts — except in defense, where fraud results in settlement payments that amount to a fraction of profits, and contracts continue uninterrupted.
💡 Did You Know?
- • The top 5 defense contractors spend a combined $55M+ per year on lobbying Congress.
- • Defense contractor CEOs earn an average of $20-25M per year — roughly 400× what a deployed soldier earns.
- • The defense industry employs more registered lobbyists than there are members of Congress.
- • During the 20-year War on Terror, defense contractor stock prices increased by 1,000%+ while troop wages grew less than inflation.
- • Lockheed Martin's annual revenue exceeds the GDP of 100+ countries.
- • Halliburton's CEO became Vice President, then his old company got $39.5B in no-bid contracts in the war he helped start.
- • KBR's shoddy electrical work electrocuted 18 US soldiers in Iraq showers and pools.
- • Blackwater contractors massacred 17 Iraqi civilians at Nisour Square. They were later pardoned by President Trump.
- • 80% of retiring 3- and 4-star generals go to work for defense contractors.
- • The F-35 has parts in 375 congressional districts — ensuring political invincibility.
Related Analysis
- → The Military-Industrial Complex — deep dive
- → Military Spending — $886B/yr and counting
- → Arms Sales — who buys American weapons
- → Jobs vs. War — military spending creates the fewest jobs
- → Silicon Valley & the Pentagon — the new military-tech complex
- → Weapons Systems — $3T in programs, massive overruns
- → Full Contractor Directory — 62 companies with USAspending data
All DoD Contractors (FY2024 USAspending Data)
Contract award data from USAspending.gov. Subsidiaries consolidated under parent companies.
| # | Contractor | FY2024 Awards |
|---|---|---|
| 1 | Lockheed Martin | $47.8B |
| 2 | Boeing | $19.4B |
| 3 | RTX Corporation | $18.8B |
| 4 | General Dynamics | $12.5B |
| 5 | Northrop Grumman | $10.5B |
| 6 | Humana | $8B |
| 7 | Huntington Ingalls Industries | $7.5B |
| 8 | AmerisourceBergen | $6.1B |
| 9 | Atlantic Diving Supply | $4.7B |
| 10 | BAE Systems | $4.6B |
| 11 | L3Harris Technologies | $3.6B |
| 12 | Health Net Federal Services | $3.5B |
| 13 | Amentum | $3.2B |
| 14 | Booz Allen Hamilton | $2.6B |
| 15 | General Electric | $2.6B |
| 16 | Leidos | $2.5B |
| 17 | GENERAL ATOMICS AERONAUTICAL SYSTEMS, INC. | $2.2B |
| 18 | OKINAWA IDEMITSU K.K. | $2.2B |
| 19 | SAIC | $2.2B |
| 20 | BECHTEL PLANT MACHINERY, INC. | $2.2B |
| 21 | BATH IRON WORKS CORPORATION | $2.1B |
| 22 | SPACE EXPLORATION TECHNOLOGIES CORP. | $1.8B |
| 23 | DELL MARKETING L.P. | $1.8B |
| 24 | FLUOR MARINE PROPULSION, LLC | $1.6B |
| 25 | VECTRUS SYSTEMS LLC | $1.6B |
| 26 | UNITED LAUNCH SERVICES, LLC | $1.5B |
| 27 | THE JOHNS HOPKINS UNIVERSITY APPLIED PHYSICS LABORATORY LLC | $1.5B |
| 28 | CACI, INC. - FEDERAL | $1.5B |
| 29 | MASSACHUSETTS INSTITUTE OF TECHNOLOGY | $1.5B |
| 30 | NATIONAL STEEL AND SHIPBUILDING COMPANY | $1.4B |
Data Sources
- • USAspending.gov — federal contract award data (primary source)
- • Federal Procurement Data System (FPDS) — contract details
- • Government Accountability Office (GAO) — defense contracting oversight reports
- • Project on Government Oversight (POGO) — Federal Contractor Misconduct Database
- • Congressional Research Service (CRS) — “Defense Acquisitions” reports
- • SEC filings — contractor annual reports and 10-K filings
- • Special Inspector General for Iraq/Afghanistan Reconstruction (SIGIR/SIGAR)