BIG DEAL| PROFITS OF WAR: Defence Firms Rake In $679bn As Human Cost Soars

Soldiers stand guard in front of an IRIS-T SLM air defence system before the arrival of former German Chancellor Olaf Scholz and top military commanders at the Todendorf military base on September 4, 2024, in Panker, Germany | Credit: Gregor Fischer/Getty Images

In 2024, while families in Gaza sobbed over the loss of loved ones and buried them, and Ukrainians scampered for safety from a fusillade of bombs and sporadic bombardments, the world’s largest arms companies quietly celebrated record profits.

 According to the Stockholm International Peace Research Institute (SIPRI), the top 100 defence firms earned $679 billion last year, about ₦538.2 trillion— a surge of nearly 6 per cent compared to 2023.

Behind those figures are lives disrupted, homes destroyed, and communities living under the shadow of war. This investigation examines how conflicts became business opportunities and who is paying the real price.

Profits

Even though countless lives have been lost, properties destroyed, and many rendered homeless, arms dealers and manufacturers celebrated rising revenues. US giants like Lockheed Martin and General Dynamics grew revenues to $334 billion, even as projects like the F-35 fighter jet faced delays and ballooning costs.

Elon Musk’s SpaceX entered the defence market with $1.8 billion in military sales, marking its first appearance on SIPRI’s list.

While in Europe, the Czechoslovak Group saw a staggering 193 per cent jump, fueled by artillery shells bound for Ukraine’s frontlines.

For investors, these are success stories. For civilians, they are reminders that every shell, missile, and drone translates into shattered lives.

A US Air Force B-52H strategic bomber, top, flies with South Korean Air Force F-35A fighter jets during a joint air drill on April 14, 2023, at an undisclosed location in South Korea after North Korea test-fired a new intercontinental ballistic missile | Credit: South Korean Defence Ministry via Getty Images

Regional Fault Lines

Russia’s Rostec and United Shipbuilding Corporation increased revenues by 23 per cent despite sanctions, raising questions about the effectiveness of sanctions enforcement.

In Asia, corruption scandals crippled China’s defence industry, while South Korea’s Hanwha Group thrived, exporting weapons to conflict zones.

In the Middle East, Israeli firms earned $16.2 billion, buoyed by demand for drones and air defence systems during the Gaza war — a war that has killed tens of thousands of Palestinians.

Civilians Groan

Armal, a mother of three in Rafah said, My children ask why the sky is always full of drones. For companies, it is profit. For us, it is fear every day.

In Kharkiv, Oleksandr, a retired teacher, described the sound of artillery shells, “Each explosion is someone’s revenue report. For us, it is another neighbour gone.”

Ji-woo, a student in Seoul, reflected on her country’s booming arms exports, “We hear about billions in sales, but what does it mean when our future is tied to weapons?”

Humanitarian Crises Deepen

Every percentage increase in revenue represents more weapons shipped, more battles fought, and more civilians caught in the crossfire. SIPRI’s report highlights how war economies thrive while humanitarian crises deepen.

Children grow up under bombardment while defence companies tally profits in Gaza, as in Ukraine, artillery shells mean survival for some, but devastation for others, while in Asia, corruption scandals delay modernisation, but ordinary citizens still face rising insecurity.

Who Do Crises, Wars Benefit?

Do governments, corporations, or the citizens they claim to protect reap anything tangible from war? Are sanctions enough to discourage conflicts or the waging of war? Will companies whose earnings depend solely on war and crises ever be held accountable?

Conclusion

The SIPRI data is more than a ledger of profits. It is a mirror reflecting the paradox of our time: while wars tear communities into pieces, corporations smile home with high revenues. The arms trade is not just about balance sheets — it is about lives, ethics, and the uncomfortable reality that human suffering has become a global business model.

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