Have European arms companies increased their profits because of the wars?

The world's 600 largest arms companies posted profits of nearly $XNUMX billion last year amid the wars in Gaza and Ukraine and a generally tense geopolitical situation. € news.

Companies that produce weapons and other military services increased their profits worldwide by 4.2 percent, reaching profits of 598 billion euros in 2023, according to an analysis by the Stockholm International Peace Institute (SIPRI).

In Europe, arms companies' profits rose 0.2 percent, a relatively smaller regional increase that does not accurately reflect an increase in orders and demand, according to the study.

The main arms companies that kept their place in the top 100 are the pan-European company Airbus, Leonardo in Italy, Thales in France, Rolls Royce in the United Kingdom and Rheinmetall in Germany.

Airbus, a company best known for making airplanes, saw profits from weapons make up 18 percent of its total revenue by 2023.

The Franco-German company is based in France and its weapons have been linked to the conflict in Yemen, as well as surveillance projects against migrants trying to enter Europe through Mediterranean countries.

In 2018, Airbus signed a $600 million (€570 million) deal with Israel Aerospace Industries as part of ongoing cooperation between the two countries in drone warfare, allowing Heron TP drones to be leased to the Ministry of German defense.

German arms companies reported that their revenues rose sharply, mainly as a result of demand related to the war in Ukraine. Rheinmetall, a company based in Dusseldorf, increased its profits by 10 percent, due to the production of 155 mm ammunition and deliveries of its Leopard tanks to Kiev.

The highest profits

The profits from these companies are bigger than the data shows, says Lorenzo Scarazzato, researcher for SIPRI.

Smaller companies in Sweden, Ukraine, Poland, Norway and the Czech Republic had a large increase in orders, launched recruitment efforts and increased their profits significantly, indicating an overall increase in demand that has not yet been reflected in player earnings. bigger ones.

"We will see in the coming years that this is just the beginning, because we have seen how the smaller players have been involved in the growth of revenues, in this global growth. But the biggest players are still not reflecting these demands," said Scarazzato.

"Once these larger companies, both in Europe and the US, create these demands, we will see a significant increase," added the researcher from SIPRI.

Turkish companies also had a big boost, partly due to the country's intentions to become self-reliant in arms production, but also because of exports related to the war in Ukraine.

Turkish company Baykar, which makes armed drones widely used in Ukraine, saw its profits rise 25 percent to $1.9 billion (€1.8 billion).

Elsewhere, SIPRI's analysis shows that all arms companies are focused on modernizing their nuclear weapons, with nuclear development being an important source of profit for arms companies.

In the United Kingdom, the Nuclear Weapons Establishment, which designs, manufactures and maintains nuclear warheads, recorded the largest percentage increase in profit of all British companies in the top 100, reaching $2.2 billion (€2 billion ). /Telegraph/