The world’s largest aerospace and defence companies are set to rake in record levels of cash over the next three years as they benefit from a surge in government orders for new weapons amid rising geopolitical tensions.
The leading 15 defence contractors are forecast to log free cash flow of $52bn by the end of 2026, according to analysis by Vertical Research Partners for the Financial Times — almost double their combined cash flow at the end of 2021.
Five top US defence contractors are forecast to generate cash flow of $26bn by the end of 2026, more than double their combined cash flow over the same period. The figures exclude Boeing, given its recent problems and heavy weighting towards civil aerospace.