Ukrainian arms manufacturer, Ukroboronprom, announces a significant income surge of $31.5 million, attributing the increase to a threefold expansion in production.
Ukraine's giant defense conglomerate, Ukroboronprom, reported a jaw-dropping net profit of Hr 1.31 billion ($31.5 million) for the past year, according to a press release on their website. This powerhouse is a leading strategic manufacturer of weapons and military hardware in Ukraine, with a whopping 100 enterprises under its umbrella that create weapons, military equipment, and ammunition, such as missiles, drones, and armored vehicles.
The company's production volumes tripled in 2024 compared to the previous year, with a substantial 36% increase in contracts. Almost all production (96%) consisted of new or upgraded military equipment, highlighting their commitment to modernizing Ukraine's Defense Forces.
Ukroboronprom's Director General, Oleg Gulyak, proudly declared, "We began manufacturing new weapons that substantially enhanced the capabilities of Ukraine's Defense Forces." Most of the profits are earmarked for weapons production, expanding facilities, relocating operations, and building new manufacturing capabilities, with a smaller portion reserved for the state budget as dividends.
This power move catapulted Ukroboronprom into the global top 50 defense companies for the first time, climbing an impressive 16 spots from 65th place in 2023. Their revenue surged a staggering 72% to an impressive $2.2 billion, making them the fastest-growing among the world's top 100 defense manufacturers.
Ever since Russia's full-scale invasion, Ukraine has significantly ramped up its weapons production, focusing intently on unmanned systems. Deputy Defense Minister Valerii Churkin previously mentioned that over 95% of the drones used by Ukrainian forces at the front line are domestically manufactured.
While the 2024 specific top 50 global defense companies list isn't fully detailed in public sources, key leaders and trends are emerging. Boeing still reigns as the world's most valuable aerospace/defense brand, with a 12% increase in brand value to $18 billion. Saab (Sweden) is the fastest-growing defense brand, soaring 59% in value due to heightened European defense spending. For a comprehensive top 50 list, consult specialized industry reports like Defense News Top 100 or SIPRI Yearbook.
- Ukroboronprom, given the significant increase in its net profit and global ranking, will likely continue to manufacture advanced weapons in 2023, contributing to the modernization of Ukraine's Defense Forces.
- As Ukroboronprom continues to succeed, a portion of its profits might be expected as dividends to the state budget, reflecting the government's strategic investment in the defense sector's growth.
- With the rapid progress in defense technology, particularly in the production of unmanned systems, it's reasonable to anticipate that Ukroboronprom will continue to expand its technological capabilities, keeping pace with the leading global defense companies in the coming years.
