Who Profits From War?

When armed conflict breaks out, the human cost is immediate and devastating—lives lost, homes destroyed, and communities displaced. But while civilians suffer the consequences, a small group of industries and individuals consistently profit from war. Understanding who benefits—and how—is essential to evaluating the broader implications of military action.

1. Defense Contractors

The most direct financial beneficiaries of war are defense contractors—companies that manufacture weapons, vehicles, and other military technology. U.S.-based firms like Lockheed Martin, Raytheon Technologies, Boeing, and Northrop Grumman are among the top global players.

• In 2023, Lockheed Martin reported $66 billion in net sales—74% of which came from the U.S. government.
• The global military spending in 2023 hit a record $2.4 trillion, with the U.S. accounting for $916 billion, according to the Stockholm International Peace Research Institute (SIPRI).

When conflicts arise, demand for weapons and defense systems increases. Following the Russian invasion of Ukraine in 2022, for instance, U.S. defense stocks spiked, and Congress approved tens of billions in aid—much of which was used to purchase weapons from these firms.

2. Oil and Energy Corporations

War and geopolitical instability often disrupt energy markets, leading to price spikes that benefit major oil and gas companies.

• After the war in Ukraine began, ExxonMobil posted a record profit of $56 billion in 2022—the highest annual profit in its history.
• The price of oil surged to over $120 per barrel in mid-2022, significantly increasing revenue for fossil fuel companies.

Instability in energy-producing regions can be leveraged by these corporations, who may gain access to new markets, negotiate favorable contracts, or see increased demand due to supply disruptions.

3. Private Military Contractors

Private military and security companies, like Academi (formerly Blackwater), DynCorp, and Wagner Group, offer services ranging from logistics and training to armed combat. These firms are often hired by governments and corporations operating in war zones.

• During the Iraq War, contractors made up over 50% of U.S. personnel on the ground, and billions were spent on private security services.
• In Afghanistan, the U.S. spent nearly $108 billion on reconstruction contracts—many of which went to private contractors with limited transparency or oversight.

These companies often operate with fewer restrictions than national militaries and have been criticized for lack of accountability.

4. Politicians and Investors

Some policymakers and elected officials hold stocks in defense companies, creating potential conflicts of interest. While legal under current rules, this raises ethical concerns about war-related decision-making.

• A 2022 New York Times investigation found that 97 members of Congress or their immediate families had traded stocks in companies tied to their committee work—including defense and foreign affairs.
• Following major military events, defense stocks often outperform the market in the short term, benefiting investors positioned in advance.

Critics argue that public officials should not be allowed to invest in industries that they regulate or influence through policy decisions.

5. Media Companies

While not directly profiting from war, media outlets often experience increased viewership during times of conflict. This can result in higher advertising revenue and subscription rates.

• A 2022 Pew Research study found that cable news ratings surged in the days following Russia’s invasion of Ukraine.
• Major networks often receive exclusive access or interviews during conflicts, further boosting their relevance and reach.

However, this can incentivize sensationalized or one-sided coverage, especially if conflict coverage drives clicks and ad revenue.

Who Bears the Cost?

While these sectors profit, the public pays—both financially and personally. U.S. taxpayers fund the military budget, which in 2023 accounted for over half of discretionary federal spending. Veterans return from war with physical and psychological wounds, often facing inadequate support. Civilians in conflict zones suffer the most: According to the UN, over 33,000 civilians have been killed in the conflict in Gaza since October 2023 alone.

War creates winners and losers—but not in the ways most people imagine. Defense contractors grow richer, energy firms post record profits, and political investors benefit from insider access. Meanwhile, the costs—economic, emotional, and human—are absorbed by the general population.

Understanding who profits from war isn’t about being cynical. It’s about being informed.