BAE Systems

BAE Systems plc is a British multinational aerospace and arms manufacturer. According to the Stockholm International Peace Research Institute (SIPRI), the company is the world’s fourth-largest arms producer, with approximately $34 billion in arms sales in 2023, constituting the overwhelming majority of its revenue. Its product portfolio includes purpose-built weapons platforms such as combat vehicles, naval ships, artillery systems, and electronic warfare equipment. The company is a principal contractor for major defense programs, including the F-35 fighter jet and the UK’s next-generation nuclear submarine fleet. In early 2026, BAE Systems announced more than $500 million in new defense contracts for various military vehicles and systems.

The company has a history of regulatory violations related to its core defense business. In 2011, BAE Systems agreed to pay up to $79 million to the U.S. State Department for violating military export rules. More recently, a subsidiary, BAE Systems Land & Armaments, was accused by the U.S. government of incorrectly billing labor rates on a tactical vehicle contract, allegedly adding $11 million to the cost. As a manufacturer of specialized weapons and military platforms where defense revenue is material and central to its operations, BAE Systems meets the threshold for exclusion under military contracting.