Defense Industry Companies

Recent global turmoil has shown that in this century, warfare will increasingly unfold under the influence of software and technology. Looking back over the past few centuries, we can observe in modern history books that military power once focused heavily on numbers, alongside its economic impact.

Recent global turmoil has shown that in this century, warfare will increasingly unfold under the influence of software and technology. Looking back over the past few centuries, we can observe in modern history books that military power once focused heavily on numbers, alongside its economic impact.

As we transition into a new order where economic conflicts and political figures change frequently, having a technological infrastructure that can influence inter-country competition is becoming increasingly valuable. In parallel with technological advancements, the field of reverse engineering has also found new ground for development.

If we look at the last decade, integration of data and analytical software platforms into customers’ existing systems often took weeks, months, or even years. Now, with the support of artificial intelligence, platforms can be ready for use within just a few hours. Before the advancements in AI, global companies invested hundreds of millions of dollars in data integration projects that were often insufficient or failed. Today, these same companies can begin to derive meaningful insights from their data within just a few weeks. The growing prevalence of Large Language Models (LLMs) and the widespread interest they have attracted have made it easier to grasp the potential power of the knowledge network behind these complex systems.

It is natural for people to be concerned about the military applications of AI—particularly the potential for autonomous systems capable of independently selecting targets and initiating attacks. However, companies operating in this space emphasize that their software, including systems responsible for target selection and mission planning, is designed not only to eliminate threats but also to protect innocent lives.In this content, we will examine three global firms that provide products and services at scale, along with their financial developments.

1. Palantir

Founded in 2003 by Peter Thiel, Stephen Cohen, Joe Lonsdale, and Alex Karp, Palantir Technologies Inc. began its journey as a company focused on the defense industry. Over time, it has continued to grow through its development of products centered on big data analytics, artificial intelligence, and real-time operational decision support.

The company offers a variety of solutions specifically designed for defense. Below are some key insights and applications related to Palantir:

Palantir Gotham

Palantir Gotham is a platform that supports defense and intelligence operations by analyzing data from multiple sources and formats. In addition to providing real-time monitoring of locations and units, it is designed to enhance and accelerate the decision-making processes of organizations operating in defense and intelligence sectors. The platform allows these institutions to conduct deep analysis on collected data.

Gotham is currently in use by the U.S. Department of Defense, the FBI, and other global defense and law enforcement agencies.

In a market dominated by major defense players such as Raytheon, Lockheed Martin, and Northrop Grumman, Palantir gains a strategic edge through its flexibility with big data and low-cost data processing solutions. By focusing on software instead of competing in hardware, Palantir has established a differentiated position in the industry.

Gotham provides access to a wide range of data—from drones to satellite imagery—and supports real-time decision-making. It also possesses the capacity to operate based on AI-driven scenario flows. Moreover, it maintains data privacy while integrating seamlessly with widely used data sources in the industry.

Financial Performance

Palantir's financial statements reflect steady growth in line with expectations, showing significant increases on a quarterly basis.

• In Q4 2023, Palantir recorded a $93 million profit, marking its fifth consecutive profitable quarter and achieving annual profitability for the first time since its founding.
• Over the past four years, the company expanded its customer base from 14 to nearly 300, achieving an 83% year-over-year growth in client count.
• In Q3 2024, Palantir’s revenue reached $726 million, a 30% increase compared to the same quarter of 2023.
• That same quarter saw the company achieve a record $144 million in net income, the highest in its history.
• During this period, Palantir was also included in the S&P 500, reinforcing its ongoing progress toward long-term economic targets.

As of September 30, 2024, one of the most notable highlights from the company’s disclosures is its $4.6 billion in cash, cash equivalents, and marketable securities.

In Q3 2024, U.S.-based revenue reached $499 million, representing a 44% increase compared to the same quarter in the previous year.

2- L3Harris-Tech

Founded in 2019 through the merger of L3 Technologies and Harris Corporation, L3Harris develops innovative technologies in the defense and aerospace sectors, offering integrated solutions across space, air, land, sea, and cyber domains. The company creates end-to-end technology solutions that connect these domains to meet the critical mission needs of its clients. L3Harris operates in more than 100 countries worldwide and is headquartered in Melbourne, Florida.

L3Harris has a wide range of products and services. It provides advanced surveillance solutions for unmanned aerial vehicles and systems (UAV/UAS), and also develops avionics products for both military and civil aviation. In partnership with Lockheed Martin and the U.S. Air Force, L3Harris developed Viper Shield, an integrated electronic warfare system for new F-16 aircraft, designed to protect against ever-changing threats.

Some of the areas where the company provides services for the defense industry include:

• Aircraft Guidance and Avionics: Initially, the company provided various modifications for U.S. Air Force C-130 aircraft, enabling better efficiency, targeting, and organized mission control.
  (https://www.l3harris.com/all-capabilities/m3-capabilities)
• Autonomous Systems: Solutions that allow surface, underwater, and aerial vehicles to operate autonomously, supporting high-risk missions. Maritime autonomous systems automate tasks like reconnaissance, energy sector operations, surveillance, and routine navigation. They also allow remote execution of pre-planned operations through easy integration.
  (https://www.l3harris.com/all-capabilities/autonomous-systems)
• Electronic Warfare: The company develops solutions to establish superiority in electromagnetic fields. It enables the easy integration of complex systems where various radars, surveillance, and defense technologies operate together.
  (https://www.l3harris.com/all-capabilities/electronic-warfare)
• Integrated and Visual Control: The company’s products make it easier to maintain strategic positioning over wide areas. By evaluating different data sources simultaneously, real-time monitoring of the targeted area is possible. These integrations can be physically included in various weapons and also work through vehicles and satellites on a shared infrastructure.
  (https://www.l3harris.com/all-capabilities/isr-and-sigint)
• Warning and Defense: The company combines its defense alert systems with space-based technologies. It provides real-time control for preventing ballistic missiles and various air attacks.
  (https://www.l3harris.com/all-capabilities/missile-warning-and-defense)
• Software and Cyber Solutions: In this field, the company provides services in cybersecurity and data protection, as well as in intelligence operations. Its services include encryption and global uninterrupted network security.
  (https://www.l3harris.com/all-capabilities/software-and-cyber-solutions)

Financial Performance of L3Harris Technologies in 2023 and 2024

Looking at the financial performance of L3Harris Technologies in 2023 and 2024, a significant upward trend is noticeable.

• In 2023, the company received $22.8 billion in orders, achieving a book-to-bill ratio of 1.18, and generated record revenue of $33 billion.
• During this period, the company’s revenue increased by 14%, reaching $19.4 billion. Additionally, earnings per share (EPS) for 2023 were $6.44, while adjusted EPS was $12.36.
• In 2024, the company raised its financial targets. In Q3, it received $7.2 billion in orders, achieving a book-to-bill ratio of 1.4.
• Revenue for the year grew by 8%, reaching $5.3 billion. Adjusted segment operating margin was 15.7%, and adjusted EPS was $3.34.
• In the most recent quarterly update, the company increased its full-year 2024 adjusted EPS guidance to $12.95–$13.15.

3 – Thales

Thales is a French company that provides integrated solutions in the defense and security sector across air, land, sea, and cyber domains, operating in 68 countries worldwide. With 81,000 employees, the company delivers products and services worth €2 billion to approximately 4,000 local SMEs and is recognized as a national innovation leader in artificial intelligence, big data, quantum technologies, cybersecurity, and other advanced fields.

Thales is a partner in the Galileo Satellite Navigation System and operates several national encryption laboratories across Europe. It is also the sole provider of a tactical IP encryptor with a "Cosmic Top Secret" security clearance for NATO member countries. The company is a strategic partner to the defense ministries of Germany, the UK, France, and Belgium in the infrastructure development of defense management centers. Thales currently employs over 600 engineers specialized in artificial intelligence, and around 100 PhD candidates are conducting AI-related research within the organization.

Thales operates across three main sectors: Defense & Security, Aerospace, and Cybersecurity & Digital Identity. The company supplies critical systems such as the AESA RBE2 radar and SPECTRA electronic warfare suite for Rafale fighter jets.

The company has been selected for the AI Deployable Agent (AIDA) project, funded by the European Commission through the European Defence Fund (EDF). A consortium of 28 European industry partners, startups, and research centers have come together to develop a sovereign AI-powered cybersecurity agent to protect aircraft systems from cyberattacks.

Planned to run for 3.5 years, the project aims to bolster fighter jets against increasingly complex cyber threats that dominate today’s high-intensity conflicts. Cybersecurity for onboard systems such as flight computers and electronic warfare systems has become a key agenda item, and Thales is now working on designing an AI system capable of autonomous or semi-autonomous intervention.

Additionally, at the 2020 International Cybersecurity Forum (FIC), Thales introduced its cybersecurity platform Cybels Analytics, designed to detect complex cyberattacks in real-time or proactively, supported by advanced analytics technologies. This approach aimed to reduce the average threat detection time from three months to just a few days, showcasing how AI can transfer knowledge into defense-ready applications.

Looking at the company’s 2023 financials, Thales posted a 4.9% increase in total sales, reaching €18.4 billion, and an organic growth rate of 7.9%. In the first half of 2024, the company achieved a 26% increase in order intake, totaling €10.77 billion. These figures reflect a strong trend of sustained growth and profitability for the Thales Group during 2023 and into 2024.

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