Defense technology companies make electronics, sensors, drones and other systems, often as suppliers to the large primes. Three of the seven we cover get 80% or more of their revenue from the U.S. government, and the median is 68%. Mercury Systems reports the highest figure, 97%, but it combines the U.S. government with other customers, including defense prime contractors, so it overstates the company's direct federal share.
Mercury Systems, AeroVironment, Leonardo DRS, Kratos Defense and Curtiss-Wright say their share includes work done as a subcontractor. That work does not appear in a company's own prime contract record. For four of them, Mercury Systems, AeroVironment, Kratos Defense and Teledyne, matched contract obligations are far below reported revenue, so the match is under review and their obligation ratios are withheld until it is checked.