Virginia’s publicly traded companies defy economic slowdown

Virginia’s economy grew at its slowest pace in 2025 since the pandemic, but you wouldn’t know it looking at the state’s largest publicly traded companies.

“Virginia had a difficult 2025,” says Robert McNab, professor and chair of the economics department and director of the Dragas Center for Economic Analysis and Policy at Old Dominion University’s Strome College of Business. Anemic job growth, worsening consumer sentiment and inflation that’s still high by historical standards characterized an economy that grew just 1.5% last year.

By and large, however, Virginia’s corporate giants reported revenue growth far outpacing that rate. Geopolitical tensions created robust demand for the likes of RTX, General Dynamics and Northrop Grumman, while aggressive acquisition strategies boosted Capital One Financial and Ferguson Enterprises, a Fortune 500 newcomer.

But McNab cautions that an economy increasingly dependent on high-income households could create a challenging landscape ahead. In that light, companies like Dollar Tree or Performance Food Group may offer a more representative barometer.

Here’s how Virginia’s 10 largest publicly traded companies fared in the last year:

Federal Home Loan Mortgage Corp. (“Freddie Mac”), McLean

2025 revenue: $131.68 billion

Employees: 8,100+

For investors, 2025 was exceptional as Freddie Mac’s stock surged 210% amid re-privatization speculation. While the government-sponsored enterprise slipped two spots from 2024 to No. 38 on the Fortune 500, it defied a sluggish housing market and C-suite turbulence.

The company boosted its provision for credit losses to brace for potential market volatility, which largely explains an 11% year-over-year decline in third-quarter net income. Meanwhile, Freddie Mac’s total mortgage portfolio increased 2.5% to $3.7 trillion, slightly trailing its 2.8% rate in 2024.

Freddie Mac’s multifamily business segment accounts for less than 15% of net revenue but was a 2025 standout. Through September, that mortgage portfolio grew 6%, triple the rate of its single-family portfolio. For the entire year, multifamily production volume jumped 17% to exceed $77 billion. Notably, 66% of Freddie Mac’s 2025 production volume qualified as “mission-driven affordable housing,” exceeding the 50% mandate set by the Federal Housing Finance Agency.

“Our focus in 2025 was on bringing liquidity to the multifamily market to increase the supply of affordable rental housing,” Kevin Palmer, head of multifamily for Freddie Mac, said in a January news release.

The banner year occurred despite a revolving door at the top. Following Michael J. DeVito’s 2024 retirement, Diana Reid served as CEO for a few months before she was fired in March 2025 by the director of the FHFA. Freddie Mac President Michael Hutchins stepped up as interim CEO until Kenny M. Smith was appointed to lead the company in December.

Boeing, Arlington County

2025 revenue: $89.5 billion

Employees: 170,000+

Following years of crises, Boeing ended 2025 with a major restructuring that saw it cut approximately 17,000 jobs, and it dropped 11 spots on the Fortune 500 to No. 63, its lowest ranking in at least a decade. Despite this, Boeing shares rallied nearly 23% as investors bet on a turnaround under President and CEO Kelly Ortberg.

The turnaround gained traction in the fourth quarter, as Boeing’s annual revenue soared 34% to $89.5 billion in 2025 and commercial airplane deliveries skyrocketed 72% to 600 planes, the highest since 2018. “We made significant progress on our recovery in 2025 and have set the foundation to keep our momentum going in the year ahead,” Ortberg said in the company’s January statement of fourth quarter results.

In December, Boeing finalized its $4.7 billion re-acquisition of Spirit AeroSystems, bringing the fuselage supplier for the 737 program back in-house. Spirit also makes major structures for the 767, 777 and 787 Dreamliner.

However, the company hasn’t fully cleared the turbulence of recent years. Boeing generated free cash flow on a quarterly basis for the first time since 2023, a metric tracked by Wall Street, but it still spent $1.9 billion in 2025 mostly due to ongoing certification delays for the 737 Max and 777X aircrafts. With production still trailing Airbus, Boeing must accelerate its delivery pace and restore its reputation for safety.

RTX, Arlington County

2025 revenue: $88.6 billion

Employees: 185,000+

RTX enters 2026 with “great momentum,” according to Chairman and CEO Chris Calio. Net sales rose 10% to $88.6 billion in 2025, supported by a record backlog of $268 billion that signals sustained demand for the defense and aerospace contractor’s products and services. The company’s stock surged 61% during the year.

Fueled by a 17% year-over-year sales increase, Pratt & Whitney overtook Collins Aerospace as RTX’s largest business segment in 2025. The aerospace manufacturing business unit reported a 30% jump in military sales — part of a larger trend that included a 20% increase in munitions output.

Global defense spending continues to benefit RTX. Billion-dollar-plus contract wins included a $50 billion umbrella contract with the Defense Logistics Agency in August, a $5 billion contract with the U.S. Army in October, and a $1.25 billion contract in November to supply Israel with Tamir missiles for its Iron Dome.

However, RTX is among defense companies eliciting criticism from President Donald Trump, who threatened to cut its defense contracts on account of its responsiveness. Though Calio said he understands such frustrations, he promised that RTX resources are “fully aligned” with the department’s mandate to ramp up production.

Performance Food Group, Goochland County

2025 revenue: $63.3 billion

Employees: 43,000+

Performance Food Group has steadily climbed the ranks of the Fortune 500, rising from No. 168 in 2020 to No. 80 in 2025. This ascent is fueled by the food distributor’s aggressive expansion strategy, which even saw PFG and US Foods Holding flirting with a potential mega-merger in 2025 to rival Sysco, before the duo called off those talks in November.

For its 2025 fiscal year that ended in June, PFG’s net sales grew 8.6% to $63.3 billion, with further gains of as much as 8.2% forecasted for the current fiscal year. The company’s Foodservice segment saw an 18.8% jump in net sales during its first quarter, driven largely by its $2.1 billion acquisition of Cheney Brothers in 2024, which significantly expanded PFG’s footprint in the Southeast. What’s more, the May 2025 opening of a 60,000-square-foot meat processing facility in Wisconsin tripled the company’s regional production capacity.

But the biggest move of all happened in the C-suite. After nearly two decades at the helm, longtime CEO George Holm transitioned to executive chair in January. Scott McPherson, formerly PFG’s president and chief operating officer, succeeded Holm and retained the president title. “I’m honored to step into the role of CEO at this exciting time for PFG,” McPherson said in the company’s December 2025 announcement. “I believe our company has tremendous growth potential.”

Capital One Financial, McLean

2025 revenue: $53.4 billion

Employees: 73,000+

Capital One’s credit card business has been on a tear thanks to an aggressive expansion strategy. In 2025, the company’s credit card net revenue jumped 40% to $39.6 billion, accounting for about three-quarters of the company’s $53.4 billion annual revenue.

Driving much of Capital One’s growth was its $35.3 billion acquisition of Discover Financial Services, completed in May 2025. That deal transformed Capital One into the nation’s largest credit card lender and gave it a global payments network to rival Visa and Mastercard.

That acquisition, however, brought higher-than-estimated integration costs and largely explains why Capital One’s net income fell 48% year-over-year to $2.5 billion in 2025. But that didn’t quell its acquisition aspirations: In January, Capital One announced a $5.15 billion deal to acquire Brex, a fintech company with AI tools for corporate expense management.

This year, the company has agreed to a $425 million class action lawsuit settlement regarding allegations it misled account holders by paying lower interest rates on similarly named accounts. But the company’s trajectory — which saw it climb nine spots to No. 82 on the Fortune 500 — doesn’t appear to be slowing down.

“I’m struck by the number and quality of the opportunities we have before us,” Richard D. Fairbank, Capital One’s founder, chairman and CEO, said in the company’s statement of its fourth quarter results.

General Dynamics, Reston

2025 revenue: $52.6 billion

Employees: 110,000+

To appreciate how many defense contracts are up for grabs these days, consider this: General Dynamics capped off 2025 with $118 billion in companywide backlog, a 30% increase from 2024. Revenue rose 10.1% to $52.6 billion, driven by robust demand for Gulfstream business jets and an accelerated pace of nuclear submarine production — and shows no signs of letting up.

The defense contractor is “preparing aggressively for future growth,” investing nearly $1.2 billion in capital expenditures in 2025, Phebe N. Novakovic, chairman and CEO, said in the company’s statement of its 2025 results. Such investments are critical as the company scales to meet an estimated contract value that totals $179 billion, up 24% from a year earlier.

Revenue climbed 16.6% during the year for the company’s Marine Systems business unit, as General Dynamics scored more than $29 billion in contract awards, including the full construction of two Virginia-class submarines. Its Aerospace unit saw a similar 16.5% increase in 2025 revenue amid a 21% increase in new aircrafts. But the company is forecasting more muted, single-digit revenue growth in 2026.

Also, Novakovic ranked No. 36 on Fortune’s 100 Most Powerful Women in Business in 2025, and in December, Danny Deep, General Dynamics’ executive vice president of global operations, was promoted to president.

Northrop Grumman, Falls Church

2025 revenue: $42 billion

Employees: Nearly 100,000

The past year also brought a steady drumbeat of billion-dollar contract wins for aerospace contractor Northrop Grumman, totaling $46.3 billion and fueling a 5% increase in its backlog to a record $95.7 billion.

Among the highlights were contracts related to Northrop Grumman’s B-21 Raider, a sixth-generation stealth bomber. Sales in its aeronautics division, which produces the B-21, rose 5% in 2025. Meanwhile, sales in the company’s mission systems segment jumped 10%, fueled by a ramp-up in airborne radar programs and strong demand for F-35 Lightning II aircraft components. The company is forecasting momentum in this business unit to continue, with projected sales growth of as much as 14% in 2026.
Following Trump’s criticism of defense sector stock buybacks, company management signaled a pivot in January and isn’t planning additional share purchases for now, after they totaled more than $5.6 billion between 2023 and 2025.

Northrop Grumman slipped only one spot, to No. 110, on the Fortune 500, indicative of a mostly steady year for the company. John Greene joined as chief financial officer in January, after Ken Crews announced he would leave after 22 years to pursue other interests. CEO Kathy Warden is readying the company if the U.S. defense budget expands.

“We share the sense of responsibility and urgency our customers have to provide our nation and allies the best products in the world,” Warden said during the company’s fourth quarter earnings call.

Dollar Tree, Chesapeake

Projected 2025 revenue: $19.35 billion to $19.45 billion

Employees: Nearly 150,000

Breaking up is hard to do, but sometimes it’s the right thing to do. After completing its sale of Family Dollar in July, Dollar Tree emerged leaner and more focused on its namesake brand. The $1 billion divestiture deal removed a long-time drag on performance, and shares of Dollar Tree surged more than 64% in 2025 after two years of declines.

CEO Michael C. Creedon Jr. said in a statement after the Family Dollar sale that Dollar Tree will double down on its core business and is “poised to accelerate our growth, innovate faster, and unlock our full potential.”

In May 2025, Dollar Tree opened its 9,000th store. Over the past few years, the company has steadily converted more than half of its stores to its multi-price format, an evolution from its $1 legacy. And higher prices haven’t deterred shoppers; the average ticket rose 3.6% in the three quarters ended Nov. 1, driving much of the 5.4% growth in same-store sales.

Creedon’s first full year as CEO also saw another major C-suite change, with Stewart Glendinning joining as CFO in March 2025 following the departure of Jeff Davis.

Ferguson Enterprises, Newport News

Projected 2025 revenue: $31.29 billion

Employees: 35,000

Ferguson Enterprises debuted on the Fortune 500 at No. 146 in 2025, a milestone that follows its 2024 corporate reorganization as a U.S.-based company. The plumbing and heating products distributor has grown its U.S. market share through an aggressive acquisition strategy, completing nine deals in the 12 months that ended July 31 that added approximately $300 million in annualized revenue.

However, the company’s residential segment, which accounts for approximately half of its U.S. revenue, remains a headwind. Revenue fell 1% during the fiscal quarter that ended Oct. 31.

“New residential housing starts and permit activity have been weak, and repair, maintenance and improvement work has also remained soft,” the company said in its news release with the quarter’s results. Despite this “challenging market,” CEO Kevin Murphy said, Ferguson remains confident in its medium-term trajectory.

CarMax, Goochland County

2025 revenue: $26.35 billion

Employees: 30,000+

CarMax navigated a bumpy road in 2025 as vehicle sales stalled, new competitors arrived to woo buyers, the share price was halved and the company experienced a major corporate overhaul. What’s more, the nation’s largest used-car retailer fell 10 spots on the Fortune 500 to No. 151, its lowest ranking since 2022.

Last year culminated with a leadership change as President and CEO Bill Nash left the driver’s seat. In February, the retailer announced hospitality industry veteran Keith Barr as its next president and CEO.

In the wake of job cuts totaling nearly 600 from two rounds of layoffs, one in October and another this January, the company hopes to chart a course back to better sales performance trends by focusing on improving price competitiveness and increasing its marketing spend.

But it has a steep road ahead. In addition to weaker demand for used vehicles in the U.S., prices are also falling, and CarMax reported year-over-year declines for its quarter that ended Nov. 30 across various metrics — from earnings to comparable store sales to profit per unit.

Despite these challenges, CarMax continues to expand its physical and community footprint. In November, it opened its first store in Arkansas — its 42nd state. Meanwhile, the roughly $117 million CarMax Park under construction in Richmond is on track to host opening night for the Flying Squirrels come April.