Sandia National Laboratories reported $5.2 billion in economic impact for 2025, its 17th consecutive record year and a $40.5 million rise from 2024, in the lab's annual economic impact report.

The total, more than double the lab's 2013 figure, derives from Sandia's own accounting. The brochure does not break out federal appropriations, indirect cost recovery, or per-program R&D allocation, so R&D managers should treat it as a regional indicator rather than a full financial disclosure.

What did the spending look like?

Labor accounted for the largest single line. Sandia spent $2.95 billion on wages for roughly 16,000 employees — $46 million above 2024 — at an average $145,000 per person. The lab says the increase reflects pay raises for highly skilled scientists, engineers, and security-mission staff.

Subcontracting took the second slot: $1.7 billion in payments to outside firms nationwide. Small-business vendors received $1.03 billion of that total, the third consecutive year above the billion-dollar threshold. New Mexico-headquartered firms alone took $463 million. Sandia added 335 first-time small-business partners in 2025 and increased awards to veteran-owned, service-disabled veteran-owned, and HUBZone firms.

NTESS, Sandia's operating contractor, also directed $1.6 million to local education, family stability, and community leadership programs in 2025. Employees contributed more than $4 million to nonprofits through the United Way of North Central New Mexico, volunteered at 50-plus events, and donated 1,322 pints of blood.

How concentrated is the supply-chain bet?

Supply chain director Krista Smith tied subcontracting directly to mission delivery.

"Sandia National Laboratories has a rich tradition of collaborating with a wide range of skilled small business suppliers who play a vital role in supporting our national security initiatives," Smith said.

Small-business program manager Zach Mikelson pointed to first-time suppliers as innovation feeders.

"I want to highlight the importance of working with new small businesses," Mikelson said. "They bring fresh, innovative ideas to the table, which can help develop better solutions for the nation."

For R&D procurement leads, the 335-partner intake signals continued appetite to broaden beyond incumbents in cybersecurity, integrated military systems, and nuclear stockpile stewardship work — three of the lab's stated mission areas.

How far did the tax base and STEM pipeline scale?

Sandia's tax contributions rose alongside its operating footprint:

• $144 million in gross receipts taxes (+$11.3 million)
• $148 million in corporate taxes (+$12.3 million)

STEM outreach expanded to 14,000 students in 2025, up roughly 4,000 year-over-year, and engaged 700 teachers and community members — a 98.86% increase. Sandia and the National Museum of Nuclear Science and History launched Mission Fission, an eighth-grade nuclear-science program with Albuquerque Public Schools that targets 4,500 students annually.

Labs Director Laura McGill framed the pipeline as a workforce hedge tied to future hiring pressure.

"These are students who may one day become engineers, scientists, technicians or small business owners in New Mexico," McGill said. "Behind every statistic is a student discovering a love for science."

What should R&D managers track from here?

The report's omitted data — federal pass-through totals, capital expenditure, and program-level headcount — will determine whether FY2026 hiring and contracting trends continue the 17-year upward line or bend under nuclear-modernization demand spikes.

With roughly 16,000 personnel and a $145,000 average salary, Sandia's payroll sets a regional benchmark that defense-lab R&D directors can use to model FY2026 wage and subcontractor spend.