Sandia National Laboratories generated a record $5.2 billion in economic impact in 2025, marking the 17th consecutive year Sandia has set a new high, according to its annual economic impact report released this week.
The total represents a $40.5 million increase from 2024 and more than doubles Sandia's economic impact from 12 years ago, reinforcing the laboratories' role as one of New Mexico's largest employers and economic engines.
"Sandia has been a strong part of New Mexico's economy for more than 75 years," said Labs Director Laura McGill. "We are extremely proud of our contributions, which extend beyond the economy and include giving back to our community through financial donations and volunteer time. We are neighbors that are invested in making this an even greater place to live."
Investing in the workforce
Sandia's largest investment in 2025 was its workforce of approximately 16,000 people. Sandia spent nearly $2.95 billion on labor costs last year, an increase of $46 million from 2024. The increase reflects pay raises for the highly skilled scientists, engineers and professionals who fulfill Sandia's national security mission.
With an average salary of $145,000, Sandia remains committed to keeping high-paying jobs in New Mexico.
"Our employees live here. They raise their families here. They volunteer in our schools, support local organizations and spend their paychecks at local businesses," McGill said. "When we talk about economic impact, that's what we're really talking about."
Working with small businesses
Sandia's second largest expenditure in 2025 was $1.7 billion in subcontract-related payments, which were spent with businesses around the country that provide critical services to the Labs. Many of those are small businesses, a cornerstone to the nation's economy.
"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," said Krista Smith, Sandia's supply chain director.
Sandia spent $1.03 billion with small businesses in 2025, the third consecutive year it exceeded the billion-dollar mark. Of that amount, $463 million went to small businesses in New Mexico. Sandia also worked with 335 new small businesses during the year.
"I want to highlight the importance of working with new small businesses," said Zach Mikelson, Sandia's small business program manager. "They bring fresh, innovative ideas to the table, which can help develop better solutions for the nation, all while contributing to the local economy by creating jobs and supporting economic growth."
In 2025 Sandia increased spending with veteran owned, service-disabled veteran-owned and HUBZone businesses. HUBZone businesses are located in historically underutilized business zones often facing higher unemployment and poverty rates.
Contributions to the public services
Sandia also contributed significantly to public services in New Mexico through tax payments.
In 2025, Sandia paid approximately $144 million in gross receipts taxes to the state of New Mexico, an increase of $11.3 million from the previous year. Overall, Sandia paid $148 million in corporate taxes, up $12.3 million, helping support programs and services that benefit New Mexicans statewide.
Investing in the future
One of the most important ways Sandia invests in the future is through education. In 2025, Sandia reached 14,000 students through STEM education programs, about 4,000 more than the year before. Sandia also engaged 700 teachers and community members; a 98.86% increase compared to 2024.
The community involvement team and teachers from Albuquerque Public Schools partnered with the National Museum of Nuclear Science to launch Mission Fission, a program that introduces nuclear science and energy concepts to eighth-grade students in Albuquerque Public Schools. The museum's program aims to reach 4,500 students each year.
"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."
Giving back to the community
Sandia also continued its strong tradition of giving back to the community. National Technology and Engineering Solutions of Sandia LLC donated $1.6 million to local education, family stability and community leadership initiatives.
Employees also gave of their own time and money, donating more than $4 million to nonprofits through the United Way of North Central New Mexico, $15,000 for Shoes for Kids, $8,000 for school supply drives and $14,000 for Roadrunner Food Bank. Employees also donated 1,322 pints of blood in 2025 and volunteered at more than 50 volunteer events.
"As the nation's premier engineering laboratory, Sandia's mission is to address complex national security challenges, McGill said. "But we don't do that in isolation. We pull from our community - one that includes local businesses, schools, nonprofits and tens of thousands of families across New Mexico and beyond."
