Analysis & Reports

Leonardo secured over €64 million in funding from the European Defence Fund 2025, leading 15 selected projects aimed at enhancing European defense capabilities. The projects include ASIMOV, focused on in-orbit operations, and ANEMOS, aimed at improving information superiority. This success reflects Leonardo's strategic alignment with European defense priorities and its role in fostering collaboration across multiple countries and entities.

G3 Systems Limited delivered the first WTB flatrack to the Netherlands Ministry of Defence for State Verification Testing in May 2025. This marks a significant milestone in the contract for 418 flatracks, which will enhance the logistics capabilities of the NL MOD. The flatrack is designed for compatibility with existing military vehicles and aims to undergo rigorous testing to assess its operational performance.

France is developing a new nuclear aircraft carrier named France Libre, set to be commissioned in 2038, with an investment of €10 billion. The carrier will displace approximately 80,000 tons and aims to enhance France's military capabilities and sovereignty. This project involves 800 companies and is seen as a strategic response to European defense challenges.

The Ukrainian Air Force operates four Mirage 2000-5 jets, effectively conducting defensive air operations without losses to enemy fire. As of June 2026, these jets have begun transitioning to offensive roles, potentially utilizing precision glide bombs. Their operational success highlights their role in countering Russian threats in the airspace over Ukraine.

Airbus Defence and Space and SkyFall signed a Memorandum of Understanding in Berlin on 12 June 2026 to form a strategic partnership focused on advancing defense innovation in Europe and Ukraine. This collaboration aims to enhance Ukraine's air defense capabilities and support the European Sky Shield Initiative. SkyFall's technology has already proven effective in neutralizing over 10,000 Russian drones, highlighting the importance of this alliance in strengthening European defense.

The UK aircraft carrier HMS Prince of Wales has encountered a technical issue while docked in Stavanger, Norway, following NATO exercises. Despite the Ministry of Defence's assurances that the carrier will sail soon, there are ongoing concerns about its reliability due to a history of technical problems. This situation highlights broader issues within the UK's military industrial base and its capacity to maintain naval operations.

Diehl Defence and Sistemas de Misiles de España announced the development of the HYDEF2 hypersonic defense interceptor system in Berlin on June 11, 2026. This initiative, supported by a 99,988,962.68 Euro contribution from the European Defense Fund, involves twelve companies from five European countries. The project aims to enhance Europe's air defense capabilities against hypersonic threats by creating a connected air and missile defense system.

Dr. Klaus WeberFri Jun 12 2026Loading...

The Eurosatory defense show in Paris is showcasing over 2,600 exhibitors, emphasizing the urgency for European countries to procure military equipment before a potential conflict with Russia. Military experts warn that Europe risks direct confrontation with Russia within the next two years, necessitating immediate acquisition of off-the-shelf weapons. The event features new technologies, including drones and long-range missiles, with significant participation from U.S. and Ukrainian companies.

Leonardo is in advanced discussions with the Italian Ministry of Defense to expand the AW249 combat helicopter fleet, aiming to deliver 17 units by 2028. Currently, 19 helicopters have been procured, with negotiations for an additional 14. The AW249 will replace the aging AW129 fleet and is designed to integrate with drones for enhanced operational capabilities. The helicopter was showcased at the Berlin Air Show alongside potential armaments for integration.

Leonardo is in advanced talks with the Italian Ministry of Defense to expand the AW-249 combat helicopter fleet, aiming to deliver 17 units by 2028. Currently, 19 helicopters have been procured, with negotiations for 14 more ongoing. The AW-249 will replace the aging AW-129 fleet and is designed to operate as a command node within a network that integrates multiple drones. Leonardo is also targeting European and Middle Eastern markets for future sales.

Diehl Defence and Sistemas de Misiles de España (SMS) signed a Memorandum of Understanding to enhance cooperation in developing advanced defense capabilities, particularly hypersonic systems, aimed at countering next-generation threats. This partnership, which strengthens European security, will lead to the formation of a new consortium for the HYDEF2 program, focusing on Integrated Air and Missile Defence systems. The collaboration reflects a commitment to deeper bilateral cooperation between Germany and Spain.

General Atomics Aeronautical Systems, Inc. (GA-ASI) and INTEC Group signed a Memorandum of Understanding (MoU) at the ILA Berlin Air Show on 11 June 2026. The MoU aims to support the architecture and integration of mission systems and logistics for GA-ASI's Gambit Series of Collaborative Combat Aircraft (CCA), enhancing capabilities for European nations.

General Atomics Aeronautical Systems, Inc. (GA-ASI) and INTEC Group signed a Memorandum of Understanding (MoU) at the ILA Berlin Air Show on 11 June 2026. The MoU aims to support the architecture and integration of mission systems for GA-ASI's Gambit Series of Collaborative Combat Aircraft (CCA), enhancing capabilities for the German military. This collaboration is expected to meet the growing demand for CCA in Europe.

On June 2, 2026, the French Defence Procurement Agency awarded MBDA a contract for the development of the ASN4G hypersonic missile, expected to enter service around 2035. This missile will be operated by the French strategic air forces and will replace the ASMPA missile. The ASN4G's hypersonic capabilities are intended to enhance airborne deterrence against evolving threats.

Terma and Diehl Defence signed a cooperation agreement in Berlin during the ILA Berlin Airshow 2026 to develop future defense products and technologies. This collaboration focuses on ground-based air defense systems and guided missiles, aiming to enhance the European defense industrial base. Both companies have a decade-long partnership in defense projects.

Rafael Advanced Defense Systems and Reflex Aerospace announced a strategic partnership in June 2026 to co-develop a new Very High Resolution and Very High Revisit satellite constellation (VHR²C) in Berlin. This satellite system is designed to provide rapid production and high-resolution imagery to meet modern intelligence demands. The first satellite is expected to launch in Q4 2027, enhancing capabilities for persistent surveillance and actionable intelligence.

Elbit Systems announced a partnership with Diehl Defence on June 11, 2023, to provide the SkyStriker loitering munition to the German Armed Forces. This collaboration aims to enhance Germany's defense capabilities through local manufacturing and assembly, addressing the growing need for advanced loitering munitions. The SkyStriker, capable of a range over 200km, is part of Israel's strategic push into European defense markets.

Niewiadów Polska Grupa Militarna (NPGM) is developing a 40 mm ammunition production facility in Niewiadów, Poland, with construction expected to be completed by April 2027 and production starting in mid-2027. The project includes a 30-year exclusive production license from ST Engineering and aims for an annual output of 480,000 rounds. NPGM plans to localize 85% of component manufacturing in Poland to enhance supply resilience for NATO.

The joint fighter jet project between France and Germany has been terminated due to conflicting requirements, with France needing carrier-capable aircraft and Germany not having aircraft carriers. This failure raises questions about future military cooperation and the relevance of large-scale defense projects in light of rapid technological advancements. New alliances for aircraft development are being explored, including a coalition led by Airbus for a sixth-generation fighter jet.

Airbus and a coalition of German defense companies formed 'Team Gen 6' to develop a 6th-generation fighter aircraft following the collapse of the Future Combat Air System project. The announcement was made at the Berlin Air Show, with plans to salvage some technologies from the previous project. Spanish companies are also expected to join the initiative as Germany explores options for future fighter procurement.