Rheinmetall has surpassed Volkswagen in market value, reaching €56.6 billion ($61.5 billion) as investor demand for defense stocks rises. European defense stocks have surged amid concerns over U.S. support for Ukraine and Europe’s increasing military spending commitments. Rheinmetall’s stock has more than doubled in 2024 and grown over twelve-fold since Russia’s 2022 invasion of Ukraine. Jefferies analysts rated Rheinmetall as a “buy” and its top pick, while Renk was also rated “buy” and Hensoldt “underperform”. Rheinmetall forecasts a 25% to 30% sales increase in 2025, following €10 billion in revenue for 2024. Original news
Author: Veiko Lukmann
Sweden to supply 18 additional Archer self-propelled howitzers to Ukraine
Sweden has approved the procurement of 18 Archer artillery systems for Ukraine, as part of its ongoing military aid efforts. The SEK 3 billion package, managed by the Swedish Defence Materiel Administration (FMV), also includes five Arthur counter-battery radar systems to enhance Ukraine’s battlefield effectiveness. Sweden is collaborating with Denmark to fund additional 155mm artillery ammunition or Bohdana artillery systems, strengthening Ukraine’s defense industry. Additionally, Sweden plans to join the Ukraine Defense Contact Group’s artillery coalition to improve artillery interoperability with NATO. The Arthur radar systems will be delivered in 2025, while Archer howitzers will arrive in 2026. Original news
ESA Launches HydRON Optical Data Relay Network to Enhance Satellite Connectivity
The European Space Agency (ESA) has initiated the HydRON program, a multi-orbit optical data relay network designed to improve satellite connectivity between low Earth orbit (LEO), geostationary orbit (GEO), and terrestrial networks. Utilizing lasers capable of transmitting up to 100 gigabits per second, the project is expected to revolutionize data transmission for sectors like Earth observation and defense. Kepler Communications secured a €36 million contract to develop the first element of the network, while ESA has also contracted Thales Alenia Space to build the second component. This collaboration marks a major step forward in advancing optical satellite communications technology. Original […]
Poland Considers French Nuclear Security Initiative Amid NATO Concerns
Polish Prime Minister Donald Tusk confirmed discussions with France on a European nuclear umbrella, signaling Poland’s interest in enhancing its strategic security. Tusk emphasized that modern weapons, including nuclear capabilities, are crucial for Poland’s defense, raising speculation about shifting security alliances. Analysts believe this move sends a message to the U.S., as concerns over NATO’s reliability grow under the Trump administration’s policies toward Russia. Poland is already acquiring 32 F-35 fighter jets, certified to carry U.S. B61-12 tactical nuclear weapons, but these jets cannot deploy French nuclear arms. If Poland pursues a nuclear partnership with France, it may need alternative […]
EU to Launch Pan-European Defense Projects to Address Security Gaps
The European Commission plans to invite EU nations to identify their most critical defense needs as part of large-scale pan-European flagship projects, according to a draft white paper. The document, set for release next week, responds to Russia’s invasion of Ukraine, emphasizing the need for Europe to strengthen its defense capabilities independently of U.S. support. It highlights capability gaps in air defense and cyber warfare, urging collaborative efforts to close these vulnerabilities. The draft also suggests deepening the European defense market to improve coordination and efficiency. This initiative marks a strategic shift toward self-reliance in European defense policy. Original news
European Asset Managers Reassess Defense Investments Amid Rising Security Concerns
European asset managers are reconsidering investment policies in the defense sector due to client pressure and escalating geopolitical tensions. Legal & General, the UK’s largest investor, stated that defense’s importance has “risen dramatically,” prompting a review of its exposure to defense stocks. Other major firms, including UBS and Allianz Global Investors, are also reassessing their positions, signaling a broader shift toward military investments. Some funds have already begun increasing their allocations to defense, reflecting growing acceptance of the sector amid rising security threats in Europe. This trend highlights a changing investment landscape, as defense spending becomes a strategic priority for […]
European Satellite Firms Call for Collaboration to Compete with SpaceX
At the Satellite 2025 conference in Washington, European satellite manufacturers urged greater cooperation to compete with vertically integrated players like SpaceX. Benoit Deper, CEO of Aerospacelab, emphasized the need for joint ventures and mergers to share risk, warning against repeating past failures in Europe’s launch ecosystem. Thales Alenia Space CEO Hervé Derrey highlighted that co-engineering and deeper collaboration are essential for fostering innovation, as traditional vendor-supplier relationships are no longer sufficient. In response to supply-chain challenges, companies are strengthening supplier partnerships and expanding production capacities. The push for European cooperation reflects the growing urgency to enhance competitiveness in the global […]
Palantir Expands AI-Powered Warp Speed Program to Six New Defense Customers
Palantir has announced six new customers for its Warp Speed AI operating system, designed to optimize manufacturing, fleet management, and maintenance. The new partners include Epirus, Red Cat, Saildrone, Saronic, Ursa Major, and Sierra Nevada Corporation (SNC), expanding Warp Speed’s defense and aerospace applications. Originally launched in December 2024, Warp Speed enhances production, scheduling, and engineering management and is already used by L3Harris, Shield AI, Anduril Industries, and Panasonic Energy of North America. Palantir’s Head of Industrials Emily Nguyen emphasized that Warp Speed enables faster and more efficient defense production, crucial for keeping pace with evolving threats. Palantir plans to […]
Italy Expands Armored Forces With €1 Billion Infantry and Tank Programs
The Italian Army is set to boost its armored capabilities through the Armoured Infantry Combat Systems (AICS) and Main Battle Tank (MBT) programs, projected to generate €1 billion ($1.1 billion) in revenue. Leonardo’s updated Industrial Strategy, published on March 11, confirms plans to deliver 1,050 AICS units and 272 MBTs by 2040. The AICS will be based on Rheinmetall’s KF41 infantry fighting vehicle, while the new MBT will derive from the KF51 Panther tank. To support these developments, Leonardo and Rheinmetall established the Leonardo Rheinmetall Military Vehicles (LRMV) joint venture, with operations starting in Q1 2025. This initiative reflects Italy’s […]
U.S. to Resume GLSDB Shipments to Ukraine After Upgrades
The U.S. is set to resume shipments of Ground-Launched Small Diameter Bombs (GLSDBs) to Ukraine after upgrading them to counter Russian jamming. These long-range bombs will arrive as Ukraine’s stockpile of ATACMS missiles has reportedly been depleted. In recent weeks, 19 GLSDBs were test-fired to evaluate the effectiveness of the upgrades. Their deployment could happen within days, as a stockpile is already positioned in Europe. The move aims to enhance Ukraine’s long-range strike capabilities amid ongoing battles against Russian forces. Original news
Rheinmetall Considers Volkswagen’s Osnabrueck Factory for Military Production
Rheinmetall CEO Armin Papperger suggested that Volkswagen’s Osnabrueck plant could be converted for military production, as Volkswagen explores repurposing or selling the site. Papperger expressed interest in acquiring car manufacturing sites, but emphasized that large defense orders, such as for Lynx infantry fighting vehicles, would be needed before making such an investment. Volkswagen announced in December 2024 that it was reviewing alternative uses for the plant, raising hopes that a sale could help preserve jobs. While Rheinmetall and Volkswagen already collaborate on military truck production, Papperger clarified that there is no formal plan for Osnabrueck yet. However, he stated that […]
Isar Aerospace Secures Norwegian Space Agency Contract for 2028 Launch
Isar Aerospace has won a launch contract from the Norwegian Space Agency to send two Arctic Ocean Surveillance (AOS) satellites into orbit in 2028. The Spectrum rocket will carry the AOS-Demo satellite (built by Eidel) and AOS-Precursor satellite (built by Kongsberg Defence & Aerospace) from Andøya Spaceport to a sun-synchronous orbit. Christian Hauglie-Hanssen, director general of the Norwegian Space Agency, highlighted that this marks the first time Norwegian-built satellites will be launched from a Norwegian site under a government contract. The announcement comes as Isar prepares for its first Spectrum launch, awaiting final approval from the Norwegian Civil Aviation Authority. […]
Leonardo Estimates 350 Orders for Global Combat Air Programme by 2035
Leonardo projects 350 aircraft orders for the Global Combat Air Programme (GCAP), a joint initiative between Italy, Japan, and the UK, by 2035. The program, which will introduce the Tempest fighter, has secured €40 billion ($43.7 billion) in development funding from its partner nations. Japan currently operates 39 F-35A/Bs, while Italy and the UK field 31 and 35 F-35 variants, respectively. A joint venture between BAE Systems, Leonardo, and Japan Aircraft Industrial Enhancement Company will oversee aircraft production across the UK, Italy, and Japan. The Japan Air Self-Defense Force (JASDF) remains focused on developing an F-2 replacement, based on the […]
Leonardo Targets €30 Billion Revenue by 2029 Amid Defense Spending Boom
Leonardo aims to reach €30 billion ($32.5 billion) in revenue by 2029, driven by rising European defense budgets and industry expansion. The forecast was announced during the company’s FY2024 results and 2025–29 industrial update on March 11. In 2024, Leonardo reported €17.8 billion ($19.8 billion) in revenue, marking a significant increase toward its long-term target. The company plans to focus on strengthening its core business sectors, particularly in defense, security, and advanced aircraft and helicopter platforms. Leonardo’s growth strategy aligns with increasing European investments in military capabilities and defense modernization. Original news
Clavister Wins $6.5M Cybersecurity Contract for CV90 Infantry Fighting Vehicles
Clavister has secured a SEK 68 million ($6.5 million) contract with BAE Systems Hägglunds to integrate CyberArmour cybersecurity solutions into CV90 infantry fighting vehicles for a Nordic country. The three-year agreement, with initial deliveries set for 2027, includes an option to expand the contract to SEK 96 million ($9.2 million). Clavister will provide its CyberArmour RSG-400 and RSW-400 models, offering AI-powered firewall protection for enhanced battlefield cybersecurity. BAE Systems Hägglunds, which designs the CV90, is upgrading the vehicle’s digital architecture, making cybersecurity a key priority. Clavister CEO John Vestberg highlighted the critical role of cyber defense in modern military operations, […]