- The European Union will implement the ReArm Europe Plan and boost its defense spending by €800 billion. Fortune compiled some of the European defense contractors that might pick up European needs.
The European Union announced plans to increase its defense spending by €800 billion ($867 billion), European Commission President Ursula von der Leyen said this week, unveiling the ReArm Europe plan.
The plan includes €150 billion in loans to help member states buy air defenses, artillery, missiles, “ammunition drones,” and anti-drone systems as well as address other needs like cybersecurity and mobility.
“Europe is ready to massively boost its defense spending. Both, to respond to the short-term urgency to act and to support Ukraine but also to address the long-term need to take on much more responsibility for our own European security,” von der Leyen said in a statement.
The E.U. has felt added pressure from the Trump administration’s approach to the Russia-Ukraine war. Last week, a conversation at the White House between President Donald Trump and Ukrainian President Volodymyr Zelensky turned sour, and the White House has reportedly halted military aid.
As Europe plans to build up its military in preparation for a potential world without U.S. assistance, Fortune has compiled some of the largest European defense players that may take on a larger role to rearm Europe.
BAE Systems
Led by CEO Charles Woodburn, the Camberley, United Kingdom-based company’s revenue reached £26.3 billion in 2024. Its military sectors include air, land, cyber security and intelligence, electronics, and sea systems.
Within its air sector, BAE Systems is a partner in the Eurofighter Typhoon fighter jet consortium and the F-35 stealth fighter, whose prime contractor is Lockheed Martin.
BAE’s land division makes tracked, untracked, and amphibious combat vehicles. Additionally, the company produces ammunition, precision munitions, artillery systems, missile launchers, precision imaging, and targeting solutions.
In electronics, its repertoire includes flight and engine controls, electronic warfare, night-vision systems, surveillance and reconnaissance sensors, mobile networked-communication equipment, systems integration, and environmentally-friendly energy management systems.
Thales
Helmed by CEO Patrice Caine in Meudon, France, Thales specializes in aerospace, defense, digital identity and ground transportation. In 2024, the company generated €20.58 billion in revenue.
While the company is famous for its space systems, Thales does a wide variety of military work, such as designing smart sensors and connecting soldiers on the digital battlefield.
In January, Thales announced its leadership in the SEACURE program to enhance Europe’s underwater warfare capabilities.
In a recent interview with CNBC, Caine said the flood of EU military spending should stay in Europe.
“If you want to be autonomous, if you want to give meaning to the word sovereignty, you need to be independent from third parties and be as self-sufficient as possible in this type of capability,” he said.
Rheinmetall
Headquartered in Düsseldorf, Germany, the automotive and arms manufacturer saw revenue of €8.83 billion under the guidance of CEO Armin Theodor Papperger.
Rheinmetall manufactures tanks, air defense systems, autonomous ground vehicles, guns, missiles, and bombs. Most notably, it produces the Panther KF51 main battle tank.
Rheinmetall also offers flight surveillance systems and aircraft cannons.
The company’s naval division supplies weapons, sensors, and air defense to ships, along with military simulation and training.
Leonardo
Led by CEO Roberto Cingolani, the Rome, Italy-based company generated more than €20.9 billion in sales last year.
The company is most famously known for its helicopter production, such as the TrekkerM multi-role platform.
The company is part of the Global Combat Air Program (GCAP), which includes BAE Systems and Mitsubishi Heavy Industries in Japan. The GCAP is working to produce the next-generation of fighter aircraft.
On Thursday, Leonardo announced a joint partnership with Turkey’s Baykar to produce unmanned aerial vehicles (UAV), in response to the European military spending spike.
The two companies estimate that the European UAV market will reach $100 billion over the next 10 years.
Aside from aviation, Leonardo also specializes in cyber security, electronics, space, and aerostructures.
Saab
Headquartered in Stockholm, Sweden, the company serves civilian and military markets. Under the guidance of CEO Micael Johansson, Saab’s revenue reached nearly $6 billion in 2024.
Saab makes missiles, submarines, sensors, electronics, the Gripen fighter jet, and is developing future unmanned systems.
Additionally, Saab has over 100-years of experience building submarines. In February, Saab announced its remodel of the HMS Halland submarine, adding upgraded sensors and command systems.
“The launch of the HMS Halland is a testament to Saab’s ability to upgrade and deliver advanced submarines with the capabilities the Swedish Navy requires,” said Mats Wicksell, head of Saab’s Kockums business unit. ”With HMS Halland, the Swedish Navy, and by extension NATO, is given additional muscle to defend and monitor the Baltic Sea.”
Airbus
The company famous for its planes used in civilian air travel also serves the defense industry. Led by CEO Guillaume Faury, the aerospace giant generated €69.2 billion in revenue last year, €12.4 billion of which came from defense endeavors.
Within the defense unit, Airbus serves the land, air, sea, space, and cyber domains. Based in Toulouse, France, Airbus is a partner on the Eurofighter Typhoon while other planes in its portfolio include the A400M Atlas transport aircraft and the A330 MRTT refueling tanker.
It’s also developing advanced technologies in manned and unmanned platforms, such as Europe's Future Combat Air System.
Safran
Helmed by CEO Olivier Andriès, the Paris-based company generated €27.3 billion in revenue in 2024.
Safran offers navigation technologies, electro-optical systems, targeting systems, parachutes, the Patroller tactical drone, and missile propulsion systems.
Fincantieri
Headquartered in Trieste, Italy, Fincantieri is a top shipbuilder under the leadership of CEO Pierroberto Folgiero. The company has yet to report full-year results but has estimated 2024 revenue will top €8 billion.
As European governments look to boost the defense industry, Fincantieri told Fortune it is poised to significantly expand its presence in naval defense, including submarine and underwater technology.
“We are investing in unmanned systems, AI-driven decision-making for autonomous underwater missions, and advanced communication networks to connect subsea assets with surface and space-based systems,” the company said in a statement.
Dassault Aviation
Led by Éric Trappier, Dassault Aviation makes military aircraft and business jets. Headquartered in Paris, France, it raked in €6.2 billion in revenue in 2024.
Dassault is most famous for its Mirage and Rafale fighter jets. In addition, Dassualt holds the prime contract under the French government for the nEUROn, an unmanned aircraft.
