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News / Europe / European defense manufacturers project strong growth amid global instability
European defense manufacturers project strong growth amid global instability
Published: 14.03.2024
European defense manufacturers concluded 2023 on a positive note, witnessing increased sales and profits amid a backdrop of wars and geopolitical instability, factors they anticipate will continue driving orders in the coming months.
Rheinmetall, based in Germany, anticipates sales of approximately 10 billion euros ($10.95 billion) for the current year, up from EUR7.18 billion in 2023. This forecast surpasses analysts' expectations for 2024, marking an improvement of roughly EUR2.82 billion from the previous year and signaling the first time in its history that sales are projected to reach the EUR10 billion milestone. Net profit for Rheinmetall rose to EUR535 million in 2023 from EUR474 million in 2022, while operating profit increased to EUR918 million from EUR769 million. The company expects an operating margin between 14% and 15% for 2024, surpassing the 12.8% recorded in the previous year.
Leonardo, headquartered in Italy, foresees continued growth in new orders through 2028, primarily driven by its defense electronics and security business. New orders are expected to rise to approximately EUR22.6 billion in 2028 from EUR17.93 billion in 2023, with a cumulative total of about EUR105 billion for the period. Revenue is projected to increase to around EUR21.3 billion in 2028 from EUR15.29 billion in 2023.
Thales, based in France, anticipates robust sales growth in the current year following a surge in military spending that propelled orders to a record high. The company reported sales of 18.43 billion euros ($20.18 billion) for 2023, up 4.9% in reported terms and 7.9% organically. Sales in Thales's defense and security business grew 7.5% organically to EUR9.80 billion, comprising the majority of revenue. Thales projects sales between EUR19.7 billion and EUR20.1 billion for the year, representing a 4% to 6% organic increase.
BAE Systems from the U.K. expects sales to grow by 10% to 12% in 2024 compared to the reported 25.28 billion pounds ($32.35 billion) in 2023. The company's order intake rose to GBP37.7 billion in 2023, with an order book of GBP58 billion as of December 31.
Saab, headquartered in Sweden, experienced a rise in fourth-quarter earnings and increased its dividend amid a surge in global defense spending. Net profit climbed to 1.22 billion kronor ($119.3 million) from SEK1.12 billion in the fourth quarter of 2022, with order bookings rising 5.5% to SEK31.5 billion in the quarter. Saab targets organic sales growth of between 12% and 16% for 2024.
Rheinmetall, based in Germany, anticipates sales of approximately 10 billion euros ($10.95 billion) for the current year, up from EUR7.18 billion in 2023. This forecast surpasses analysts' expectations for 2024, marking an improvement of roughly EUR2.82 billion from the previous year and signaling the first time in its history that sales are projected to reach the EUR10 billion milestone. Net profit for Rheinmetall rose to EUR535 million in 2023 from EUR474 million in 2022, while operating profit increased to EUR918 million from EUR769 million. The company expects an operating margin between 14% and 15% for 2024, surpassing the 12.8% recorded in the previous year.
Leonardo, headquartered in Italy, foresees continued growth in new orders through 2028, primarily driven by its defense electronics and security business. New orders are expected to rise to approximately EUR22.6 billion in 2028 from EUR17.93 billion in 2023, with a cumulative total of about EUR105 billion for the period. Revenue is projected to increase to around EUR21.3 billion in 2028 from EUR15.29 billion in 2023.
Thales, based in France, anticipates robust sales growth in the current year following a surge in military spending that propelled orders to a record high. The company reported sales of 18.43 billion euros ($20.18 billion) for 2023, up 4.9% in reported terms and 7.9% organically. Sales in Thales's defense and security business grew 7.5% organically to EUR9.80 billion, comprising the majority of revenue. Thales projects sales between EUR19.7 billion and EUR20.1 billion for the year, representing a 4% to 6% organic increase.
BAE Systems from the U.K. expects sales to grow by 10% to 12% in 2024 compared to the reported 25.28 billion pounds ($32.35 billion) in 2023. The company's order intake rose to GBP37.7 billion in 2023, with an order book of GBP58 billion as of December 31.
Saab, headquartered in Sweden, experienced a rise in fourth-quarter earnings and increased its dividend amid a surge in global defense spending. Net profit climbed to 1.22 billion kronor ($119.3 million) from SEK1.12 billion in the fourth quarter of 2022, with order bookings rising 5.5% to SEK31.5 billion in the quarter. Saab targets organic sales growth of between 12% and 16% for 2024.
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