The UK achieved its highest-ever sales for defence exports in 2025 ($20 billion), exceeding all previous records by $4 billion.
The sheer volume of defence sales demonstrates that the size and strength of the UK defence and industrial base are unrivalled among international competitors and represent a catalyst for accelerating growth within the defence sector.
This does not reflect only a short-term development; rather, this represents a fundamental transformation of the UK defence sector.
Furthermore, the UK defence sector will likely continue to expand through 2026, with increased domestic sales and international demand.
War in Ukraine Changes Everything
Europe had relied upon security assumptions formed over a long period of relative stability in a generally peaceful environment. However, the hostilities between Russia and Ukraine have disrupted this image and have caused Europe to look more closely at potential problems within its own defence capabilities. Many nations within Europe are now unable to defend themselves effectively against external threats and, in turn, have had to reach out to the United States and the United Kingdom for assistance in replacing their military systems.
The urgency with which European nations are looking to rebuild their military capabilities is a reflection of both the urgency of addressing the present military threat from Russia and the need to establish a deterrent against future aggressors. For example, Norway's recent announcement that it intends to purchase an order for Type 26 frigate ships worth £10 billion demonstrates Norway's ongoing concern regarding the escalating number of Russian submarines operating along the North Atlantic (an area critical for energy transportation, undersea telecommunications and NATO military support) as well as Norway's long-term objective of building and maintaining a viable deterrent force against any future threats. The presence of Type 26 frigate ships in the North Atlantic is an example of how to use military equipment as a message demonstrating Norway's preparation for long-term challenges.
Additionally, Turkey's recent announcement that it intends to purchase an order for Eurofighter Typhoon aircraft valued at an estimated £8 billion embodies the same concept as Norway's decision; however, it is situated on Turkey's southern flank (an area of significant volatility and uncertainty). By bolstering NATO's southern flank, this order will help to stabilise the region, which has been facing an influx of new security threats emerging from disarray, war, political revolution, and mass migration. Furthermore, this order will also benefit nearly 20,000 skilled workers and their families employed by the Eurofighter programme.
Defence Exports Become an Economic Weapon
The rapid growth of exports is having tangible effects across the country.
Shipbuilding facilities, aerospace companies, and defence supply firms located in Scotland, Lancashire, and the Midlands have reached peak production volumes.
Highly skilled engineers who had been at risk of being out of work now have stable jobs for many years to come.
The defence sector is not viewed as an expense; it has become a major source of economic development for multiple regions and, by supporting innovation and creating jobs, will continue to play an important role in preserving and further developing the British manufacturing industry during uncertain times.
Why 2026 Could Go Even Further
Government representatives are already saying that in 2026, the record set this year could be broken due to increased worldwide military spending and new export channels.
With the AUKUS partnership between the United States, Australia, and the UK, additional high-value contracts will be created, while interest in British tracked armoured vehicles and advanced weaponry increases.
Allies are now making decisions without delay, and because of Russia's invasion of Ukraine, speed and preparedness have become the highest priority.
A Clear Message to Moscow and the World
The UK's £20 billion worth of defence exports is a clear indication that the UK will not sit idly by and watch the world's instability continue to unfold, but instead will strengthen NATO, arming those countries allied to the UK, and turning the security pressures that exist into economic and strategic advantages.
As long as there is a conflict in Ukraine, and as long as Russia continues to push the West, the demand for British defence capabilities will remain extremely high, as this is not the end of a lucrative period but the beginning of a much more dangerous and even harder era defined by strength, speed and industrial might.
