British Defence Exports Hit Record High in 2025

Homeland January 6, 2026

The UK Ministry of Defence has reported a record-breaking year for the national defence industry, with export valuations exceeding £20 billion in 2025. This figure represents the highest annual total since records began in 1983 and underscores the government’s strategic shift toward using the defence sector as a primary driver for national economic growth.

This performance aligns with the objectives outlined in the recent Strategic Defence Review, which emphasises the expansion of export markets to strengthen the domestic industrial base and enhance interoperability with NATO allies.

A primary catalyst for this growth is the £10 billion agreement with Norway for the export of at least five Type 26 frigates. For the UK supply chain, this contract is particularly significant as it directly involves over 430 businesses of varying sizes and is expected to support 4,000 jobs across the country.

This maritime success is paralleled by significant activity in the aerospace sector, most notably an £8 billion deal with Türkiye for the procurement of 20 Typhoon fighter jets. This agreement is projected to sustain 20,000 jobs, particularly in the manufacturing hubs of Lancashire and Scotland. Further aerospace activity includes the £550 million sale of 12 C-130 aircraft to Türkiye, a move that secures 1,400 roles at Marshall Aerospace Group in Cambridge.

Supply chain opportunities are also extending to specialised land systems. Devon-based Supacat has secured a contract to provide 18 transporter vehicles to the Czech armed forces, demonstrating the international demand for UK-engineered niche capabilities. Furthermore, the newly ratified AUKUS treaty with Australia presents a long-term pipeline for the industry, with a potential export value of £20 billion and the capacity to support 21,000 jobs.

To facilitate these international transactions, the Ministry of Defence is implementing the most substantial structural reforms in five decades. The establishment of the National Armaments Director (NAD) Group and the specialized International Collaboration & Exports (IC&E) team is designed to provide a single point of contact for industry, streamlining the path from domestic development to international sale.

Additionally, the UK’s recent entry into the Agreement on Defence Export Controls alongside France, Germany, and Spain is expected to reduce regulatory friction for businesses exporting to partner nations. Looking toward 2026, the government has identified advanced maritime technology, uncrewed systems, and the Boxer armoured vehicle platform as priority areas for further export growth, offering continued opportunities for sub-contractors and Tier 1 suppliers alike.

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