Europe’s 2025 Defense Shift Boosts Saab and Rheinmetall
Europe’s shifting defense landscape in 2025 has produced distinct winners and exposed vulnerabilities in key multinational programs, according to the article “Europe’s 2025 defense winners include Saab, Rheinmetall; FCAS falters,” published by Defense News. Against a backdrop of heightened security concerns and increased military spending across the continent, defense firms such as Sweden’s Saab and Germany’s Rheinmetall have emerged as prominent beneficiaries of recent developments.
Rheinmetall’s robust performance can largely be attributed to the ongoing demand generated by the war in Ukraine and broader European rearmament efforts. The company, which produces a wide range of land systems and munitions, has reportedly seen a surge in orders, particularly from Central and Eastern European nations seeking to modernize their ground forces. According to industry analysts, Rheinmetall’s ability to scale production quickly and adapt to evolving requirements has cemented its role as a critical supplier amid growing concerns about NATO’s readiness.
Meanwhile, Saab has capitalized on its strong aircraft portfolio and growing interest in the JAS 39 Gripen fighter jet, notably in Eastern Europe and Latin America. Its expanding footprint in radar technologies and command-and-control systems has further reinforced its position as a highly adaptable mid-tier defense exporter. Sweden’s accession to NATO in 2024 has also bolstered Saab’s strategic appeal, opening new pathways for collaboration and procurement within the alliance.
By contrast, the ambitious Future Combat Air System (FCAS), a joint initiative involving France, Germany, and Spain, appears to have hit significant headwinds. Initially conceived as Europe’s answer to sixth-generation air superiority, the program’s development has been beset by industrial disagreements, cost concerns, and divergent national priorities. As Defense News reports, progress on the project has slowed, raising questions about its feasibility and timeline. Analysts warn that further delays could erode European technological competitiveness and increase reliance on U.S. aircraft such as the F-35.
The continuing disparity between national defense strategies has also influenced other collaborative efforts. While NATO countries are aligned in their strategic goals, national procurement decisions often reflect differing threat perceptions and industrial protection interests. Countries like Poland have continued investing heavily in U.S.-made systems, despite the existence of EU-based alternatives—a trend that underscores persistent transatlantic dependencies.
Looking ahead, the European defense sector faces a balancing act: meeting urgent near-term requirements while investing in future capabilities. Without greater political cohesion and streamlined procurement frameworks, flagship multinational initiatives such as FCAS and the Main Ground Combat System (MGCS) may struggle to deliver on their promises.
Nevertheless, companies that can offer proven, quickly deployable systems are likely to remain at the forefront of Europe’s defense rearmament. As Defense News highlights, the current environment favors agility and reliability—traits that firms like Rheinmetall and Saab have demonstrated with increasing consistency. Their success in 2025 serves as both a measure of industry resilience and a bellwether of Europe’s evolving defense priorities amid a rapidly shifting global order.
