Finance
UK awards Leonardo 1 billion pound military helicopter contract
Published by Global Banking & Finance Review®
Posted on March 2, 2026
1 min readLast updated: March 2, 2026
Quick Summary
Britain has awarded a £1 billion contract to Leonardo for 23 AW149 military helicopters to be built at its Yeovil plant, safeguarding ~3,300 jobs and boosting the UK supply chain with over 40 % of work onshore and export opportunities.
UK Awards £1 Billion Helicopter Contract to Leonardo, Securing 3,300 Jobs
Major Defence Contract Strengthens UK Industry and Armed Forces
Contract Details and Economic Impact
LONDON, March 2 (Reuters) - Britain on Monday awarded a 1 billion pound ($1.35 billion)contract to Italian defence contractor Leonardo to build a new fleet of military helicopters, securing 3,300 jobs at the company's manufacturing site in Yeovil, southwest England.
Scope of the Helicopter Deal
Leonardo will provide British armed forces with 23 new medium-lift helicopters to work alongside uncrewed aircraft, the government said.
Future Opportunities and Local Benefits
It also paved the way for future international orders to be built in Britain, with more than 40% of the work set to be carried out in Yeovil, it said.
Leonardo had warned that it could lose Britain's last military helicopter manufacturing site if it did not secure the order.
Government and Industry Reactions
Defence Secretary John Healey said the contract strengthened Britain's armed forces, secured thousands of jobs and set up big opportunities for exports.
Financial Details
($1 = 0.7416 pounds)
Reporting Credits
(Reporting by Paul Sandle; Editing by Hugh Lawson)
Key Takeaways
- •The £1 billion Leonardo contract secures production of 23 medium‑lift AW149 helicopters at Yeovil, preserving around 3,300 jobs at Britain’s last military helicopter manufacturing site and supporting thousands more in the supply chain (theguardian.com).
- •Leonardo will produce more than 40 % of the helicopters’ work in Yeovil, reinforcing the UK’s aerospace industrial base and positioning future export orders to be manufactured domestically (ft.com).
- •The contract ends long-standing uncertainty over the plant’s future and aligns with UK defence modernization under the New Medium Helicopter programme, replacing the aging Puma fleet and delivering strategic industrial and security benefits (ft.com).
References
Frequently Asked Questions about UK awards Leonardo 1 billion pound military helicopter contract
1What is the value of the UK military helicopter contract awarded to Leonardo?
The UK awarded Leonardo a contract worth 1 billion pounds ($1.35 billion) to build new military helicopters.
2How many jobs will be secured by the Leonardo helicopter contract?
The contract secures 3,300 jobs at Leonardo's Yeovil manufacturing site in southwest England.
3How many helicopters will Leonardo supply to the British armed forces?
Leonardo will provide 23 new medium-lift helicopters to the British armed forces.
4What percentage of the contract work will be carried out in Yeovil?
More than 40% of the contract work will be undertaken at Leonardo's Yeovil site.
5What are the export prospects related to this contract?
The contract paves the way for future international orders to be built in Britain, boosting export opportunities.