Spain has authorised nearly 12 billion euros in military modernisation contracts, awarding major naval and aviation upgrade packages to shipbuilder Navantia and aerospace manufacturer Airbus.
The Spanish government approved the extensive defence spending package during a Council of Ministers meeting on Tuesday. Almost half of the total funding is destined for Navantia and Airbus, while remaining allocations cover multi-billion-euro investments in advanced air defence batteries, anti-drone systems, and long-range cruise missiles.
Navantia emerged as the biggest industrial beneficiary of Tuesday's decision, securing contracts with a combined value of nearly 4.642 billion euros. The primary contract awarded to the state-owned naval constructor is valued at 2.373 billion euros and focuses on the modernisation and evolutionary development of the S-80 submarine fleet.
The government also approved substantial contracts for surface fleet upgrades. Navantia will undertake modernisation work on the Galicia-class amphibious assault ships under a 595 million euro deal, alongside a 527 million euro programme to refit and update Segura-class minehunters.
The shipbuilder will expand the fleet with new vessels as well. The cabinet authorised 591 million euros for the design and construction of a dedicated intelligence-gathering ship, 345 million euros for a new oceanic hydrographic vessel, and approximately 210 million euros for general fleet maintenance across other platforms.
Navantia naval programmes and European patrol corvettes
The latest allocations follow three major state loans approved by the cabinet late last month, which provided nearly 2.2 billion euros in prefinancing for three military modernisation initiatives to be carried out by Navantia.
The largest of those projects is Spain's formal participation in the European Patrol Corvette programme, known as the EPC. The multinational initiative is managed by the Organisation for Joint Armament Cooperation, or OCCAR, and unites Spain with France, Italy, Belgium, Germany, and the United Kingdom to design and build six next-generation corvettes under an overall financing package of 1.786 billion euros.
The loan package also earmarked 210 million euros for the technological modernisation of the Segura-class minehunter fleet and 200 million euros to sustain and upgrade various naval surface and submarine assets, including the S-80 submarines.
Navantia is Spain's premier state-owned shipbuilding enterprise, operating major dockyards and engineering facilities in Ferrol, Cartagena, and the Bay of Cadiz. The company designs and maintains the naval vessels that form the core of the Spanish Armada.
Airbus helicopter and transport aircraft contracts
Airbus received a major contract valued at 996 million euros to manage the modernisation and evolutionary development of the NH90 military helicopter fleet across the Armed Forces.
In official briefing notes released after the Council of Ministers meeting, the government stated that the contract will guarantee operational readiness and provide essential updates through comprehensive sustainment of the helicopters, their onboard systems, and key components.
The rotary-wing award builds on a separate 1.438 billion euro contract approved just one week earlier for the modernisation and maintenance of C295 tactical transport aircraft and A330 Multi Role Tanker Transport planes operated by the military.
Airbus is the original equipment manufacturer for both aircraft types and maintains substantial industrial infrastructure across Spain, including military transport aircraft final assembly lines in Seville and aeronautical engineering operations in Getafe near Madrid.
Air defence networks and anti-drone technology
Ministers also authorised two massive procurement programmes to strengthen ground-based defensive networks, although the government has yet to designate the prime contractors for either initiative.
The largest non-naval package is valued at nearly 3.4 billion euros for high-mobility, high-performance air defence systems. The government explained that the investment aims to enable air and missile defence units of the Armed Forces to deploy effectively, providing comprehensive defensive protection against incoming aerial and ballistic threats.
A second contract, valued at roughly 1.5 billion euros, focuses on anti-drone defensive systems designed to protect forces from unmanned aerial threats. The funding reflects plans first reported by Spanish financial newspaper Expansion in late June.
Spanish defence electronics firm Indra has established an industrial partnership with EM&E and TRC for counter-drone technologies and is widely regarded as the leading contender to win the deal. Engineering firm Arquimea is currently in discussions to join the consortium in order to secure a share of the contracts.
Submarine missiles and Taurus cruise weapon upgrades
The remainder of Tuesday's approved spending focuses on expanding Spain's missile capabilities, with prime contractors still to be selected across three distinct projects.
The executive authorised almost 800 million euros for the development, integration, and acquisition of submarine-launched missiles. The government noted that the procurement will equip S-80 submarines with critical combat capabilities aligned with the operational requirements of the Spanish Navy and matching NATO guidelines.
A further 480 million euros was assigned to the multinational Taurus Neo programme, a European initiative aimed at developing, modernising, and procuring a new generation of long-range air-to-ground cruise missiles.
Government documents describe the Taurus as an aircraft-launched cruise missile built to destroy high-value land targets, including reinforced bunkers and facilities shielded by dense air defence umbrellas, without forcing the launching aircraft to enter hostile airspace.
Ministers approved a separate 65 million euro contract to modernise Spain's existing inventory of Taurus cruise missiles, ensuring that the current stockpile remains operational beyond 2040.
