Amid the ongoing war in Ukraine, member states of the European Union committed in March 2025 to invest 800 billion euros (approximately $944 billion) by 2030 in an ambitious rearmament plan. More than a year following the announcement, it appears that plans are well on their way: EU countries have spent roughly €400 billion (approx. $472 billion) in 2025 alone toward rearmament efforts, actually putting the plan ahead of schedule. Germany and countries in Northern Europe may be leading the way in boosting spending, helping to boost European industry overall, as military spending could climb to as high as 2.5% of European GDP.
For U.S. investors, the plan to beef up European military spending is a complex prospect. Some of the rules of the program limit the use of non-EU components and U.S. procurement, for instance. However, U.S. defense firms and their advanced technologies will still likely play a major role in Europe's rearmament plan in the coming years, and the companies below may be well-positioned to benefit in the process.
