A £1 billion defence contract awarded to Leonardo UK will secure thousands of skilled British jobs, strengthen the Armed Forces’ battlefield capabilities and open the door to as much as £15
billion in exports over the next decade.
Under the deal, Leonardo will supply 23 New Medium Helicopters (NMH) to the UK Armed Forces, with production centred in Yeovil, cementing the town’s status as the global hub for the company’s military helicopter manufacturing and export operations.
The agreement goes beyond aircraft delivery. It positions the UK as a leader in helicopter autonomy and uncrewed systems, a priority area under the government’s Defence Industrial Strategy. Yeovil will become a centre of excellence for autonomous helicopter technology, supported by further Ministry of Defence investment in Proteus — the UK’s first autonomous uncrewed rotary aircraft, which completed its maiden flight earlier this year.
International demand could be substantial. Around 20 countries are seeking new medium-lift helicopters, and future overseas orders built in the UK could generate more than £15 billion in exports over the next 10 years, with the UK workshare exceeding 40%.
The contract secures 3,300 jobs at Leonardo’s Yeovil site, including 650 roles directly linked to the NMH programme, alongside work supporting the Merlin and Wildcat helicopter fleets. A further 70 UK suppliers are involved, safeguarding specialist defence skills and expertise for decades. Leonardo has said the programme could eventually support up to 3,900 jobs locally as export orders grow.
Defence Secretary John Healey MP said: “This defence investment works for Britain on every level. It strengthens our Armed Forces, secures thousands of skilled British jobs, and sets up big export opportunities. It is a major vote of confidence in British industry, British workers and British innovation.
This Government’s broad deal makes Yeovil the proud home of Leonardo’s global military helicopter production, building world-class helicopters for our forces and allies around the world for many years to come. It backs British jobs and security today and makes the UK a pace-setter in uncrewed, technology and innovation for tomorrow”.
Chancellor Rachel Reeves said: “In an uncertain world we are backing Britain’s world‑class defence sector to both keep Britain safe and drive economic growth.
This historic partnership not only supports British jobs and security today, but positions the UK and its allies at the forefront of the next generation of defence and autonomous systems tomorrow”.
The helicopters will be built to operate alongside uncrewed aircraft and are designed for a wide range of missions, from frontline combat support to humanitarian assistance and disaster relief. Lessons from the war in Ukraine have underlined the continuing importance of helicopters in modern warfare, particularly in complex and contested environments.
Nigel Colman, Managing Director of Helicopters UK, Leonardo said: “We welcome the decision to award the New Medium Helicopter contract to supply medium lift helicopters to the Ministry of Defence, as well as the continued investment in Proteus – our autonomous rotary wing uncrewed air system in development with the Royal Navy.
Leonardo is committed to providing the UK Armed Forces with a world-class medium lift helicopter based on our leading AW149 platform that will serve our military personnel for many years to come.
The Government’s procurement of the AW149, as well as the continued investment in autonomy, will support more than 3,300 jobs in Yeovil, the Home of British Helicopters, as well as 12,000 across the UK supply chai”n.
Backed by the largest sustained rise in defence spending since the Cold War — set to reach 2.6% of GDP from 2027 — the NMH deal marks a significant milestone for British defence industry, regional employment in the South West, and the UK’s ambition to lead in advanced military aviation. Photo: LPhot Dan Rosenbaum/MOD, Wikimedia commons.