US defense companies are pleading for European rivals and targeting close partnerships.
While some executives of America’s biggest defense group struggled to highlight long-standing transatlantic ties at last week’s Paris Air Show, they also pledged to help European countries develop their sovereign capabilities.
“We are an American company, but we are also a global company,” said Byrne Peters, vice-chairman of business development and strategy for Boeing’s defense division.
Message to European Boeing partners: “As they think through their sovereign capabilities… (Is that so?) we’re with them to help them develop it,” he said on the show.
US defense technology group Andrill has shown a similar approach after announcing a new partnership to develop German Rhinemetal and European drones.
More US groups are focusing on opportunities for joint development and local production, and Andrill said the alliance reflects a philosophy that “not built, not built.”
Higher European defence spending was driven by war in Ukraine and pressure from US President Donald Trump, putting pressure on US President Donald Trump to contribute more to local security, industry analysts said.
The US offers growth, but Europe was where opportunities were available. When investors in particular ask, “What is your growth rate and where do you find new businesses?”, said Byron Curran, managing partner at the research group Capital Alpha Partners.
According to industry experts at the show, major American defense contractors make up a significant portion of their annual revenues in Europe, where they have long-standing relationships in Europe, and they hoped that deeper partnerships would ensure they would do business on the continent.
The region accounted for around 11% of both Lockheed Martin and RTX’s annual revenue in 2024. Multiple European troops have Lockheed F-35 fighter jets, but the RTX patriot missiles were by far the market leader in air defense.
RTX defense subsidiaries Lockheed and Raytheon have announced extensive joint production partnerships on the continent over the past two years. Lockheed has established large-scale missile production with Rhinemetal, and a joint venture between Raytheon and European missile manufacturer MBDA will produce patriot missiles for Germany’s NATO.
Thomas Laliberty, president of Raytheon’s land and air defense systems, said countries are taking “a different approach to what sovereignty means.”
Raytheon added that he did his best, “to understand each of them and to the extent we can help them meet those requirements.”
Lockheed Martin Chief Operating Officer Frank St. John told Paris’ Financial Times that the company is expanding its manufacturing business as well as its supply chain in Europe.
The company’s partnership will “become a partner with European countries, European countries, and therefore will help us as Europe buys more within Europe,” he said.
Lockheed is ensuring the partnership is eligible for funding in the region and can meet European requirements, he added.
Boeing said it would “study what collaborative opportunities are available.” Peters said the company is keen to redevelop its joint development approach with Australia in Europe.
However, US contractors also had to navigate questions about whether America is a trustworthy ally under the US.
Concerns that the US could remotely secure major weapon systems, such as advanced F-35 fighter jets – the pentagon has heightened calls to European countries to reduce their reliance on imported weapons.
One particular concern among European defence executives is that companies may encounter problems in the future ensuring new equipment exports and software upgrades.
Weapons covered by US international transport in Arms Regulations or in ITAR rules cannot be constructed, sold or supplied to anyone else without our consent and support. The restrictions are not new, but executives said questions about Washington’s credibility as a partner sparked debate among some of its allies.
MBDA CEO Eric Bellanger said the company values cooperation with its US partners, but it’s a question for the government whether it “want to stay under the sword of Damoclean, it’s italic.” He added that the nation has “various attitudes.”
Roberto Singorani, CEO of Italy-based Leonardo, said it is important to ensure weapons interoperability under the umbrella of the NATO Security Alliance.
Leonardo is part of a consortium in which the UK BAE systems and Japan’s Mitsubishi Heavy Equipment are developing next-generation fighter jets, with some analysts questioning whether the project intentionally tries to maintain US components or “Itar Free.”
“I’m… very neutral,” Shingorani told Fort. “Whatever you do with your colleagues or an American under the NATO umbrella, it must be established in a very clear way.”
He said that in order for weapons to be interoperable between allies, it is important for individual countries to ensure the ability for them to modify or upgrade the necessary software or components as needed.
US industry executives pointed out that Washington’s recent move to reform the country’s “foreign military sales” process used to deliver weapons to international partners should enable defense companies to facilitate business abroad.
European leaders emphasized that the continent has the ability to protect itself, but admitted that it would take time. Even with more funds, the region needed to reduce fragmentation of the arms industry.
“We have brains, we have industrial tools, we have people, we have money,” Bellanger said. “It’s simply a matter of political will and the way we constitute ourselves, but we have the ability to be as sovereign as we want.”
