European defence spending boosts Fincantieri’s share price

(Il Sole 24 Ore Radiocor) - Fincantieri enjoyed a strong trading session on the Milan Stock Exchange, ranking amongst the best-performing shares on the Milan market. The positive sentiment in the defence sector is helping to support the share price (the Stoxx 600 defence index is holding up on a day when almost all other sectors are down), following the publication of the first Annual Defence Readiness Report by the European Defence Agency (EDA). According to a press release, the full version of the report is “intended for government use only and not for public dissemination”. However, the summary confirms the sharp rise in military spending across the EU and the need to accelerate efforts to strengthen capabilities. According to the EDA, defence spending by EU countries reached €418 billion in 2025 – equivalent to 2.2 per cent of European GDP and a 22 per cent increase on the previous year – and could rise to €547 billion by 2029. The report highlights progress particularly ‘in drones, anti-drone systems and the maritime sector’ – an area of significance for Fincantieri – but still points to ‘significant gaps’ to be bridged in terms of capabilities and industrial production, suggesting the possibility of new orders in the near future.

“The report shows that we have achieved a great deal. Defence investment has increased, but there are still significant capability gaps,” said the EU High Representative, Kaja Kallas, in the statement. “We must now focus on how to effectively bridge those gaps.” According to Kallas, “Europe needs a decisive shift in the scale and pace of investment in defence, capability development, innovation and industrial capacity”. The document will be discussed by European leaders at the European Council on 15–16 October and forms part of the Defence Readiness Roadmap 2030, which aims to increase production capacity, security of supply and cooperation between European industry and NATO partners.