Stock Markets February 13, 2026

UK Announces More Than £500 Million Air-Defense Package for Ukraine; Defense Stocks Rise

BAE Systems, Rheinmetall, Saab and Leonardo see gains after London details missile deliveries, production transfers and NATO aid funding

By Ajmal Hussain
UK Announces More Than £500 Million Air-Defense Package for Ukraine; Defense Stocks Rise

Shares of major European defense contractors rose on Friday after the UK unveiled an air-defense support package for Ukraine valued at over £500 million. The announcement includes direct missile deliveries, a £150 million contribution to NATO's PURL, a Belfast-made missile order, and future shipments of missiles and artillery rounds coordinated through allied channels.

Key Points

  • The UK announced an air-defense package for Ukraine worth more than a3500 million, prompting gains in shares of BAE Systems, Rheinmetall, Saab AB and Leonardo S.p.A.
  • The package includes a a3150 million contribution to NATOs PURL, coordination of US-delivered interceptors, and an additional 1,000 Belfast-made Lightweight Multirole Missiles tied to a a3390 million deal that supports production transfer and Rapid Ranger systems.
  • Further deliveries planned through the Air Defense Consortium include 1,200 more air-defense missiles and 200,000 rounds of artillery ammunition to arrive in the coming months.

Shares of BAE Systems, Rheinmetall, Saab AB and Leonardo S.p.A. traded higher on Friday after the UK government revealed a new air-defense assistance package for Ukraine valued at more than a3500 million.

The announcement, made as Defense Secretary John Healey co-chaired the 33rd meeting of the Ukraine Defense Contact Group at NATO, laid out several coordinated elements intended to increase Ukraine's air-defense capacity.

Key components include a direct UK contribution of a3150 million to the NATO Prioritised Ukraine Requirements List (PURL). That initiative coordinates purchases of air-defense interceptors for Ukraine and involves NATO arranging deliveries of defense equipment from the United States.

In addition to the PURL funding, the UK will supply an extra 1,000 Lightweight Multirole Missiles that are manufactured in Belfast. The government characterized the related a3390 million deal as building on collaboration between UK and Ukrainian industry, with measures to transfer production and provide support for Rapid Ranger launchers and associated command-and-control vehicles to Ukraine.

Beyond those items, officials said that in the coming months the UK will push further matériel into Ukraine through the Air Defense Consortium, delivering a further 1,200 air-defense missiles and 200,000 rounds of artillery ammunition.

"As we approach the fifth year of Putins full scale invasion, the UK and our allies are more committed than ever to supporting Ukraine," Healey said in a statement.


The package announced on Thursday combines direct procurement funding, supplier deliveries, and industrial cooperation intended to both bolster Ukraine's immediate defensive capabilities and expand local production and support infrastructure.

Market reaction on Friday reflected investor attention on companies tied to air-defense and munitions manufacturing, with the named defense contractors trading higher following the news.

Details provided by the government emphasize coordination through NATO channels as well as targeted bilateral industrial arrangements, with further shipments scheduled to arrive over the coming months.

Because the announcement spans funding, shipment commitments, and the transfer of production support, it touches multiple operational areas: procurement coordination via NATO, supplier production in the UK, and prospective in-country support for Ukrainian systems.

Risks

  • Timing and delivery schedules are described as occurring "in the coming months," creating uncertainty about when pledged missiles and ammunition will reach Ukraine - impacting logistics and defense supply chains.
  • The PURL initiative depends on NATO coordinating deliveries from the United States, which creates dependence on allied procurement and logistics channels.
  • Transfer of production and support to Ukraine involves industrial coordination between UK and Ukrainian firms, which may face practical and operational complexities during implementation.

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