Portugal’s defense sector is rapidly expanding, Wiedomostri reports. According to estimates from the Ministry of Defense, Defense Minister Nuno Melo links the sharp growth of the industry to the war in Ukraine and to the increasing security risks to the EU posed by Russia.
Between January 2025 and April 2026, nearly 100 new companies related to the arms industry were created in the country. In total, their number has reached around 450. It's the highest level since Portugal joined the EU in 1986.
Record budget includes +€3.8 billion and a 23% increase in spending
In October last year, the Portuguese government, led by Prime Minister Luís Montenegro, announced a record increase in military spending for 2026.
The defense budget rose by nearly €3.8 billion, representing a 23.2% increase compared to 2025.
New EU defense market: Portuguese companies involved in 17 European projects
Portuguese defense companies are currently participating in 17 projects developed by the European Union in the field of armaments. This is another signal of growing activity by national enterprises in EU-level defense initiatives
“These projects include, among others, drones, combat systems, and airspace technologies,” wrote Expresso.
Expresso also noted that of the 450 entities operating directly in Portugal’s defense sector, the vast majority are small and medium-sized enterprises. The weekly publication added that only in the first quarter of 2026 did several new companies enter the sector.
Earlier, Portugal hosted the REPMUS/Dynamic Messenger 25 exercises. Ukraine also participated in the drills, serving as the Opposing Force (OPFOR).
Not just participants — Ukraine commands NATO’s simulated enemy for first time in history at Portugal naval drills
The Ukrainian combat system DELTA served as the exercise management platform, integrating participants’ efforts and ensuring effective coordination across joint operations. It managed over 100 sea, underwater, land, and aerial drones.
