Leonardo UK has landed a billion-dollar contract with the British government to build 23 new medium-lift helicopters (NMH) for the country’s armed forces.
On March 2, 2026, the UK government confirmed that the Leonardo facility in Yeovil would become the global center for the aircraft manufacturer’s military helicopter production and exports.
The agreement worth $1.3 billion (£1 billion) secures the future of the Yeovil site and its position as Britain’s last remaining military helicopter production line.
The decision to fund production of new AW149 helicopters in Yeovil, was the victim of last minute wranglings within the UK government.
“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,” said Defence Secretary John Healey.
He added: “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.”
The deal paves the path for future military international orders to be built in the UK, with around 20 countries having requirements for new medium-lift helicopters.
“Together with Leonardo’s other helicopters, international orders for NMH could generate over £15 billion in exports over the next 10 years,” said a spokesperson for the UK’s Ministry of Defense.
Future military helicopter autonomy
The contract will also help fund Yeovil as the center of excellence for military helicopter autonomy and furthers the UK’s investment in the Leonardo Proteus, the country’s first autonomous uncrewed air system.
In January 2026, the British Royal Navy successfully completed the maiden flight of Proteus which is being developed to conduct a range of missions including anti-submarine warfare, Intelligence, Surveillance, and Reconnaissance (ISR) and search and rescue.
“The development of uncrewed and autonomous technology in the UK is at the heart of the government’s Defence Industrial Strategy and could offer the opportunity to make platforms such as NMH optionally crewed,” added the spokesperson.
Leonardo’s facility in Yeovil sustains 3,300 jobs, including 650 people working directly on new medium-lift helicopters. The agreement also provides ongoing support and manufacture of the Merlin and Wildcat helicopter fleets.
The agreement paves the path for future export orders of the AW149 helicopter to be built in the UK, significantly expanding the workshare for the aircraft and growing the local workforce in the South West, with a potential to sustain 3,900 jobs – a 20% increase.
🚁Huge News for Yeovil – And A Major Boost For Local Skills!🚁
— Yeovil College (@YeovilCollege) March 2, 2026
We are delighted to celebrate the official announcement that the Government has officially awarded the New Medium Lift Helicopter (MLH) contract to Leonardo in Yeovil.#ChangingLives #LeadingDefenceEducation pic.twitter.com/h3AA6O2rY2
“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,” said Nigel Colman, Managing Director of Helicopters UK at Leonardo.
Lessons from Ukraine
According to the MoD, the AW149 NMH delivers multiple rotary wing requirements using a single aircraft type which means that the platform can undertake defence tasks that were previously delivered by three different aircraft types.
The war in Ukraine has raised questions regarding the effectiveness of helicopters in modern warfare.
“As the nature of warfare changes, the war in Ukraine has highlighted the continued importance of helicopters on the battlefield – transporting forces, kit and capabilities in complex environments,” said the spokesperson.
The Sunday Times previously reported that there was some skepticism inside the UK’s HM Treasury over whether crewed helicopters could still justify their cost following combat lessons from Ukraine and the rapid growth of drones and air defenses.