June 2025 began with the publication of the UK Strategic Defence Review (SDR), which aims to transform defence and make the UK secure at home and strong abroad.
The review places integration, partnerships and digital transformation at the heart of its approach, with specific priorities including moving to warfighting readiness, driving economic growth, stepping up European security with a “NATO first” posture, accelerating UK innovation informed by lessons from Ukraine and embracing a whole-of-society approach.
The SDR’s ambition to make defence an engine for economic growth was underscored by a landmark report from the Royal United Services Institute (RUSI), launched the same week at Westminster with Leonardo as a key collaborator. The report revealed the profound impacts of defence spending on UK prosperity, highlighting higher-than-average salaries, strong STEM employment, inclusive opportunities driving social mobility and technological spillover into civil markets.
With 8,500 highly skilled employees across nine UK sites and a supply chain sustaining a further 31,700 jobs, Leonardo provides the onshore capability and national resilience needed to ensure the UK and its allies can meet the complex threats of the 21st century.
The RUSI report cited Oxford Economics data showing Leonardo jobs in Yeovil pay an average of £51,000 compared to the local average of £32,000, and that every Leonardo job generates a third of another through spending. With two-thirds of Leonardo’s 2,100 UK suppliers being SMEs and 28% of supply chain spend directed to them, the report reinforced defence as a growth generator for the UK economy.
Echoing the SDR’s call for innovation and operational advantage, the UK Government announced £204.6m of funding for the production and integration of the ECRS Mk2 radar for the Royal Air Force (RAF) Typhoon fleet. Developed by BAE Systems and Leonardo in Warton, Edinburgh and Luton, the radar will transform the capability of the RAF Typhoon with world-leading electronic warfare capability, enabling simultaneous detection and tracking of multiple targets. This investment secures long-lead manufacturing elements ahead of full-rate production later in 2025, sustaining 600 jobs across UK industry and supporting a wider capability upgrade that will maintain Typhoon’s operational edge into the next decade.
Cyber resilience – another SDR priority – advanced with Leonardo securing a three-year contract to manage red team and adversary simulation operations across UK Armed Forces bases and networks. Drawing on its own expertise and best-of-British suppliers, Leonardo will deliver simulated attacks replicating real-world adversaries to identify vulnerabilities and strengthen defences. This contract builds on Leonardo’s fast-growing UK cyber business, which doubled revenue between 2020 and 2023 and achieved £100m in 2024.
Global collaboration also took flight with the official launch of Edgewing, a joint venture between Leonardo, BAE Systems and Japan Aircraft Industrial Enhancement Co. Ltd. Edgewing will lead the design and development of the next-generation combat aircraft under the Global Combat Air Programme, setting a new benchmark for trilateral industrial partnership. Headquartered in the UK, the venture will unite expertise across three nations to deliver sovereign combat air capability, resilient supply chains and long-term economic benefits, with an in-service date targeted for 2035.
During the month, hundreds of professionals gathered for AeroWomen 2025 in Yeovil to celebrate the diverse ways women are shaping aerospace innovation, from autonomous rotorcraft to advanced engineering roles. Inspiring stories and candid discussions highlighted the power of role models and the importance of diversity of thought in driving better outcomes for the sector.
At the same time, Leonardo volunteers in Bristol mentored students at local Special Educational Needs schools through the Unlock Cyber initiative, breaking down barriers to cyber careers and learning as much from the students as they taught. This adaptive approach reflects Leonardo’s commitment to widening participation and fostering future talent in line with the SDR’s whole-of-society ethos.
Leonardo also reaffirmed its support for the Armed Forces community during Armed Forces Week, with celebrations across UK sites and reiteration of our pledge to the Armed Forces Covenant.
Earlier in the year, Leonardo strengthened its ties with the local community by becoming a Friend of the Lincoln City Foundation, focusing its support on developing girls’ football skills. That commitment to sport and community engagement came full circle in June when Leonardo hosted its third annual Charity Football Tournament at Lincoln City FC’s LNER Community Stadium. The event united teams from across the aerospace sector and armed forces to raise over £6,400 for Dementia UK, capping a six-month fundraising drive that has already surpassed £10,000.