Naval Group sees Europe 'buying European' more, CEO says

PARIS, July 8 - Naval Group CEO Pierre-Eric Pommellet said on Wednesday that European governments choose to "buy European" more than they did before, amid a push on the continent to develop strategic autonomy.

Naval Group's revenue from Europe has sharply risen since 2019 and is poised to increase even further in the coming years, Pomellet said.

"In 2019, Naval Group generated zero euros in revenue in Europe," Pommellet told Reuters on the sidelines of the annual general meeting of France's GICAN naval industry association.

"In 2026, we will generate €1 billion, and we will reach €1.5 billion in the coming years thanks to Belgium, the Netherlands, Greece, and now Sweden, which has chosen us."

INCREASED COMPETITION

Faced with the threat posed by Russia since its 2022 invasion of Ukraine and with U.S. President Donald Trump's administration's reluctance to fund Europe's defence, European governments' efforts to upgrade their navies have also led to an increase in competition among European rivals.

France's Naval Group lost out on major submarine programmes in Canada and Poland to Germany's TKMS and Sweden's Saab and a frigate contract in Norway to Britain's BAE Systems last year, before securing a significant contract in May to supply frigates to Sweden.

Pommellet said it was too early to say if its victory with Sweden might help secure a frigate contract that Denmark is due to award.

A strategic asset for France and the centrepiece of its naval industry, Naval Group builds and maintains the French Navy's most critical warships, nuclear-powered submarines and its aircraft carrier, making it a key pillar of France's defence capabilities and nuclear deterrence.

According to Naval Group's website, at the end of 2025, the French state owned 62.25% of Naval Group, while 35% was owned by defence electronics specialist Thales. The French state also owns about a 26% stake in Thales.

(Reporting by Florence Loève; Editing by Makini Brice)