Eurosatory 2026: Europe‘s Next Capability Cycle -Follow the Backlog; Not Just Technology

Research evidence excerpt

Eurosatory 2026: Europe‘s Next Capability Cycle -Follow the Backlog; Not Just Technology

Foundation

June 24, 2026 03:00 AM GMT

Morgan Stanley & Co. International plc+MEuropean Defence | Europe Marie-Ange Riggio

Equity Analyst

Eurosatory 2026: Europe's Next Marie-Ange.Riggio@morganstanley.comRoss Law, CFA +44 20 7677-2003

Ross.Law@morganstanley.com +44 20 7677-0560

Capability Cycle -Follow the Leonore Pele

Research Associate

Leonore.Pele@morganstanley.com +44 20 7425-2044

Backlog; Not Just Technology

Aerospace & Defence

Europe

Eurosatory highlights Europe’s rearmament is a combination of Industry View Attractive

replenishment and capability expansion, with new technologies

increasingly integrated onto legacy platforms, partnerships

accelerating access to technology and scale, and EU duplication

rising as sovereignty drives national solutions.

Key Takeaways

The “Old and New” debate is increasingly validated by the industry, with

sustained investment in land systems to integrate new systems (missiles, drones,

air defence).

Strike drones were showcased across booths as increasingly deployed on the

battlefield, supporting a shift in demand for artillery towards longer-range

systems.

Ballistic missile capabilities expand to longer ranges to support sovereign

frameworks, while cruise missile capacity is increasing towards cheaper

alternatives.

Air-defence architectures are becoming increasingly layered, with counter-UAS a

key industry focus and long-range becoming a local priority amid reduced US

support.

Our view: despite accelerating partnerships, system duplication remains evident

as countries prioritise sovereignty - follow Defence budgets to capture

momentum.

What's the Edge in this Report? We met 12 defence companies at