Aerospace and Defence Update: Eurosatory preview

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Aerospace and Defence Update: Eurosatory preview

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Aerospace and Defence Update

Eurosatory preview

Industry Overview

Eurosatory preview – defence at a turning point? 15 June 2026

On the 16th & 17th of June we will be at Eurosatory in Paris hosting investor meetings Equity

with SAAB, Elbit Systems (covered by US Aerospace and Defence Analyst Ron Epstein), Global

Thales, EDGE Group (not covered), Leonardo, Theon (not covered), Rheinmetall, Exosens Aerospace

(not covered), Hensoldt, BAE Systems, Aselsan (not covered), Renk, Kongsberg and Benjamin Heelan >>

Electro Optic Systems (not covered). We expect discussions to focus on the latest Research Analyst

implications of the Ukraine and Middle East conflicts, and the need to ramp European Merrill+44 20Lynch7996 (DIFC)5723

industrial capacity faster, particularly given the US posture towards the continent. On benjamin.heelan@bofa.com

capabilities, air defence, precision strike missiles, maritime assets, autonomous systems David Holmes, CFA >>

Research Analyst

and electronic warfare are clearly the current focus, with multi-domain superiority (and MLI (UK)

space as key enabler) also in view. EU defence is now trading on c12x EV/EBIT on 2028 +44 20 7995 1077

david.a.holmes@bofa.com

BofA estimates, having de-rated from >14x in early April. We highlight Rheinmetall (c11x

Lorenzo Di Patrizi >>

2028 EV/EBIT), Leonardo (c10.3x 2028 EV/EBIT) and Indra (c8.3x EV/EBIT), all Buy-rated, Research Analyst

on below average valuation and strong positions in the current environment. MLI (UK) +44 20 7995 7626

lorenzo.dipatrizi@bofa.com

US pullback and European capability gap under focus

Recent news has reported that the US plans major cuts to fighters and warships for

NATO operations in Europe.