A new class of European billionaires has emerged from the continent’s defence sector, propelled by a rearmament boom that shows little sign of slowing. Their wealth now extends well beyond weapons manufacturing.
For years, defence ranked among Europe’s least attractive industries. Investors avoided it, politicians found it awkward, and growth remained sluggish. Russia’s invasion of Ukraine changed that calculus. NATO’s push toward 5% GDP military spending, combined with a less predictable Washington, has flooded the sector with capital.
Michal Strnad exemplifies the shift. The 34-year-old took over Czechoslovak Group from his father in 2018 and transformed it into a European ammunition powerhouse. CSG’s Amsterdam listing in January marked the largest pure defence flotation ever, valuing Strnad’s stake at €2.55 billion. His estimated $18 billion fortune makes him the richest person in the Czech Republic. His spending now reaches beyond arms: a 14% personal stake in Pirelli, followed by a €30 billion offer for Delfin, the family holding company behind Ray-Ban.
Meanwhile, a parallel boom in defence technology has minted fortunes among start-up founders. Germany’s Helsing, an AI defence firm, hit an $18 billion valuation this summer. Finland’s ICEYE, a radar satellite operator, surpassed €10 billion. German drone maker Quantum Systems reached roughly $8 billion, Portugal’s Tekever $6.4 billion, and Britain’s Cambridge Aerospace $3.4 billion. Europe now hosts roughly a dozen defence unicorns.
Established dynasties have benefited as well. Rheinmetall shares have multiplied since 2022. The Wallenberg family remains Saab’s largest shareholder through Investor AB. Turkey’s Bayraktar family, whose drones gained fame in Ukraine, expanded into Europe by purchasing Italy’s Piaggio Aerospace.
The underlying engine remains public money. European governments have pledged higher defence spending, backed by new EU lending facilities and a €90 billion Ukraine commitment. Ammunition, drone, and air defence order books stretch years into the future.
As a result, political scrutiny grows. Strnad’s Delfin bid would grant influence over Generali, UniCredit, and Monte dei Paschi, sparking Italian fears about foreign control. Nationalist parties across Europe, from Germany’s AfD to France’s National Rally, promise to curb military spending. A peace deal could cool the boom.
Europe’s new arms barons now face a reckoning: how much of the economy will governments permit them to own.
