DefenseThe UK government is expected to approve a £1 billion contract for 23 Leonardo AW149 helicopters under the New Medium Helicopter (NMH) program, with a formal announcement anticipated in the coming days.
Industry sources indicate that Leonardo Helicopters has been selected as the sole remaining bidder for the requirement, with the aircraft to be assembled at the company’s Yeovil facility in southwest England.
The contract had faced uncertainty in recent days amid reports of delays in final Treasury sign-off, as the deadline for the manufacturer’s best and final offer approached.
The AW149 is a medium-lift, multi-role helicopter designed for troop transport, special operations, and utility missions. The NMH programme aims to replace several legacy rotorcraft types currently in UK service with a single platform, simplifying logistics and support.

Leonardo’s Yeovil site, the UK’s only remaining dedicated military helicopter manufacturing facility, employs around 3,000 workers and supports thousands more jobs across the supply chain. Company executives had previously warned that failure to secure the NMH contract could force a reassessment of the plant’s long-term future.
Beyond the UK order, Leonardo has identified export opportunities for the AW149 and has indicated that additional aircraft for international customers could also be produced at Yeovil.
The contract award follows months of delay as the government reviewed defense spending priorities. Prime Minister Sir Keir Starmer has pledged to increase defence expenditure in response to evolving security challenges, and the helicopter order is expected to form part of a wider defence investment plan.