Germany has approved the purchase of 20 additional Airbus H145M light utility helicopters in a deal worth nearly €1 billion ($1.2 billion), as part of its broader effort to accelerate military modernization amid rising security challenges in Europe.

According to a finance ministry document set to be presented to parliament, the new order, first reported by Bloomberg and confirmed by Reuters, extends Germany’s existing 2023 framework agreement with Airbus, which allows for up to 82 helicopters to be procured. With this latest purchase, 62 aircraft have now been ordered, completing the framework in full.

The Airbus H145M is a versatile, twin-engine, multi-role helicopter used across NATO forces for transport, reconnaissance, and special operations missions. Under the latest procurement, 15 aircraft will be configured for combat operations and five for special forces training. Deliveries are scheduled to take place over two years beginning in 2027.

The order will be financed through Germany’s special defense modernization fund, the €100 billion package created after Russia’s 2022 invasion of Ukraine to rebuild and upgrade the Bundeswehr’s aging capabilities. The fund has already supported major acquisitions in air defense, heavy armor, and digital communications systems. Germany’s defense ministry declined to comment on the H145M order, citing parliamentary review procedures.

The contract is expected to benefit several European defense suppliers, most notably Hensoldt (HAGG.DE), which will provide electronic warfare and night-vision systems for the new aircraft. Other subcontractors in avionics, communications, and mission equipment are also expected to see related workshare. The government estimates that maintaining and operating the entire fleet of 82 helicopters will cost approximately €3 billion through 2048, highlighting the long-term commitment behind Berlin’s modernization effort.

The deal reflects a wider surge in defense spending across Europe. Since 2022, NATO allies have increased procurement budgets and accelerated delivery timelines for both manned and unmanned platforms, citing the need to bolster readiness and interoperability in the face of ongoing Russian aggression. The H145M’s combination of mobility, modularity, and low operating costs has made it a preferred platform not only for Germany but also for Hungary, Serbia, and Luxembourg, all of which have adopted variants tailored for special operations and homeland security missions.