Sweden doubles procurement as backlog hits 480 billion SEK

Sweden has doubled its defence procurement spending over two years.

According to the Swedish Armed Forces’ annual report, Försvarsmakten spent more than sixty billion SEK (5.6 billion euro) on military equipment in 2025, roughly double the level recorded in 2023.

The report, published on Monday, states that the 2025 output was slightly below the investment plan. This was primarily because supplementary budgets added funding to replace materiel donated to Ukraine without adjusting the baseline plan, the report notes.

The largest spending categories were air materiel at 18.8 billion SEK, land materiel at 18.6 billion SEK and naval materiel at 10.3 billion SEK.

480 billion

By the end of 2025, the Swedish Armed Forces and the Swedish Defence Materiel Administration (FMV) had outstanding orders with other authorities and industry totalling nearly 480 billion SEK, corresponding to almost 45 billion euro. 

This represented an increase of 132 billion SEK compared with the previous year.

While the 60.6 billion SEK figure reflects procurement activity during 2025, the 480 billion SEK total represents the cumulative value of all active contracts with industry and other authorities that remain to be fulfilled.

Major systems delivered during 2025 included the Patriot air defence system, the first JAS 39 Gripen E fighter aircraft and upgraded Archer artillery systems.

The navy received the modified submarine HMS Halland and the diving support vessel HMS Sturkö. 

A contract for the new Blekinge-class submarines was renegotiated during the year, with an expanded budget and revised delivery schedule.

For the land forces, deliveries included SK40 trainer aircraft, mortar-equipped armoured personnel carriers and specialist vehicles for airbase maintenance.

To increase speed and flexibility, the Swedish Armed Forces introduced new procurement mechanisms in 2025.

These include "opportunity purchases" (Läglighetsköp). Two new budget lines were used to reduce procedural delays, enabling orders to improve JAS 39 Gripen availability and to accelerate the procurement of counter-unmanned aerial systems.

Innovation hub

In addition, a new development hub for short-term projects of up to one year was established.

Its purpose is to enable faster development of military capability through simplified and more flexible processes. Unlike major defence programmes that span decades, the hub focuses on urgent requirements with project timelines of up to one year.