Leonardo set to receive U.K. New Medium Helicopter contract: Reports

The U.K. government is set to award Leonardo a contract worth up to £1 billion to build 23 AW149s for the country’s New Medium Helicopter program, according to multiple reports.

Leonardo was the sole remaining bidder for the program, which would see the aircraft replace the Royal Air Force’s fleet of 23 aging Airbus Puma HC2s.

It would also take on roles performed by other helicopters in the U.K.’s medium-lift fleet, including Agusta-Bell AB412s, AB212s, and Airbus AS365 N3 Dauphins.

The decision was reported Friday, two days before a March 1 deadline. It’s expected Leonardo will manufacture the aircraft at its plant in Yeovil, southwest England, which the company had previously threatened to close, according to reports.

Yeovil has about 3,000 employees and is the only end-to-end helicopter manufacturing site in the U.K.  

It launched in 1915, initially making fixed-wing aircraft for the First World War under Westland, before transitioning to helicopter manufacturing in the 1950s.  

Another 9,000 supply chain jobs are tied to the factory, per Reuters. The site has recently produced Merlin AW101 and Wildcat AW159 helicopters for the U.K. military

Officially launched in 2022, the New Medium Helicopter program attracted bids from Airbus Helicopters — offering its H175M — and Lockheed Martin, which offered the S-70M Black Hawk.

Airbus and Lockheed withdrew from the running in 2024, citing an inability to meet the bid requirements in current market conditions.

A decision on the contract was due in autumn 2025 but was delayed, prompting media speculation about budget concerns. The reported 23-aircraft order is down from the government’s initial requirement for up to 44 helicopters.