Bankinter | Spanish construction companies have managed to enter military investment programmes with projects valued at around €25 billion in the last three years and are aiming for new contracts, according to Expansión.
The forecast is that spending on military infrastructure will grow annually to reach €130 billion in 2035. The main projects at the moment are focused on the renovation and expansion of shipyards, naval bases and other military facilities.
Bankinter analysis team’s view: This is good news for the sector, which offers growth potential for the future, in an environment of falling interest rates. It therefore reinforces our recommendation to buy in the sector, which we include among our sector preferences in the 4Q 2025 Quarterly Strategy. Within the sector, we highlight Spanish companies such as ACS, Ferrovial, Cellnex and Sacyr, and European companies such as Vinci, Eiffage and Heidelberg Materials. The latter two are focused primarily on Germany’s infrastructure plan (€500 billion over 12 years).
