The Slovak defense industry has been thriving for several years in a row. The war in Ukraine and rising defense spending by European countries remain the primary drivers of growth in arms production, not only in Slovakia but throughout Europe. This reality is also reflected in the latest data from the Institute of Financial Policy (IFP) of the Ministry of Finance of the Slovak Republic regarding arms and ammunition exports and the financial performance of Slovak defense companies.

In 2025, exports of military equipment from Slovakia reached 2.54 billion euros. Looking at data from 2022, when Russia attacked Ukraine, exports of military equipment at that time totaled 437 million euros, representing an almost sixfold increase over the course of three years. As the IFP notes, a significant portion of the export value does not come from products of the Slovak defense industry, but rather from the re-export of military equipment from abroad. Nevertheless, despite this observation, the Slovak defense industry is a sector that is expected to continue growing in the future.

Large-Caliber Ammunition Production Dominates Slovakia’s Defense Industry

As IFP data further shows, the driving force behind the Slovak defense industry is companies that manufacture large-caliber ammunition and military vehicles. In the field of ammunition production, Slovakia ranks among the European leaders, thanks in particular to its manufacturing, development, and modernization capabilities, which enable Slovak ammunition manufacturers to cover the entire ammunition life cycle. Key companies in the ammunition manufacturing sector include ZVS Holding and VOP Nováky, and both companies recorded an increase in revenue in 2025. According to data from public sources, revenue at the semi-state-owned company ZVS Holding nearly doubled from 119.3 million euros to 230.96 million euros, while VOP Nováky saw its revenue rise last year from 259.8 million euros to 388.5 million euros. Both companies are investing in the development of their production capacities and technological infrastructure, thereby continuing to expand ammunition production in Slovakia.

Companies in the military vehicle segment also saw growth. For example, CSM Industry – which, in addition to engineering production, focuses on manufacturing UDS universal finishing machines for military use and partners with the Finnish company Patria in the production of Patria AMV 8x8 XP armored personnel carriers for the Slovak Armed Forces – reported revenue of 11.75 million euros for last year. The state-owned company Konštrukta-Defence also grew, generating revenue of 64.88 million euros. According to available data, however, the sale of its own assets contributed significantly to Konštrukta-Defence’s favorable financial results.

Could Joint Procurement of Ammunition and New Tanks Drive Further Growth?

According to various forecasts and analyses, the Slovak defense industry is expected to continue growing in the coming years. Further modernization and armament projects – both within the Armed Forces of the Slovak Republic and through international cooperation – will reveal what this growth might look like in concrete terms. Two specific projects are currently the subject of intense public debate.

The first project is the joint acquisition of large-caliber tank ammunition and medium-caliber cannon ammunition. Last year, the Slovak Ministry of Defense signed a framework agreement with ZVS Holding for the purchase of ammunition worth up to 58 billion euros over a seven-year period. So far, however, the only country to join Slovakia in this effort is Croatia. Slovak Defense Minister Robert Kaliňák stated that there are several countries that might be interested in purchasing the ammunition, including the Czech Republic. In this case, however, it remains to be seen whether the Czech Republic will ultimately join the initiative, as the Office for the Protection of Competition has prohibited the Czech Ministry of Defense from joining this initiative directly without a competitive bidding process.

The second project that has been the subject of discussion in recent weeks is the purchase of up to 104 medium tanks. Since the cost of acquiring main battle tanks is high, the Slovak Ministry of Defense is looking for ways to equip its tank forces with modern systems. Based on available information, discussions are primarily focused on the CV90120 medium tank and the new CFL-120 Karpat, which the public was able to see at this year’s IDEB trade fair in Bratislava.

Both BAE Systems, the manufacturer of the CV90120, and CSG and the Turkish company FNSS – which are jointly offering the CFL-120 Karpat platform – have stated that the vehicles will be manufactured in Slovakia and, respectively, the Czech Republic and Slovakia. A decision on whether the Slovak Ministry of Defense will procure one of these tanks or find another solution is expected to be made no later than next year.