Portugal’s exports of military-purpose materials have seen a significant increase in recent years, rising 77% in nominal terms between 2022 and 2025, according to data released by the Banco de Portugal. While still representing a relatively small portion – less than 1% – of the nation’s total exports, the sector’s growth has outpaced overall export trends, particularly since the start of the war in Ukraine.
The central bank revealed on Wednesday, March 19, 2026, that classifying goods with broader military applications, including some from the automotive, clothing, and footwear sectors, could more than double the current estimated figure. Yet, accurately assessing the value of military material exports remains challenging.
“This proves very difficult to determine the values traded corresponding to military material with precision,” the Banco de Portugal stated in its March bulletin. “In many cases, its use is dual, meaning that goods classified under the same detailed nomenclature of international trade can have military or civilian applications.”
Further complicating analysis are stringent international regulations surrounding embargoes and sanctions, which often require national authority approvals, as well as irregular ordering patterns, particularly for imports.
Drones Account for 21% of Military Exports
The Banco de Portugal categorizes military-use products into five groups, with firearms and their components comprising the largest share at 46.3%. Personal protective equipment accounts for approximately one-third of the total, at 29.8%.
A notable trend highlighted by the bank is the rapid growth in exports of unmanned aircraft. These were virtually non-existent in 2021, but climbed to 7.5% of military-purpose exports in 2023, 18.1% in 2024, and 21.3% in 2025.
In 2024 alone, Portugal exported €87.3 million in drones to Ukraine, a 164.5% increase from the €33 million exported the previous year. These shipments to Kyiv surpassed all sales to Russia for the first time, according to reporting from Jornal Económico.
Other categories include armored vehicles and ships, and ammunition, though these represent a smaller portion of the total. The bank notes that its classification excludes other goods with potential military use, such as textiles and footwear that could be used for military uniforms, and may too include items without such applications.
The United States is the primary destination for these exports, accounting for an average of 40.5% of the total between 2021 and 2025. Belgium and France follow, with average shares around 14% during the same period, and Spain at 6.8%. Despite increased drone exports to Ukraine, the country still represented 5.1% of total exports over the four-year period, though its share rose to nearly 12% in 2025.
The number of companies exporting these materials has also increased in recent years, following a decline between 2015 and 2016. Approximately one-third of these exporters have more than 10% foreign capital ownership. The vast majority – over 90% – maintain consistent production and ship to the same destinations, but the bank also reports increased sales to novel markets and of new products since the start of the war in Ukraine.
While these products are not dominant in the export portfolios of most identified companies, they have gained importance in the total value of exports in the most recent period. The development underscores Portugal’s growing role in supplying military-related goods amid heightened geopolitical tensions.
