Europe’s largest shipbuilder, Fincantieri, has called on the European Union to urgently strengthen its underwater defence systems in the face of increasing threats to subsea infrastructure and a reduced U.S. military footprint in the region. In an exclusive interview with the Financial Times, CEO Pierroberto Folgiero emphasized the need for Europe to assume greater responsibility for safeguarding critical maritime assets such as underwater cables and pipelines.
“The Mediterranean has always been populated by Russian and U.S. submarines. It’s up to us Europeans now to take responsibility for our underwater defence,” Folgiero told the FT. “If European countries are going to spend more on defence, we should spend better.”
Fincantieri, which is state-controlled by Italy, has significantly expanded its investment in underwater technology. The company expects its underwater division—focusing on submarines, autonomous underwater vehicles, and marine communication systems—to double in size within two years, reaching €820 million in annual revenue by 2027. That would represent 8% of the group’s current revenue.
The push comes amid heightened concern over the vulnerability of subsea infrastructure following the sabotage of the Nord Stream gas pipeline in 2022. That incident triggered a wave of European investment in underwater surveillance, drone systems, and anti-submarine capabilities. Folgiero noted that while attention has centered on the Baltic, the Mediterranean Sea—twice its size—plays a far more strategic geopolitical role.
“This is why we are betting on underwater defence and technology and increasing our industrial capabilities,” Folgiero said.
The Financial Times reports that Fincantieri’s bullish outlook and expansion plans have been well-received by investors. The company’s share price surged nearly 20% last week after it announced a partnership with Italian tech firm Graal Tech to develop autonomous underwater vehicles.
Analysts are also taking note. “Underwater is one of the key medium-to-long-term catalysts for Fincantieri’s equity story,” said Antonio Gianfrancesco of Intermonte.
Fincantieri has been on a steady growth trajectory since the pandemic. In Q1 2025 alone, the company’s earnings rose 35% to €2.37 billion. Its order backlog hit a record €57.6 billion—seven times its projected revenue for the year—underscoring strong global demand for both its military and civilian shipbuilding services.
In 2023, Fincantieri acquired Remazel, a specialist in offshore equipment, and also struck a €415 million deal with Leonardo to absorb the WASS submarine division, deepening its footprint in underwater defence.
Despite a failed 2020 merger with France’s Chantiers de l’Atlantique due to EU regulatory opposition, Fincantieri has successfully expanded its global reach, including key shipyards in the United States.
With geopolitical tensions simmering and Europe facing an evolving underwater threat landscape, Fincantieri’s message is clear: the time for the EU to act—and invest smartly in maritime security—is now.
