European Defense Stocks Rise Following Trump’s Statements

European defense companies significantly increased the value of their shares following the bold statements made by U.S. President Donald Trump regarding Europe.

This rise in shares was recorded on European stock markets.

The largest growth among European companies was demonstrated by the German Rheinmetall, whose shares have increased by 87% since the beginning of the year. Over the past three years, since the start of the war in Ukraine, the company’s share value has risen by more than 800%, with a growth of about 60% in just February-March 2025.

Meanwhile, other defense companies are also showing significant growth. French Thales saw an increase of 59% since the beginning of the year, with its shares rising by 22.66% in just one month. British BAE Systems added 14% in one month and 10.17% overall in 2025, while Italian Leonardo grew by 71%.

A significant increase has also been recorded among smaller defense companies. In particular, the German companies Hensoldt and Renk showed an impressive growth of 93% each, while Iveco rose by 72%. The Goldman Sachs Defense Stocks Index in Europe increased by 16% in just a few days in early March, reaching a new historical high, with an annual growth of 63%.

In addition to Trump’s statements regarding the potential reduction of the U.S. role in Europe’s defense, the catalyst for this rise in stocks was the European leaders’ summit in London on March 2, 2025, during which politicians announced their intention to significantly increase defense spending.

EU countries are expected to invest between €500 and €700 billion in rearmament over the coming years. This amount, according to some European politicians, may even increase if the war in Ukraine ends in 2025, as the need to modernize armies will remain relevant due to global political tensions.

It is worth noting that while European stocks are rising, American stocks have fallen significantly over the past month. For example, Lockheed Martin’s shares fell by 16.41%, Northrop Grumman’s by 13%, General Dynamics’ by 10.93%, and Raytheon Technologies’ by 2.66%.

This drop is primarily due to U.S. President Donald Trump’s announcement that he would cut the military budget and possibly curtail most defense programs in the future to reduce costs.

Militarnyi previously reported that Rheinmetall is repurposing two of its automotive plants in Germany to produce ammunition and other defense products.

Europe’s largest arms manufacturer is reorganizing its facilities in Berlin and Neuss, which produce automotive parts, to meet defense needs.

According to the plans, both plants will be transferred to the ammunition production division. The company said that these facilities will not perform operations with explosives but will produce mechanical components.