Europe’s largest defence groups set to return $5bn to shareholders in 2025
Sector increases investment and rewards investors after surge in global military spending following Ukraine war
Sector increases investment and rewards investors after surge in global military spending following Ukraine war

Trend reverses prior hesitance over arms investments because of slow growth and perceived conflict with ESG standards

Fund’s research tempers claims by European governments that bigger military budgets should revitalise their economies

Russia’s war in Ukraine and fears over US security relationship drive wave of VC funding

The growth profile for the sector has brightened as Europe’s governments prepare to spend more on protection

Industry executives say key aim is to secure European funding as well as contracts with governments

Stoxx Europe aerospace and defence index has more than tripled since 2022, with more than half of that rise coming this year