New World Invesment Research

Since February 2022, share prices of major defense manufacturers have diverged significantly. European and Asian producers such as Rheinmetall, Hanwha Aerospace, Mitsubishi Heavy, and Leonardo show much larger cumulative gains over the five-year period, while US defense contractors like Lockheed Martin, Northrop Grumman, General Dynamics, and RTX display comparatively lower but steadier returns. The data indicate that most of the relative outperformance occurred after 2022, with price acceleration continuing into 2024–2025.

Geopolitical uncertainty and an increasing number of conflicts globally will provide tailwinds for the world’s defense industry while supporting demand for precious metals needed in the manufacturing of weapons.

#defence