Industry Overview - The European defense industry is experiencing a significant upward trend due to geopolitical tensions, particularly the ongoing conflict in Ukraine, which has shifted European countries' perspectives on military capabilities [2][4]. - NATO members are increasing their defense spending commitments, with some countries aiming for up to 5% of GDP, driven by the urgency of the Ukraine war [3][4]. Company Analysis Rheinmetall - Rheinmetall, based in Germany, has seen its stock value increase over 12 times since the onset of the Ukraine conflict, with projected annual sales growth exceeding 30% and earnings growth around 50% for the next few years [6][8]. - The company has a market capitalization of $84 billion and is the largest defense firm in Europe, benefiting from increased public spending in Germany and rising NATO spending targets [8][9]. - Despite a high forward price-to-earnings ratio of 39, which is above the European defense average of 28, the stock is trading 24% below its yearly highs, indicating potential for further growth [9]. Kongsberg Gruppen - Kongsberg, Norway's national defense champion, is projected to achieve mid-teens sales growth in the coming years, driven by its involvement in drones, missile projects, and air defense systems [10][12]. - The company plans to spin off its slower-growing maritime business in April 2026, positioning itself for more than 20% annual growth as a pure play [12]. - Kongsberg has a market cap of $22 billion and a forward P/E ratio of 28, aligning with the industry average, suggesting room for growth from its smaller base [13]. BAE Systems - BAE Systems, one of the largest defense firms in the UK, is expected to see annual sales growth of around 7% over the next two years, which is slower compared to other firms [14]. - Nearly half of BAE's sales come from contracts with the U.S. Department of Defense, providing stability and a strong hedge against market fluctuations [15]. - The company has a more reasonable forward P/E ratio of 21, indicating a solid valuation relative to its growth prospects [14].

Government & Defense - US Navy to add a new type of battleship to its fleet [1] - The new battleship class is designated as "Trump class" [1]

President Donald Trump announced the US Navy will build a two new types of warship, including one named after himself, as part of the White House push to modernize the service’s surface fleet https://t.co/Qeq1h4mkiy ...

CHANTILLY, Va., Dec. 22, 2025 (GLOBE NEWSWIRE) -- Parsons Corporation (NYSE: PSN) is pleased to announce it was awarded a contract for the Missile Defense Agency (MDA) Scalable Homeland Innovative Enterprise Layered Defense (SHIELD) indefinite-delivery/indefinite-quantity (IDIQ) contract with a ceiling of $151B. This contract encompasses a broad range of work areas that allows for the rapid delivery of innovative capabilities to the warfighter with increased speed and agility. About Parsons: Parsons (NYSE: ...

In industry, women manage the infrastructure governments rely on but cannot run themselves. SpaceX’s Gwynne Shotwell (No. 20) keeps the systems behind defense and global connectivity functioning. #PowerWomen https://t.co/sTf06505ydIllustration: Oriana Fenwick for Forbes https://t.co/jpBaSaXQao ...

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) is one of the best aerospace and defense stocks to buy according to Wall Street analysts. On December 11, analysts at Truist Securities reiterated a Buy rating and a $125 price target. Kratos Defense & Security Solutions, Inc. (KTOS) Expands in Canada in Pursuit of PT6A and PT6T Engine Overhaul Opportunities Everett Historical / shutterstock.com The positive stance follows the company’s opening of a new 10,000-square-foot facility in Vancouver, Bri ...

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) is one of the best aerospace and defense stocks to buy according to Wall Street analysts. On December 11, analysts at Truist Securities reiterated a Buy rating and a $125 price target. Kratos Defense & Security Solutions, Inc. (KTOS) Expands in Canada in Pursuit of PT6A and PT6T Engine Overhaul Opportunities Everett Historical / shutterstock.com The positive stance follows the company’s opening of a new 10,000-square-foot facility in Vancouver, Bri ...

L3Harris Technologies wins $843 million contract to build satellites that would bolster a missile tracking layer above Earth, a key element of Trump’s Golden Dome defense shield https://t.co/0FQf9BzWw1 ...

Group 1 - Parsons Corporation is a significant player in the defense and infrastructure sectors, providing technology-driven solutions to the U.S. government and other clients globally [1] - Barclays has set a price target of $70 for Parsons, indicating a potential upside of 15.61% from its current trading price of $60.55 [1][5] - The company recently secured a $100 million contract to enhance the U.S. defense industrial base's munitions production, highlighting its strategic importance to national defense [2][5] Group 2 - The stock's trading range for the day has been between $60 and $61.25, indicating some volatility [3][5] - Over the past year, Parsons' stock has experienced a high of $97.91 and a low of $54.56, reflecting market responses to its business activities and broader economic conditions [3][5] - Parsons has a market capitalization of approximately $6.46 billion, indicating its significant presence in the industry [4]

Warren Kanders’ Cadre, which makes body armor and bomb suits, has gotten a boost from Trump’s defense spending and Europe’s race to rearmament. Now it’s preparing for the war on nuclear cleanup. https://t.co/lZI3eRlQwrIllustration: Macy Sinreich for Forbes; Photos: Roy Rochlin, Spencer Platt via Getty Images; Vasiliki ...