LESZEK SZYMANSKI (EFE)
The market value of the main military equipment manufacturers in the United States and Europe has surged in the past two and a half years due to conflicts in Ukraine and Gaza. A study by Accuracy reveals that stock market capitalization of these manufacturers has soared by 59.7% since the Ukraine invasion in February 2022, outpacing general market indexes. The U.S. firms include Honeywell, Lockheed Martin, and Northrop Grumman, while European companies like Safran and Leonardo are also benefiting.
The rise in share prices intensified during Israel’s Gaza offensive, signaling investor confidence in future profits. Despite robust stock performance, actual industry profitability has remained stable. Companies like Honeywell and Rheinmetall saw significant share price and sales growth, reflecting a positive outlook for the defense sector.
The arms industry’s future looks promising, with increased military spending globally. Investors are eyeing sustained growth, with companies well-positioned to capitalize on geopolitical tensions.