Business · Markets · 2 hrs ago
European defence stocks fall 15% to 20% over six months
Shares in major European defence companies fell 15% to 20% over six months.
The companies include Britain’s BAE Systems, France’s Thales and Dassault Aviation, and Italy’s Leonardo.
The fall came despite heightened geopolitical tensions and positive long-term growth expectations for the defence industry.
Government budget pressures and delayed weapons orders are limiting how quickly companies can win business and grow earnings.
Uncertainty about changes in military technology is also weighing on investors.
The decline has shaken market expectations that higher defence spending will boost the sector.
The article gives no specific next steps or timeline for a recovery.
Shares of major European defence companies fell 15% to 20% over the six months covered by the reports.
Germany’s Rheinmetall fell more sharply, dropping more than 33% over the same period, according to Expansión.
The reports attribute the declines to government budget pressures, slow procurement and uncertainty about how warfare technology is changing.
Analysts expect defence companies’ profits to grow by an average of 17% a year from 2025 to 2030, according to estimates cited by Expansión.
- Who
- European defence companies, including BAE Systems, Thales, Dassault Aviation and Leonardo.
- What
- Their shares fell 15% to 20% over six months; Rheinmetall fell more than 33%, according to Expansión.
- When
- Over the six months before the articles were published on 14 October 2026.
- Where
- Europe.
- Why
- Budget pressures, delays in procurement and uncertainty about changing military technology have constrained investor confidence.
This story does not have two clearly opposing sides.
Shares of BAE Systems, Thales, Dassault Aviation and Leonardo fell 15% to 20%.
The German government cancelled a shipbuilding programme expected to be awarded to Rheinmetall.
Rheinmetall shares rose more than twentyfold.
Rheinmetall shares fell 50%.
- Major European defence shares
- Down 15% to 20% over six months
- Rheinmetall
- Down more than 33% over six months, according to Expansión
- Forecast profit growth
- Average 17% annually from 2025 to 2030
- German shipbuilding programme
- Cancelled in June
- Rheinmetall shares
- Rose more than twentyfold between 2022 and October 2025