European Defense Companies Set to Continue to Benefit From Robust Orders — Sector Preview

• European defense companies are benefiting from increased defense spending after Russia’s invasion of Ukraine
• Order intake for defense contractors is growing, leading to strong top-line growth
• Germany’s Rheinmetall has the largest order pipeline in Europe
• BAE Systems and Saab have upgraded their annual sales guidance
• Other companies in the industry may also update their forecasts in the coming weeks
• Upcoming earnings reports: Saab (Oct. 26), Thales (Oct. 31), Rheinmetall and Leonardo (Nov. 9), BAE Systems (Nov. 13)

European defense companies are set to benefit from robust orders as governments increase defense spending in response to Russia’s invasion of Ukraine. Order intake for defense contractors is growing, with Germany’s Rheinmetall having the largest order pipeline in Europe. BAE Systems and Saab have already upgraded their annual sales guidance, and other companies in the industry may follow suit. Analysts expect strong top-line growth for defense companies in the medium term. Upcoming earnings reports include Saab on Oct. 26, Thales on Oct. 31, Rheinmetall and Leonardo on Nov. 9, and BAE Systems on Nov. 13.