European Defense Industry Booms: Hensoldt & Renk Hit Record Highs
The European defense industry is flourishing, with Hensoldt and Renk leading the way. Both companies have reached new record highs in the MDAX, contributing to the European Defence Index's historical peaks. This surge in demand is driven by the tense security situation in Europe and increased investments in the sector.
Hensoldt, in which the federal government holds a blocking minority of around 25 percent, is expanding its production capabilities. The company is investing in a mid-double-digit million-euro facility in Ulm, aiming to produce around 1,000 radars annually from 2027. These radars, used in the Ukraine conflict and installed in Eurofighter jets, will focus on air and drone defense.
Renk Group, another strong performer, is also expanding its production. The company aims to increase its annual gear production capacity from a few hundred to over a thousand gears. The identity of the majority stakeholder in Boersenmedien AG, who has acquired positions in Renk shares, remains unclear.
The demand for defense stocks remains high due to the ongoing geopolitical tensions. Hensoldt and Renk's expansion plans and strong performance indicate a positive outlook for the European defense industry. Despite the lack of clarity on the majority stakeholder's identity, investors continue to show interest in Renk shares.
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