$GE (-1,7 %) Big short opportunity after plane crash? They built the engines of the ill-fated plane. If the engines were the cause, things are likely to go downhill. We India had probably opted for the GE engines and not for those from $RR. (-1,99 %) In $RR. (-1,99 %) But I am already invested long. They are also falling today because airlines are probably allowed to decide which Boeing engines can be used for the Dreamliner. According to the article below, however, Air India has chosen the $GE (-1,7 %) chosen

https://www.geaerospace.com/news/press-releases/commercial-engines/air-india-signs-agreement-become-genx-service-provider#:~:text=The%20GEnx%2D1B%20engine%20will,for%20more%20than%20four%20decades.

hello everyone, I wanted to take the opportunity of the European oar to make some money, I have about €200 I can invest, but I am undecided between these three stocks $RR. (-1,99 %)
$BA. (-0,39 %)
$DEZ (-2,98 %)

what do you guys recommend?

$IE0002Y8CX98 (-1,59 %) - WisdomTree Europe Defense UCITS ETF - EUR Acc

TOP 10

$RHM (-1,56 %)

$LDO (-1,81 %)

$SAAB B (-2,35 %)

$BA. (-0,39 %)

$HO (-0,86 %)

$RR. (-1,99 %)

$AIR (+0,65 %)

$SAF (-1,46 %)

$KOG (-2,72 %)

$MRO (+3,53 %)

https://api.fundinfo.com/document/b9034489473e1a780e6657260ca4fb58_248438/MR_DE_de_IE0002Y8CX98_RES_2025-03-07.pdf

"The index was developed by WisdomTree, Inc. ("WT"). The selection of European

companies in the index is based on their share of sales from the defense sector. The Index also seeks to exclude companies associated with weapons that are banned under international law, such as cluster munitions, anti-personnel mines, and biological and chemical weapons. The index also seeks to exclude companies that violate certain generally accepted international norms and standards, such as the principles of the United Nations Global Compact.

At least 20 stocks that meet the revenue share criteria as well as additional minimum requirements regarding market capitalization and liquidity are selected for inclusion. The selected companies in the index are weighted according to free float-adjusted market capitalization - adjusted by the exposure score - while complying with the upper limits and criteria defined in the index methodology.

The index is rebalanced every six months."

#wisdomtree
#europe
#defense
#etf
#defenseetf
#rheinmetall
#leonardo
#saab
#baesystems
#thales

Anyone who considers SMR an important topic can now look forward to the latest insights from the NuScale ($SMR ) analyst conference. The conference on the fourth quarter and full year 2024 provided exciting insights into the company's progress and future plans.

John Hopkins, President and CEO, began with a review of the year 2024, which was characterized by significant progress in the commercialization of the Small Modular Reactor (SMR) technology. was characterized. Particular emphasis was placed on the improved financial situation of the company.

An important point was the RoPower project in Romania, in which NuScale installed a 6-module SMR plant with an installed capacity of 462 megawatts on the site of a decommissioned coal-fired power plant in Doicesti. NuScale is thus actively supporting the Romania's energy security and decarbonization initiatives. The FEED phase 2 (Front-End Engineering and Design) under the management of Fluor is generating significant revenue and cash flow for NuScale.

Hopkins emphasized that NuScale is the only near-term SMR on the market. on the market. While other announced SMR projects in the US are focused on demonstration plants that can only receive approval from the US Nuclear Regulatory Commission for commercial operation after several years of operation, NuScale has already invested over 2 billion US dollars in the development and licensing of its technology. licensing of its technology and has received design certification from the NRC design certification.

Another important step is the technical review of the improved FDA application to the NRC to increase the increase the electrical output per module from 50 to 77 megawatts. The decision on this is expected by mid-2025. This step is intended to broader range of customers and increase the economic efficiency increase economic efficiency.

In the area of manufacturing, Hopkins announced that the strategic partner Doosan Enerbility continues to make progress in the production of the first six NuScale power modules. In addition, based on discussions with customers about 12-module configurations
preproduction materials for six additional modules ordered. This means that there are now twelve modules in productionwhich underlines the confidence in the customer pipeline and the commitment to delivery by 2030.

The increasing demand for energyespecially due to the reshoring trend in manufacturing, the electrification of industries and the need for data centers for artificial intelligence (AI)was identified as a key growth driver. Hopkins referred to a report by the US Department of Energy, according to which the energy consumption of data centers could triple in the next three years and could account for up to 12% of national electricity consumption by 2028.

Given the fact that power capacity additions in the US are mainly based on intermittent sources and short-term battery storage, NuScale storage, NuScale sees a massive opportunity to provide clean baseload energy. The world's largest technology companies are driving this demand. Meta is planning up to 4 gigawatts of new nuclear energy for its AI and sustainability goals.

Hopkins also mentioned the ongoing innovations in the field of hydrogen production. A white paper release from Dr. Jose Reyes, NuScale's Chief Technology Officer and co-founder, highlighted how NuScale is benefiting from tax credits for the production of clean hydrogen production.

Hopkins concluded by emphasizing the support for advanced nuclear energy and the government's initiatives to promote SMRs. He also pointed out that NuScale no additional hurdles in connection with HALEU fuels (High-Assay Low-Enriched Uranium) that are required for other Generation 4 SMR technologies.

Robert Hamady, Chief Financial Officer, provided an overview of the financial results. NuScale's NuScale's cash position improved significantly and reached USD 446.7 million at the end of 2024. This is due to a mandatory redemption of warrants which generated net proceeds of USD 227.7 million. For the fourth quarter of 2024, NuScale reported revenue of revenue of 34.2 million US dollars and a net loss of 180.3 million US dollars. reported. For the full year 2024, revenue amounted to turnover amounted to 37 million US dollars and the net loss amounted to 348.4 million US dollars. The operating expenses were significantly reducedresulting in an annual savings of more than 108.6 million US dollars. resulted.

In the subsequent Q&A session the analysts addressed various aspects:

George Gianarikas (Canaccord Genuity) asked about potential bottlenecks in the signing signing an agreement with a large data center company in the USA. Hopkins explained that it was not about bottlenecks, but about the complexity of putting these projects togetherinvolving NuScale as the power module provider, ENTRA1 as the owner and other contractors.

Gianarikas also asked for more details on the parameters parameters or conditions for revenue recognition in the fourth quarter. Hamady explained that the revenue from the provision of services and the progress in the provision of services or the delivery of an item in connection with the in connection with the licensing of technology and subcontracts in the area of EPC work.

Esteban Albarracin (TD Cowen) asked about the forged reactor components from Doosansix of which are destined for the Romanian plant. He wanted to know if the additional six had not yet been booked by another, as yet unannounced, customer. Hopkins confirmed this and explained that this was to shorten lead times, shorten lead times. Hamady clarified that NuScale does not manufacture reactors, but rather preproduction materials for twelve NuScale power modules.

Another analyst inquired about the 800 million dollar grant for Gen 3 reactors in the U.S. and whether NuScale would apply for it. Hopkins said he would be having discussions with the Department of Energy this week to get more clarity. Clayton Scott added that they are evaluating the situation in collaboration with ENTRA1 and some of their off-taker partners.

Eric Stine (Craig-Hallum) asked about the upgrade to 77 megawatts and the remaining steps. Hopkins replied that the technical technical requirements for the NRC were almost completely fulfilled and that it was now a matter of the administrative process. He was confident that the schedule could be met or even exceeded.

Stine asked about the increasing demand for nuclear energy and whether there is a whether there has been a change in the view of traditional nuclear power plants and the restart of decommissioned plants. plants. Hopkins replied that he did not know how many plants could actually be restarted and that he believed that Small Modular Reactors are the future are the future. Clayton Scott agreed and said that there were not many plants left that could come out of the restart program.

Hopkins concluded by emphasizing that NuScale is a first mover in this area and is ready to deliver clean energy at scale.

An exciting company in an exciting sector! It remains to be seen whether this technology will actually catch on.

Other companies that are active in the SMR sector include Rolls Royce ($RR. (-1,99 %) ) and Oklo ($OKLO )

Siemens Energy and Rolls-Royce design mini-nuclear power plants

Siemens Energy $SIE (-1,77 %) and Rolls-Royce $RR. (-1,99 %) have recently signed an exciting supply contract to develop mini nuclear reactors in the UK. These new modular reactors are not only simpler but also cheaper to build than the conventional nuclear power stations we are familiar with. Siemens Energy will provide key equipment such as steam turbines and generators. An official contract is expected to be signed by the end of the year, further increasing the anticipation for this innovative technology.

With an impressive output of up to 470 megawatts, the planned reactors could supply around 1.1 million households with electricity. Nevertheless, there are also critical voices: Opponents of nuclear power warn that a large number of smaller plants could bring new risks. The nuclear industry, on the other hand, emphasizes the advantages of this technology and sees it as a forward-looking solution. In countries such as the UK, Czech Republic and Poland, the development of such small modular reactors is being driven forward, while Germany is phasing out nuclear energy.

Health insurance companies call for measures to tackle deficit

The health insurance funds are facing an unexpectedly large challenge: the deficit is higher than expected. The head of the association, Pfeiffer, is pushing for immediate measures to stop the continuous rise in expenditure. She is proposing an expenditure moratorium to ensure that health insurance funds do not spend more than they earn with the current contribution rates. Price or fee increases that exceed current revenues should be avoided. This step would give politicians the time they need to tackle the necessary structural reforms in the healthcare system. A fundamental change of course in healthcare policy is considered urgently necessary in order to stabilize the financial situation of the health insurance funds in the long term.

Sources:

https://www.n-tv.de/wirtschaft/Siemens-Energy-entwickelt-mit-Rolls-Royce-Mini-Atomkraftwerke-article25597452.html

https://www.spiegel.de/wirtschaft/krankenkassen-defizit-hoeher-als-erwartet-verband-fordert-massnahmen-a-cd7e2e02-70f5-4125-b201-00bdfc72f15b

A little update on current events: I took a look at the largest defense companies in Europe and thought it might be of interest to you.

So here's a brief overview of the ten most important players - with a few basics about the companies, their figures (turnover, valuation, etc.) and an assessment of how much potential they still have.

These companies are currently the focus of the armaments boom and are very popular with many investors.

➡️ BAE Systems (UK) $BA. (-0,39 %) - British defense technology

• P/E RATIO (P/E): approx. 21.7 on a trailing basis; expected ~19.4 (2025e)
• P/E RATIO (P/S): approx. 1.60 current; expected ~1.37 (2025e)
• Dividend yield: ~2.2 % (annual dividend ~31 pence)
• Share price (March 2025): ~£14.07 (approx. €16)
• Market capitalization~£42 billion
• Outlook: Solid sales growth (~+5% expected for 2025)
• Analysts mostly with Buy-recommendation (11 buy, 5 hold, 1 sell)

📈 Rating:

BAE Systems appears to be fairly valued at the current fairly valued to slightly favorable. The P/E ratio in the low 20s already reflects good business figures, but is in line with the industry as a whole

In view of rising defense spending and a solid order situation, moderate growth is expected, which underpins the valuation. The share is therefore considered neither highly overpriced nor a bargain - with slight upside potential. upside potential thanks to sustained demand in the defense sector.

➡️ Airbus (Defense & Space, EU)
$AIR (+0,65 %) - European aerospace group

• P/E RATIO (P/E): ~30.9 current; expected ~24.9 (2025e)
• P/E RATIO (P/S): ~1.89 current; expected ~1.73 (2025e)
• Dividend yield: ~1.5 % (incl. special dividend; regular ~1.1 %)
• Share price: ~165 €
• Market capitalization: ~131 bn €
• Outlook: Civil and military aircraft demand high; 2025 delivery target raised
• Analyst consensus positive (price targets ø ~€182, ~+10% upside)

📈 Valuation:

Airbus is primarily rated as fair to slightly fair to slightly demanding valuation is seen as fair to slightly demanding. The high current P/E ratio ~31 reflects pandemic-related earnings weakness, but should fall significantly in 2025.

At a P/E ratio of ~1.8, the sales valuation is moderate. As production and profits are likely to increase in the coming years, the share appears reasonably valued. Greater share price potential depends on growth (e.g. higher jet deliveries); if this is successfully realized, the valuation could prove to be justified be justified.

➡️ Leonardo S.p.A. (Italy)
$LDO (-1,81 %) - Italian defense and aerospace group

• P/E RATIO (P/E): ~22.5 current; expected ~20.6 (2025e)
• P/E RATIO (P/S): ~1.35 current; expected ~1.17 (2025e)
• Dividend yield: ~0.7 % (share price € 38.56, dividend € 0.28)
• Share price: ~38-39 €; Market capitalization: ~21 bn €
• Outlook: Strong order situation due to defense technology (market cap. +100 % in 12 months)
• Analysts see further upside potential; earnings estimates moderately rising (double-digit sales margins).

📈 Valuation:

Leonardo appears favorably valued compared to the industry favorably to fairly valued. With a P/E ratio of around 20 and a P/E ratio of ~1.3, the valuation is below that of many Western European peers. The low dividend yield reflects a strategy focused more on reinvestment.

In view of double-digit growth (share price +~100 % YoY), there could still be upside potential upside potential if margins continue to rise. Overall, the moderate valuation level suggests that Leonardo is rather slightly undervalued provided that growth in defense electronics and aerospace continues.

➡️ Thales S.A. (France) $THALES (+1,65 %) - Defense Electronics, Aeronautics & Security

• P/E RATIO (P/E): ~28.5 current; expected ~24.3 (2025e)
• P/E RATIO (P/S): ~2.0 current; expected ~1.9 (2025e)
• Dividend yield: ~1.8 % (rising towards ~2 % expected)
• Share price: ~197,7 €
• Market capitalization: ~39 bn €
• Outlook: Solid sales growth (orders in defense and cybersecurity). 2024/25 profit increase expected (forward P/E <25)
• Analysts mostly positive (stable business areas, diversification).

📈Valuation:

With a P/E ratio close to 28, Thales is listed at the upper end of the industry scale, but this is partly justified by the stable earnings situation and growth in the civil electronics business. The P/E ratio of ~2 signals that investors are paying slightly more for sales than for pure defense companies - a premium for the profitable cyber/digital business. Overall, the share appears fairly valuedalthough not cheap.

Since Thales, as a broad-based technology group, is benefiting from rising defense budgets, the current valuation seems justifiable; there is further growth potential. growth potential growth potential exists, but larger share price gains are likely to be linked to higher-than-expected earnings growth.

➡️ Rheinmetall AG (Germany)
$RHM (-1,56 %) - Vehicle and weapon systems, ammunition

• P/E RATIO (P/E)very high, ~76.9 current (TTM); expected ~51.8 (2025e)
• (current profits depressed by investments).
• P/E RATIO (P/S): ~4.95 current; expected ~4.37 (2025e)
• Dividend yield: only ~0.6 % (5.70 € div. / share price ~1006 €)
• Share price: ~1.040 €; Market capitalization~44 bn €
• Outlook: Extraordinary sales growth expected - forecast for 2025 raised to € 11-12 bn sales (compared to ~€ 7 bn in 2023)
• Investors have already strongly priced in this expectation (share price > €1000; +≈50% in 6 months)

📈Valuation:

After the rapid rise in the share price, Rheinmetall appears very ambitiously valued. Although the current P/E ratio (>75) is not very meaningful due to extraordinary costs, even the forward P/E ratio of around 52 signals high expectations

The low dividend yield and P/E ratio of ~5 underline that the share is already anticipating a major future jump in sales and earnings. If Rheinmetall achieves its optimistic growth targets (keyword: special assets of the German armed forces, NATO orders), the key figures could fall in the future. Until then, however, the share is considered overvalued - Investors are paying a high price for the growth potential. The upside potential is therefore subject to risks; setbacks in major orders could lead to corrections.

➡️ Dassault Aviation (France) $DAU - Fighter aircraft (Rafale) & business jets

• P/E RATIO (P/E): ~24.1 current; expected ~21.4 (2025e)
• P/E RATIO (P/S): ~3.8 current; expected ~3.2 (2025e)
• Dividend yield: ~1.37 % (div. € 3.37 at share price ~€ 246)
• Share price: ~249 €
• Market capitalization: ~19 billion €
• Outlook: Increasing export demand for Rafale jets and growing business with private jets. Analysts expect profit growth in the coming years (P/E ratio declining <22). Participation in Thales provides strategic added value.

📈Valuation:

Dassault Aviation appears to be moderately valued. The current P/E ratio of ~24 is in the mid-range and the company has little debt, which puts the higher P/E ratio (~3.8) into perspective. Investors are paying a premium for the high net cash position and future major orders (fighter jets).

Overall, the share is considered fairly valued - neither obviously undervalued nor too expensive. In view of the stable margins and special role (high-end military aircraft), a slightly higher sales multiple is justifiable. The growth potential (e.g. through defense projects and new Falcon business jets) could provide medium-term share price momentum without the valuation getting out of hand.

➡️ Saab AB (Sweden)
$SAAB B (-2,35 %) - Defense systems, aircraft (Gripen) & security

• P/E RATIO (P/E): ~40.9 current; expected ~32.0 (2025e)
• P/E RATIO (P/S): ~2.7 current; expected ~2.3 (2025e)
• Dividend yield: ~0.7 % (estimate) - Saab pays out small amounts every six months due to dividends.
• Share price~320 SEK (Swedish krona);
• Market capitalizationSEK ~173 bn (approx. € 15-16 bn)
• OutlookStrong order backlog (e.g. fighter aircraft, submarines). For 2025, 12-16% organic sales growth is forecast with disproportionately high EBIT growth. Analysts mostly Buy (5 Buy, 2 Hold) - they are counting on a catch-up effect in margins.

📈Valuation:

Saab is currently quite highly valuedwhich reflects the future opportunities. A P/E ratio of ~41 is above average for defense companies and signals that current profits are (still) low - in fact, Saab invests heavily in development, which squeezes margins. The price/sales ratio of ~2.7, on the other hand, is roughly comparable with other aerospace companies. Should the envisaged double-digit growth materialize and profitability increase, the valuation will be put into perspective (forward P/E ~32).

However, the company is currently paying an advance on future profits, so that Saab is rather slightly overvalued is slightly overvalued. The growth potential (in particular through higher defence spending in Scandinavia and new Gripen export orders) is high - if it is realized, the valuation should return to a normal range in a few years.

➡️ Rolls-Royce Holdings (UK) $RR. (-1,99 %) - Engines for civil aviation & military, energy

• P/E RATIO (P/E)~25 (TTM) according to current share price; profits are returning after years of losses.
• P/E RATIO (P/S)~3.3 (based on Feb. 2025)
• Dividend yield: 0 % (dividend suspended since 2020)
• Share price: ~£6.20 (approx. €7.35; equivalent to ~$9.35)
• Market capitalization: ~$79.5 billion (≈ £52 billion)
• Outlook: Turnaround underway - profit growth expected again from 2025 after restructuring. Analysts are optimistic (12 Buy, 3 Hold, 1 Sell) and see long-term upside potential of ~5% above current levels. High debt remains a risk, but commercial engine maintenance contracts and defense division provide cash flow.

📈Valuation:

After the share price multiplier in 2023 (share price +~245 % in 2023), Rolls-Royce is now no longer clearly undervalued. The P/E ratio of ~25 looks moderate, but it should be borne in mind that this is based on the recently positive earnings - margins are still low.

The sales valuation at approx. 3.3 times sales is in the midfield between classic defense and civil aircraft manufacturers. Without a dividend and with a debt burden, Rolls must first prove that the turnaround is sustainable. Overall, the share is currently fair to slightly overvalued as there is a lot of future potential (e.g. new generations of engines, small modular reactors) in the share price. If the hoped-for jump in profits is achieved in the next few years, Rolls-Royce could catch up further - however, the current upside potential is rather limited. limitedas long as tangible results are awaited.

➡️ Safran S.A. (France)
$SAF (-1,46 %) - Engines (e.g. CFM), aviation supplier

• P/E RATIO (P/E): n/a (TTM negative - recent loss or special effect); to 2025e about ~31.7
• P/E RATIO (P/S): ~3.76 current; expected ~3.35 (2025e)
• Dividend yield: ~1.7% (dividend ~€3.50 p.a.)
• Share price: ~255 €
• Market capitalization: ~102 bn €
• Outlook: Safran suffered from one-off costs in 2024 (engine issue), but expects solid profits again. 2025 earnings per share should increase significantly (P/E normalized ~32).
• Analysts are divided: ~13 Buy, 6 Hold, 1 Sell - the majority see further share price potential, as Safran benefits in the long term as a high-quality supplier (duopoly with GE in aircraft engines).

📈Valuation:

Safran appears distorted by the disclosure of a loss (negative TTM P/E ratio), in fact the share is highly valued on the basis of the underlying earnings power. A forward P/E ratio of over 30 and P/E ratio close to 4 are well above the sector average, which anticipates the market position and growth opportunities (increasing aircraft production, maintenance business). The dividend yield is relatively low at <2%.

Overall, Safran is probably rather overvalued investors are paying a premium for quality and market position. The growth potential (recovery in aviation, new engine programs) does exist, but is largely priced into the share price. Setbacks could ease the valuation somewhat; in the long term, however, Safran remains an expensive but very solid value.

➡️ Hensoldt AG (Germany) $HAG (-2,42 %) - Specialist for sensor and radar technology

• P/E RATIO (P/E)extremely high (TTM >400) due to low profits; forward P/E 2025e approx. 36-37
• P/E RATIO (P/S): ~3.0 currently
• Dividend yield: ~0.7 % (expected dividend € 0.40)
• Share price: ~52 €; Market capitalization: ~6 bn €
• Outlook: In high demand as an electronics supplier to the German armed forces (radar, night vision, avionics). Incoming orders from the German special fund and NATO programs will increase sales significantly in the coming years. However, Hensoldt is still in the start-up phase - profit margins are only expected to increase significantly in the medium term.

📈Valuation:

After a sharp rise in the share price, Hensoldt is clearly expensive. The current P/E ratio is hardly reasonable (triple-digit due to special effects in the balance sheet); even on a forward basis, it is in the high 30s, which is high even for high-growth tech stocks.

Investors are therefore paying in advance for expected future profits. The KUV ~3 reflects the enormous sales growth, but is not low for a defense electronics specialist. The low dividend yield shows that profits are being retained. Overall, the share seems overvalued - the high momentum (+54 % last year) already largely prices in future growth. Although Hensoldt has excellent growth prospects (digitization of defence, networking), but these would first have to translate into significantly higher profits to justify the current valuation. An entry is therefore considered speculative, as setbacks are possible if expectations are not met.

👉 Conclusion:

Europe's largest defense companies are benefiting from the rearmament cycle, which is reflected in higher valuations in some cases. Undervalued Leonardo appears undervalued in this group (thanks to more favorable ratios), while established companies such as BAE, Airbus, Thales and Dassault are largely fairly valued. fairly valued appear to be fairly valued.

Stocks with a turnaround character (Rolls-Royce) or a high future share (Rheinmetall, Hensoldt, Safran, Saab) show higher multiples and tend to be considered overvalued. overvaluedas a lot of growth is anticipated.

The growth potential is high across the industry - higher defense budgets, technology purchases and retrofitting requirements are keeping order books full. The decisive factor for further share price increases will be whether companies can translate these growth opportunities into rising profits in order to put the ambitious valuations into perspective.

Siemens Energy $ENR (-1,7 %) and Rolls-Royce $RR. (-1,99 %) cooperate

The energy technology group Siemens Energy has concluded an agreement with the British industrial group Rolls-Royce for the development of so-called "mini-nuclear power plants". The aim of this agreement is for Siemens Energy to become the sole supplier for the non-nuclear part of the British manufacturer's planned modular nuclear power plants, known as "Turbine Island", the company announced on Friday. This area includes steam turbines, generators and other auxiliary systems. A final contract with all the details is to be signed by the end of 2025.

Intel $INTC (-0,21 %) delays plant launch in the USA

After the plant in Magdeburg, the chip giant Intel is also postponing the start of a huge factory in the US state of Ohio. Production was originally due to start this year, but has now been delayed by up to three years. Intel plans to complete the first part of the plant by 2030, with production starting in the same year or 2031. The second part is scheduled to deliver the first chips in 2032.

Sources:

https://www.manager-magazin.de/unternehmen/energie/siemens-energy-will-mit-rolls-royce-atomkraftwerke-bauen-a-4d96f9c9-e753-4185-8bef-7278896e0b20

https://www.manager-magazin.de/unternehmen/tech/intel-verschiebt-start-von-grossem-werk-in-den-usa-a-094fd7d0-9514-4b9c-983c-e8e0210d87d8