Today we are not going to look at a single share, but take a look in a completely different direction. Into the defense sector.

Of course, the most well-known Etf in this sector, the VanEck Defense UCITS Etf, has caught my eye. Its annual performance is around 50%, and it has already posted a return of around 15% this year.

So today we want to take a closer look at what it really contains and whether an investment would be worthwhile, purely on the basis of the fundamental data.

$DFEN (-3,22 %)

The fund volume currently amounts to €7.278 billion with annual costs of 0.55%. The Etf is an accumulating fund.

Company distribution:

Palantir Technologies 8% $PLTR (-4,26 %)

RTX Corporation 8% $RTX (+1,76 %)

Thales 7% $HO (-0,43 %)

Leonardo- Finmeccania 7% $LDO (+0,11 %)

Hanwha Aerospace Co Ltd ORD 6% $012450

Elbit Systems 6% $ESLT (-0,66 %)

Saab 6% $SAAB B (-1,96 %)

Curtiss Wright 5% $CW (-1,55 %)

Leidos 4% $LDOS (+0,63 %)

=57%

The remaining 43% is distributed in smaller shares among other companies, such as Planet Labs $PL (-25,33 %) (approx. 2%) or Ondas $ONDS (-12,61 %) (1%).

Country distribution:

USA 49%

South Korea 11%

Europe 30%

Israel 7%

Singapore 3%

1 Palantir Technologies (USA)

Conclusion: Palantir is not a normal stock

Palantir has developed impressively from a speculative bet to a fundamental force in the S&P 500. The company is more profitable than ever before: massive profit and sales growth meets software margins that are unparalleled in the industry.

But quality has its price on the stock market: this success has already been fully recognized and priced in by the market. With a current P/E ratio of almost 300, the share is extremely expensive and leaves little room for disappointment. Palantir is therefore a highly profitable, exceptional company, but its valuation already anticipates the perfection of the coming years.

This can also be clearly seen in the analysts' estimates: some say there is still plenty of room for improvement with a price target that is almost twice as high, while others say the fair value is half the current price.

That's why I personally can't really get on board with Palantir. The share as a whole is not a buy for me at the moment.

2. RTX corporation(USA)

Conclusion: RTX - The operational bulwark

RTX (formerly Raytheon) is the definition of stability and predictability in April 2026. With a gigantic order backlog of USD 268 billion, the business is secured for years to come. The company has solved the technical problems of the past and is now converting its dominant position in aerospace and defense into record-breaking cash flows.

While Palantir thrives on the AI fantasy, RTX delivers the physical reality: a moderate P/E ratio of around 36 compared to Palantir, rising dividends and a fundamental safety that is rare in the current market environment. It is not a speculative high-flyer, but a highly profitable basic investment for the security age.

However, perfection is priced in here with very high valuation premiums, so I am also skeptical.

3. thales (France)

Conclusion: Thales - the European "all-rounder"

Thales established itself as the technological backbone of European defense and digital infrastructure in April 2026. With a record order backlog of over EUR 53 billion, the company offers "visibility" for production that extends well beyond 2028.

- Financial performance: 2025 closed with sales of EUR 22.1 billion (+9% organic) and record cash flow. The target for 2026 is clearly defined: A jump in sales to up to EUR 23.6 billion with an improved EBIT margin of around 12.7 %.

- Strategic breadth: Unlike pure defense companies, Thales benefits from three engines simultaneously:

Defense: massive growth through the modernization of European armies.

Aerospace: The recovery in civil aviation is driving demand for avionics.

Cyber & Digital: Through the integration of Imperva, Thales is now one of the world's largest players in the field of data security - a market that is growing completely independently of military budgets.

With a Kgv of 29, we find the most favorably valued company to date.

4 Leonardo Finmenncania (Italy)

Conclusion: Leonardo - the efficiency champion

Leonardo is the "value tip" among the large defense stocks in April 2026. While competitors such as Rheinmetall or Palantir often struggle with extremely high valuations, Leonardo has done its homework in terms of profitability and is now benefiting massively from the European arms race.

- Financial turnaround: Leonardo has beaten all expectations with its figures for 2025. Sales rose to EUR 19.5 billion (+11%), while operating profit (EBITA) increased by a strong 18%. Particularly impressive: net debt was almost halved, giving the Group massive scope for new investments.

- Strategic focus: Under the new industrial plan (2026-2030), Leonardo is fully committed to digitalization and cyber security. With the "Michelangelo" project (an AI-supported air defense system), Leonardo occupies a lucrative niche in the NATO security architecture.

- Valuation as a trump card: Despite a share price rally of almost 190% since 2024, the share is still "reasonably" valued compared to the sector with a forward P/E ratio of around 27. It is significantly cheaper than many US rivals, although Leonardo has similar growth rates for incoming orders (+15%).

We have now briefly analyzed the 4 largest companies in this ETF, which account for around 30%.

How do you rate these companies? Please take a look at the other companies that have not been presented here.

And of course, are you invested in the etf or do you intend to be?

Would it be an investment case for you or do you think the defense sector is largely overvalued?

@Raketentoni
@Tenbagger2024
@Get_Rich_or_Die_Tryin
@Multibagger etc. ....

The EU wants to support its member states with arms loans. Poland's nationalist President Karol Nawrocki sees this as a threat to Poland's sovereignty.

The law in question had previously been passed by Prime Minister Donald Tusk's centre-left coalition and was intended to allow Poland to take out loans of 44 billion euros from the EU to modernize and arm its military.

As part of the so-called Safe Program (Security Action for Europe), the EU is offering low-cost loans totalling 150 billion euros to its member states to help them finance increased arms spending in order to arm themselves against a more aggressive Russia.

The SAFE program in Poland becomes a symbol of the conflict between the government camp and the president.

What does this mean for the arms industry?

$RHM (+0,2 %)

$HAG (-1,04 %)

$DE000TKMS001 (-2,08 %)

$HO (-0,43 %)

$LDO (+0,11 %)

How do you see the veto?

So long

It seems like my post about Europas F-35-Sicherheitsdilemma could not have come at a better time:

Dependence on US armaments is increasingly perceived as a risk factor for Europe's military and security sovereignty and is now being publicly addressed at the highest political level faster than I would have expected.

French President Emmanuel Macron

President of France Emmanuel Macron has made it clear in an interview with Le Parisien that he is critical of Europe's purchase and use of US armaments and proposed replacing them with European alternatives.

Macron was also quite clear: "Those who buy Patriot systems should be offered the next generation of the Franco-Italian SAMP/T. Those who buy F-35s should be offered the Rafale fighter aircraft."

His main concern is greater strategic autonomy for Europe:

• Criticism of US systems: Poland plans to buy American F-35 fighter jets ($LMT (+1,77 %)) and Patriot ($RYTT34). Macron questions these decisions and proposes European solutions.
• European optionsMacron specifically mentions approaches such as joint European development projects to reduce dependence on the USA. Examples include European fighter jets such as Saab Gripen ($SAAB B (-1,96 %)), Eurofighter ($AIR (+0,04 %) - $BA. (-0,13 %) - $MTX (-0,65 %) - $LDO (+0,11 %)) or Dassault
  Rafale ($AM (+0 %)) or air defense systems (e.g. SAMP/T from $HO (-0,43 %), $BA. (-0,13 %), $AIR (+0,04 %) and $LDO (+0,11 %) or Oerlikon Skynex from $RHM (+0,2 %)).
• Long-term strategyMacron's proposals aim to strengthen Europe's military independence by pooling technology, production capacities and resources in the EU member states' own economic area in the long term.

Macron is thus sending a clear signal for more European cooperation in the defense sector and against an excessive focus on US technology.

#emmanuelmacron
#usa
#defense
#verteidigung
#rüstungsindustrie
#europa
$R3NK (-0,67 %)
$IE0002Y8CX98 (-0,25 %)
$HAG (-1,04 %)

$IE0002Y8CX98 (-0,25 %) - WisdomTree Europe Defense UCITS ETF - EUR Acc

TOP 10

$RHM (+0,2 %)

$LDO (+0,11 %)

$SAAB B (-1,96 %)

$BA. (-0,13 %)

$HO (-0,43 %)

$RR. (-1,51 %)

$AIR (+0,04 %)

$SAF (-1,17 %)

$KOG (+0,62 %)

$MRO (+0,09 %)

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

I took part in the Thales conference call ($HO (-0,43 %) ) for the full year 2024 and would like to share the key points and insights with you.

CEO Patrice Caine started with the highlights of 2024 and emphasized the strong commercial momentum of the company in all areas. Thales signed six contracts worth over 500 million euros in 2024, resulting in a new record for order intake and order backlog. At 8.3%, organic sales growth exceeded expectations. The growth in the defense sector is particularly noteworthy. Adjusted EBIT increased by 13% compared to the previous year, and the cash flow was again excellent.

Thales is implementing its strategic roadmap to extend its global technology leadership in defense, aerospace and cyber & digital. In the space business, an adjustment plan was launched to adapt the cost structure to the new market conditions in the civil telecommunications market and to restore profitability.

Order intake increased organically by 6% to EUR 25.3 billion, which corresponds to a book-to-bill ratio of book-to-bill ratio of 1.23 corresponds to a book-to-bill ratio of 1.23. Sales increased by 8.3% to 20.6 billion euros. Adjusted EBIT increased by more than 13% and the EBIT margin improved to 11.8%. Adjusted net profit rose by 7% to 1.9 billion euros, despite higher financial expenses due to increased debt costs in connection with the acquisitions. Free operating cash flow from continuing operations increased by 9% and exceeded EUR 2 billion. The Executive Board proposes a dividend increase of 9% to 3.70 euros .

Pascal Bouchiat, CFO of Thales, explained that the order intake of more than 25 billion euros resulted in a book-to-bill ratio of 1.23. Excluding Cyber & Digital, the book-to-bill ratio even reached 1.28. 35 orders with a value of over 100 million euros were booked in 2024, including six with a value of over 500 million euros. The defense sector accounted for 27 major orders. There was also good momentum in the space sector, particularly in the fourth quarter.

The scope effect amounted to EUR 649 million, mainly due to the acquisitions of Cobham, Imperva and Tesserent. Organic sales growth amounted to 8.3%, with the Defense division recording significant double-digit growth. Avionics recorded mid single-digit growth, while Cyber & Digital achieved low single-digit organic growth.

Gross margin increased by EUR 329 million, mainly due to sales growth in Defense. R&D spending continued to increase and reached 6.2% of total sales. Indirect costs grew organically at half the rate of sales. The Aerospace division recorded a 14% increase in orders. Avionics benefited from strong momentum in the aircraft and aftermarket business, while the aerospace business reported a negative adjusted EBIT due to R&D expenses and restructuring costs. Order intake in the defense business reached a new high of 14.7 billion euros.

Patrice Caine named four strategic priorities for the near future:

• Increasing capacity: Increasing production capacity and securing the right talent.
• Restoring profitability in the space sector: Leveraging Thales Alenia Space's adaptation plan.
• Maintain innovation and R&D leadership: Differentiation through breakthrough products.
• Value creation from acquisitions: Strong operational performance of Imperva and Cobham AeroComms.

Thales targets organic growth of 5% to 6% and an adjusted EBIT margin of 12.2% to 12.4% in 2025.

Following the presentation, analysts had the opportunity to ask questions.

Chloe Lemarie from Jefferies asked about the drivers of the strong defense performance in the fourth quarter Pascal Bouchiat explained that the delivery of equipment that was already on the balance sheet and the resolution of supply chain bottlenecks in radar production had contributed to the strong growth. Patrice Caine added that the recovery in the space sector and the contribution from Cobham AeroComms should improve margins. A further margin increase is expected in the Cyber & Digital segment, while stable profitability is targeted in the Defense segment.

Christophe Menard from Deutsche Bank asked about the sensitivity of the sensitivity of the forecasts in view of increasing defense spending and the time-to-market of various defense products. Pascal Bouchiat emphasized that the forecasts are based on the information known at the time of the Capital Market Days and that a further increase in defence spending has not yet been taken into account. Patrice Caine explained that Thales is able to adapt quickly to demand, but needs additional contracts to further expand capacity.

Ben Heelan from Bank of America asked about the capital allocationpotential acquisitions in the defense sector, the status of talks with Leonardo and Airbus in the space sector and the situation in the supply chain. Patrice Caine emphasized that the priority remains on deleveraging the Group, but did not rule out acquisitions in the defence sector. Talks in the space sector are still at an early stage. Pascal Bouchiat conceded that the situation in the supply chain, particularly for printed circuit boards, has not yet been fully resolved and requires further efforts.

David Perry from JPMorgan asked for an assessment of the political situation in France regarding defense spending and asked about the organic growth of cyber in 2024. Patrice Caine compared the situation in the UK, Germany and France and emphasized that it is important to wait for the concrete measures and budget changes. Pascal Bouchiat explained that Cyber showed good growth, while Digital was impacted by the inventory reduction in the banking sector.

Herve Drouet from CIC Market Solutions asked about the the speed of implementation of capacity increases and the potential impact of an increase in defense spending to 3.5% of GDP. Patrice Caine emphasized that the capacity increases presented have already been achieved and that Thales is able to adapt to market developments but needs concrete contracts. Pascal Bouchiat added that a further increase in production capacity would require investments but should have a positive impact on cash flow.

Ross Law from Morgan Stanley asked about the drivers for the sales forecast of 5 % to 6 % and the absolute and the absolute EBIT level in Space in 2024. Pascal Bouchiat explained that the forecast is based on mid single-digit growth in Avionics and Cyber & Digital and flat to low single-digit growth in Space. The negative EBIT in the Space division amounted to minus EUR 65 million in 2024.

In summary, Thales had a successful year in 2024 and is optimistic about the future. The company's strategic priorities are clearly defined and its financial performance is solid. Increasing defense spending in Europe offers additional growth opportunities, but it is important to wait for concrete actions and contract wins.

The $IWDA (-2,11 %) is now back below its value at the beginning of the year, which is probably due to Trump's announcements on punitive tariffs.

As I have a low US weighting in my portfolio, the return is much better. For the time being, the assumption that the US economy will develop rather negatively in the coming years and that international investor confidence will also decline seems to be confirmed. Europe and Canada are now working together more closely than ever before and I believe it is likely that new trade agreements beyond CETA will be concluded. These could, for example, be agreements on the supply of raw materials or weapons, which would then benefit both partners without using the USA as a mediator (as is currently the case). Public concerns about the potential threat of war are growing, which is of course particularly good for insurance companies and the arms industry. The greater the fear in society, the greater the need to insure against this fear, for example through term life, building protection, household contents or legal expenses insurance. Primary insurers such as Allianz ( $ALV (-0,46 %) ) and reinsurers such as Hannover Re ( $HNR1 (+0,4 %) ) and Munich Re ($MUV2 (+1,73 %) ). I do not $MUV2 (+1,73 %) is not in my portfolio because I don't want to overdiversify and therefore only hold Hannover Re, which has a more stable historical performance.

If there is a fear of war, people also want to protect themselves physically, which is why they are more willing to spend a larger proportion of their economic output on defense.

All of this would benefit my portfolio. With Thales ( $HO (-0,43 %) ) I am up 75% since the beginning of the year. Safran ($SAF (-1,17 %) ) has also gained 25%. However, I am more convinced by Thales, as they offer cyber security products/solutions in addition to military machines. We still have a lot of demand in this area and new security concepts have to be developed all the time as the old ones can suddenly be circumvented at some point. The products are therefore never fully developed, which is why innovation is always possible, enabling higher prices due to higher quality.

So my conclusion is this: I am currently cautious about US equities. The insurance and defense sector will benefit regardless of whether war actually breaks out or not and I therefore expect returns above the market average.

Hello everyone,

I still have until 24.11. to draw 🤷🏻‍♂️

Price is 119,69€ plus 500€ discount. With 100 shares my price would be 114,69€. The Thales share is currently $HO (-0,43 %) at approx. 152€.

I've never filled out the KAP form before, which is actually the main reason that's stopping me (I've been doing my taxes with Taxfix for a few years now).

Do you fill in the KAP annex? Any experience?