Rheinmetall AG

Daimler Truck Holding AG

Mercedes-Benz Group AG

The German parliament is preparing to approve €2.9 billion ($3.4 billion) for 11 contracts in military purchases, including drones, rifles and missiles, Bloomberg <a href="https://www.bloomberg.com/news/articles/2025-11-28/germany-set-to-approve-2-9-billion-in-arms-in-defense-surge">reported</a>. Most of the orders will go to German manufacturers.

Germany is preparing a €2.9 billion military procurement. Which stocks will benefit?

BAE Systems plc

Saab AB

Securities of German arms manufacturer Rheinmetall fell in price on Monday, November 24, on the Frankfurt Stock Exchange by 5%, and over the last five sessions - by more than 16%. Other European arms manufacturers Saab, Leonardo S, and BAE Systems also saw their share prices fall. Goldman Sachs' index portfolio of sector stocks is now about 25% below its early October peak and has fallen to its lowest levels since April. The recent drop in quotes has taken away the excessive excitement surrounding the powerful rally in European defense stocks that began around the end of February 2022, Bloomberg <a href="https://www.bloomberg.com/news/articles/2025-11-24/european-defense-stock-rally-crumbling-as-ukraine-talks-progress">notes</a>.