In the first half of 2025, the German leading index DAX showed an impressive performance with an increase of around 22 percent, significantly outperforming both the Euro Stoxx 50 and the S&P 500. This strong development is primarily favored by several factors:
Factors for the Upswing
- Massive government spending in Germany, particularly investments in defense and infrastructure, which strengthen utilities, financial values, and industrial companies.
- Hope for a timely agreement in the transatlantic trade dispute, which promotes optimism in the markets.
- The search for alternatives to the US dollar by many investors further strengthens European stocks.
Winners Among DAX Stocks
Three DAX stocks, in particular, benefited and emerged as clear winners:
| Stock | Price Development H1 2025 | Reasons for Price Increase |
|---|---|---|
| Rheinmetall | +184.90 % | High demand for armaments due to geopolitical crises; expansion of munitions and tank production secures new contracts |
| Hensoldt | Significantly increased (expensive valuation) | Benefiting from defense investments; demand for security technologies is rising |
| Renk | Significantly increased (expensive valuation) | Industrial supplier benefiting from the infrastructure boom and government investments |
These three companies are particularly closely related to the theme “Germany invests at record levels”. The expansion of government spending drives their prices up, as they directly benefit from higher defense budgets and infrastructure projects. Analysts see a clear trend in this: the focus on security and modernization is boosting these industries in the DAX.
For private investors, the strong first half of the year is a good sign: historically, such a strong first half often leads to further positive development in the second half of the year. Statistics show that when the DAX rises by more than 10% in the first six months, in about 71% of the cases the second half of the year also brings profits – averaging another +7%.
However, risks remain: political uncertainties in the USA and potential growth slowdowns could dampen momentum. Nevertheless, confidence currently dominates in light of record high German investment readiness.
In summary, particularly the following three DAX stocks are benefiting from Germany’s record investments in 2025:
- Rheinmetall
- Hensoldt
- Renk
They represent the strong growth of companies from the defense, utilities, and industrial sectors due to government support measures and global geopolitical developments.