Defense Companies as Top Performers in 2023
In 2023, German defense companies, particularly Rheinmetall, showed impressive performance on the stock market. This development is especially interesting for investors who are keen on the defense sector and its market movements.
Rheinmetall as a Beacon
Rheinmetall established itself as one of the top performers in the DAX in 2023. The company’s stock recorded an increase of 181 percent over a 6-month period. This price surge is mainly due to the rising demand for defense goods, spurred by geopolitical tensions and investments in the defense industry.
In May 2025, Rheinmetall’s stock reached a record high of 1,745 euros, constituting a 175 percent increase since the beginning of the year. Since the onset of the war in Ukraine in 2022, the stock price has doubled each year.
Long-term Performance
In a ten-year view, Rheinmetall’s stock achieved an impressive return of 3,321.8 percent, which corresponds to an average annual performance of about 38.7 percent. This long-term development shows that Rheinmetall is one of the most dynamic and successful stocks in the defense sector.
Other Defense Companies
Alongside Rheinmetall, there are other German defense companies that have developed positively. HENSOLDT is another company in the defense sector that has shown strong performance in recent months. HENSOLDT’s stock has been classified as high-risk, but it has achieved a positive relative performance of +40.86 percent over the last four weeks against the STOXX 600 Index.
Market Forecasts and Investments
The demand for defense stocks remains high, particularly due to initiatives like the 100 billion euro special fund from the federal government for the defense industry. These developments could continue to lead to positive momentum in the sector.
For investors interested in investing in the defense sector, it’s important to carefully assess geopolitical developments and the associated market opportunities and risks. The strong performance of companies like Rheinmetall could provide incentives for further investments, but the volatility of the market should also be taken into consideration.