Germany's Defense Budget Surge Benefits Rheinmetall
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy BA?
Source: Fool
- Defense Budget Surge: President Trump's proposal for a $1.5 trillion defense budget in 2027, nearly double last year's $892.6 billion, if approved by Congress, would mark the largest annual increase since World War II, reflecting the U.S. commitment to strengthening military capabilities amid global turmoil.
- Germany's Military Spending Boom: Germany plans to raise its defense budget to €114 billion in 2026, a 24% increase from 2025, positioning itself as the fourth-largest defense spender globally, with Rheinmetall set to supply much of the necessary hardware as it aims to build the largest army in Europe by 2030.
- Technological Innovation and Product Diversification: Rheinmetall produces not only artillery and ammunition but also vehicles, drones, and anti-aircraft weapons, and its partnership with Boeing to integrate the MQ-28 Ghost Bat drone underscores its leadership in defense technology.
- Financial Recovery: Despite missing earnings estimates in the latter half of 2025, Rheinmetall reported an 8% year-over-year sales increase and a 17% rise in operating profit in Q1 2026, with a 31% increase in backlog to €72.9 billion, indicating strong market demand and profitability.
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Analyst Views on BA
Wall Street analysts forecast BA stock price to rise
16 Analyst Rating
14 Buy
1 Hold
1 Sell
Strong Buy
Current: 229.210
Low
150.00
Averages
269.14
High
298.00
Current: 229.210
Low
150.00
Averages
269.14
High
298.00
About BA
The Boeing Company is an aerospace company. Its segments include Commercial Airplanes (BCA), Defense, Space & Security (BDS), and Global Services (BGS). Its BCA segment develops, produces and markets commercial jet aircraft principally for the commercial airline industry worldwide. Its family of commercial jet aircraft in production includes the 737 narrow-body model and the 767, 777 and 787 wide-body models. Its BDS segment is engaged in the research, development, production and modification of manned and unmanned military aircraft and weapons systems for strike, surveillance and mobility. Its BGS segment provides services to its commercial and defense customers worldwide. It sustains aerospace platforms and systems with a range of products and services, including supply chain and logistics management, engineering, maintenance and modifications, upgrades and conversions, spare parts, pilot and maintenance training systems and services, technical and maintenance documents, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Disappointment from U.S.-China Summit: The meeting between Trump and Xi failed to deliver major breakthroughs, particularly disappointing investors with Boeing's aircraft commitment, which fell short of the anticipated 500 planes, coming in at around 200, thus pressuring Boeing's stock.
- Volatility in Arm Holdings: Shares of Arm Holdings dropped 7% on Friday, continuing a volatile trend following its earnings report, with Jim Cramer cautioning that the market is anxious about its ability to secure sufficient manufacturing capacity at TSMC for its AGI CPU, recommending a reduction in exposure.
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