The Defence race continues, in addition to Leonardo, Fincantieri benefits

(Il Sole 24 Ore Radiocor) - The refreshed momentum of European defence continues, in the wake of the cooling of hopes for short-term peace in Ukraine, after yesterday's Russian attack on Kiev, and the prospects for global rearmament. Thus, at the moment Leonardo - Finmeccanica leads the rises in Piazza Affari (FTSE MIB ), bringing the total haul since the start of the year over 90%. Outside Milan's main basket, purchases also rewarded Fincantieri which updated its all-time high above EUR 20. The stock of the group led by Pierroberto Folgiero has risen around 190% since the start of 2025, with +15% in the last week alone, thanks to strengthening in thenaval naval and diving sector. For the sector, as reported today in an article in the Financial Times, Fincantieri has estimated the value of the global market at around €50 billion a year, with revenues expected to double to around €820 million in 2027. In the rest of the Old Continent, Thales climbs in Paris, while Rheinmetall runs in Frankfurt, boosted in part by press rumours about the possible acquisition of German shipyard Naval Vessels Luerssen and the company's consequent expansion into the naval sector.

In general, the defence sector has been in focus for several months due to the conflicts in the Middle East, where the war in Gaza continues, and in Ukraine. The peace process initiated after the Summit of 15 August between US President Donald Trump and his Russian counterpart Vladimir Putin (which was followed by the summit between the tycoon, Kiev's number one Zelensky and European leaders) seems to have suffered a setback in recent weeks. What definitively rekindled tensions on the eve of the summit was the Russian attack on the city of Kiev, in which the headquarters of the European delegation was also severely damaged. Moscow remains 'interested' in peace talks with Ukraine, the Kremlin said, but will continue to conduct attacks in the country until its 'objectives' are achieved. In the meantime, American mediation efforts also appear to be stalled, with Trump overnight approving the 825 million dollar arms sale to Kiev.

Add to this the prospects of global armament within and outside Europe. In this regard, the Japanese Ministry of Defence has requested a record 8.8 trillion yen ($59.8 billion) for armaments to counter growing challenges from China and North Korea. Tokyo intends to raise defence spending to 2 per cent of GDP by 2027 and it is not excluded that the effects of the decision may also impact European companies.