Investor interest in global defence stocks is on the rise, according to Betashares’ Tom Wickenden, as the recent earnings season confirms the sector’s strong performance. Despite varied results from major US players like Lockheed Martin, Raytheon, and Northrop Grumman, the overriding trend indicates substantial order backlogs and increasing international demand.
Raytheon’s backlog saw a significant 15 per cent increase, reaching $236 billion, while Northrop Grumman reported an 18 per cent surge in international sales. European defence companies are also benefiting from this upward trend, supported by NATO’s commitment to spend 5 per cent of GDP and the EU’s €800 billion ReArm plan. Betashares is an Australian investment management firm offering a range of exchange traded funds (ETFs). They aim to provide investors with access to diverse investment strategies.
In Australia, Betashares’ ARMR ETF experienced a notable surge of 25.6 per cent during the June quarter. Palantir and Hanwha Aerospace were among the top performers driving these gains. Wickenden suggests that these trends are likely to continue.
“With geopolitical tensions intensifying and government budgets expanding, we see structural tailwinds continuing to support the sector,” Wickenden stated, highlighting the ongoing positive outlook for the defence industry.
