Kongsberg Gruppen saw strong Q1 figures in its Defence & Aerospace division driven by order intake from its missile division and management has indicated that the news US defence budget will insignificantly increase spending on the Naval Strike Missile programme which will benefit Kongsberg Gruppen.
The Sweden-based defence and aerospace company Saab reported in its Q1 results a 266% order increase in its Dynamics division which includes areas such as ground combat, missile systems, underwater systems, and training solutions.
The investments cycle that has started in Europe due to the war in Ukraine should not be underestimated and it is potentially the biggest driver of Germany changing its perception of the world and its role as Europe’s largest economy. An increased focus on military spending is what could pull Germany for good out of its austerity thinking and into spending mode. The galloping energy crisis is the next catalyst for Germany to spend even more on infrastructure.