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In the latest episode of our podcast, The Next Big Thing, I spoke with Dr Alexander Sagel, Chief Executive Officer of RENK. We discussed why mobility systems are becoming a decisive layer of defence capability, how Europe’s rearmament is driving a long-duration demand cycle across land and naval platforms, and how RENK is evolving from a mechanical engineering champion into a software-defined mobility provider, with hybrid power and autonomy shaping the next generation of battlefield platforms.
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In the latest episode of our podcast, The Next Big Thing, I spoke with Dr Alexander Sagel, Chief Executive Officer of RENK. We discussed why mobility systems are becoming a decisive layer of defence capability, how Europe’s rearmament is driving a long-duration demand cycle across land and naval platforms, and how RENK is evolving from a mechanical engineering champion into a software-defined mobility provider, with hybrid power and autonomy shaping the next generation of battlefield platforms.
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European defence stocks in 2025 swung on ceasefire hopes but ultimately tracked a structural rearmament trend. 2026 catalysts include stalled peace efforts, Greenland/Arctic sovereignty push, US curbs on buybacks and dividends, a stronger IPO pipeline and industrial conversion that expands capacity beyond the primes.
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In the latest episode of our podcast, The Next Big Thing, I spoke with Pierroberto Folgiero, CEO of Fincantieri. We discussed why shipyards have become strategic assets again, how Europe’s defence rearmament is reshaping naval demand, and how Fincantieri is evolving from a traditional shipbuilder into a systems integrator for the next generation of naval platforms.
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Peace talks are moving from a 28- to a 19-point plan but fighting and core disputes over territory and security guarantees persist, so a classic “peace dividend” in Europe looks unlikely. Q3 earnings season data for the WisdomTree Europe Defence UCITS Index show rising backlogs and sales, supporting the case for investing in the European defence sector.
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Europe’s rearmament is a distinct megatrend. Many global defence exchange-traded funds (ETFs) dilute that signal by including non-European players and revenues earned outside Europe. This blog explains how a Europe-only universe anchored in European companies, combined with a revenue-tilted methodology that weights companies by their defence exposure, can deliver a cleaner alignment with Europe’s procurement, stockpile replenishment and industrial capacity expansion. It also covers why some ‘Europe defence’ labels still include non-European issuers, and shows how liquidity and spreads make the exposure practical to own within a broader portfolio.
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Escalating Russian incursions and Germany’s new shoot-down authority for hostile drones are turning Europe’s grey-zone pressure into funded programmes. WisdomTree Europe Defence UCITS Index’s rebalance adds eight companies across space communications, counter Unmanned Aerial Systems (UAS), seabed security and protection. Backlog conversion underpins double-digit earnings per share (EPS) growth, pointing to gradual multiple compression.
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