European financial markets present an extremely varied picture. While the automotive sector struggles with massive losses resulting from costly transformation, the defense and energy industries report record results. Italy's Leonardo and Germany's Hensoldt are benefiting from the wave of remilitarization, and giants like Eni and E.ON are capitalizing on the commodity boom and investments in transmission infrastructure, as confirmed by the latest annual reports of companies.

Record Defense Industry Results

Leonardo and Hensoldt report powerful order portfolios, benefiting from NATO member states' spending on defense and modern technologies.

Energy Sector Bets on Grids

E.ON plans to spend 48 billion euros on transmission infrastructure, which is to support the development of the artificial intelligence sector in Europe.

Optimism in the Gold Market

JP Morgan forecasts the price of gold to rise to $6,300 per ounce in 2026, signaling investor concerns about currency stability.

Restructuring in Industry

Kitchen appliance manufacturer SEB plans to lay off 2,100 people, responding to changing demand conditions in global markets.

Analysis of the 2025 financial results of leading European corporations reveals deep fractures in the condition of individual economic sectors. Leading the growth is the defense industry, where the Italian conglomerate Leonardo exceeded financial forecasts, reducing debt and recording a sharp increase in its order portfolio. A similar trend is shown by Germany's Hensoldt, which, despite not meeting revenue expectations, amassed a record number of contracts thanks to global demand for radar systems and military electronics. This situation is further stabilized by an upcoming contract from the British Ministry of Defence for the purchase of helicopters, which is to be formalized in the coming days. In the energy and raw materials sector, optimism prevails, driven by high prices and strategic shifts in extraction. Italy's Eni reported a 35% increase in adjusted net profit, an effect of successes in the upstream segment, especially in Angola and Norway. Meanwhile, Germany's E.ON is increasing spending on the European energy architecture, seeing grid modernization as the key to servicing growing demand generated by data centers and artificial intelligence. In the commodities markets, JP Morgan analysts have radically raised gold price forecasts, predicting it will reach $6,300 per ounce by the end of 2026, reflecting expected geopolitical uncertainty. This situation resembles the Cold War period, when defense spending was a key pro-growth impulse for Western economies; however, the current dynamics are further complicated by the necessity of simultaneously financing the low-emission transformation.A shadow over these results, however, is cast by the problems of the service and aviation sectors. London's Heathrow Airport recorded a drop in annual profits of over one-third, despite the gradual return of passenger numbers to pre-pandemic levels. Meanwhile, the SEB corporation, producer of Tefal-brand household appliances, announced a reduction of 2,100 jobs worldwide as part of cost optimization. In the pharmaceutical industry, Sandoz and Rovi are recording growth thanks to generic and specialized drugs, suggesting that defensive sectors, alongside defense, are becoming a safe haven for capital in 2026. „Our operational agility and strong demand for defence technologies allowed us to beat 2025 guidance.” — CEO of the Italian defense conglomerate Leonardo

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