European Defense Stocks With Long Term Order Book Support

European defense contractors are back in focus after Canada selected Thyssenkrupp Marine Systems as its preferred partner for a submarine program valued at up to $100b, while Hanwha Ocean shares dropped 23% on the lost bid. For investors watching how long dated defense contracts can reshape company order books and revenue visibility, this news is a useful filter. This article looks at 3 stocks from a European Defense Contractors screener that are directly exposed to the headlines, examining how this decision could influence their risk and return profile so you can decide whether they deserve a closer look or a wider berth.

Overview: Fincantieri is a global shipbuilder based in Italy that designs and constructs everything from cruise ships and ferries to submarines, aircraft carriers, frigates and other naval vessels, as well as providing lifecycle services, refits and marine technologies. The company also supplies systems for automation, cyber security, communication and critical infrastructure, giving it a broad role across both civilian and defense marine projects.

Operations: Fincantieri generates most of its roughly €9.2b in revenue from Shipbuilding (€6.6b), Offshore and Specialized Vessels (€1.4b), Systems, Components and Infrastructure (€1.3b) and Underwater (€0.7b), with €7.2b coming from abroad and €2.0b from Italy.

Market Cap: €4.33b

Investors looking at European defense contractors may find Fincantieri interesting because it sits at the crossroads of rising naval demand, a growing cruise ship backlog and a push into higher value underwater and systems work. The recent Canadian submarine decision highlights how NATO aligned shipbuilders, including Fincantieri, could see more attention as governments look for trusted long term partners. Orders such as Princess Cruises’ three LNG powered ships also illustrate the long duration of many commercial contracts. At the same time, high debt levels, complex long cycle projects and a relatively new board mean execution and governance remain important areas to monitor. The balance of recent earnings trends, valuation and defense exposure is a key consideration for investors evaluating Fincantieri.

Fincantieri’s mix of cruise backlogs, underwater projects and complex naval work can make the story feel crowded, and the real signal often sits inside the 3 key rewards and 1 important warning sign

Overview: Plejd is a Swedish technology company that makes hardware and software for smart lighting, heating and window coverings, allowing homes and commercial buildings to control dimmers, relays, drivers, sensors and shutters through connected devices and gateways.

Operations: Plejd generates revenue of about SEK 1,130.9m from Electronic Security Devices across markets including Sweden, Norway, Finland, Germany and the Netherlands.

Market Cap: €12.42b

Plejd sits at the intersection of electrification and connected buildings, and the current focus on European defense and infrastructure spending could keep attention on suppliers tied to Thyssenkrupp AG, which trades in Germany under the same ticker. Analysts expect Plejd’s earnings to grow close to 30% a year, supported by Q1 2026 results that show rising revenue, net income and EPS. A return on equity of 26.9% and a 19.4% profit margin point to an efficient business model. The catch is that the stock trades on a rich P/E multiple and relies entirely on external borrowing for funding, which raises financial risk. For investors willing to pay up for growth, the key question is whether Plejd’s quality and momentum justify that premium.

Plejd’s fast growing earnings, high return on equity and premium P/E hint at a story that is still unfolding. The analyst forecasts for Plejd could show whether that optimism masks one crucial twist.

Overview: Colt CZ Group is a Prague based firearms manufacturer that produces pistols, rifles, grenade launchers, ammunition and tactical gear for military, law enforcement and civilian customers worldwide under brands such as Colt, CZ, Colt Canada and Sellier & Bellot.

Operations: Colt CZ Group generates most of its revenue from Firearms and Accessories of about CZK 13.1b and Ammunition of about CZK 11.8b, with smaller segment adjustments and eliminations.

Market Cap: CZK 58.6b

Colt CZ Group provides direct exposure to European and NATO defense spending, with firearms and ammunition sales across the Czech Republic, the US and wider Europe. The company has reported strong recent earnings momentum and improving profit margins. The stock currently appears attractively valued relative to many Aerospace & Defense peers, even though earnings grew 54.8% over the past year and are forecast to grow strongly over the next few years. This combination is uncommon for a business tied closely to the defense thematic. On the other hand, there is meaningful balance sheet and governance risk, including high debt levels and no independent directors. The key consideration for investors is whether that risk profile is fully reflected in the current price.

Colt CZ Group’s earnings momentum and apparently low valuation could be telling a very different story to the headline risks. The 4 key rewards and 2 important warning signs might reveal what the market is still missing.

The three stocks covered here are only a starting point, and the full European Defense Contractors screener surfaces 35 more large European defense companies with equally compelling stories behind their numbers. Use Simply Wall St to identify and analyze the specific catalysts and narratives that matter most to you so you can focus on the highest conviction ideas in this space.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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