EU Defense stock is up 15% in a week; Here’s why

By: bitcoin ethereum news|2025/05/06 19:45:01

⚈ Company expects €300B in orders and reported strong sales and profit growth ⚈ Defense sector rallies broadly, with Rheinmetall outperforming peers like Leonardo and Dassault Much like during La Belle Époque , Europe has managed to keep the majority of its wars off the continent in the 21st century. However, the recent decision from the EU leadership has signalled concerns this might change, sending one German-South African defense stock soaring. Rheinmetall AG (ETR: RHM), the fifth-largest arms manufacturer on the continent, has seen significant equity market advancements in most time frames. Though the last 24 hours saw a downward correction of 2.40%, RHM stock remains 15.37% in the green in the weekly chart at its press time price of €1,588 (~$1,797). Why RHM stock is soaring Although multiple factors contributed to Rheinmetall’s rally, the latest and arguably the most impactful has been the European Union’s plan to spend €800 billion (~$905 billion) to remilitarize the continent, announced due to the combined fears of Russian aggression and American exit from joint security arrangements. The direct impact on the German-South African company can be seen from its CEO’s April comments that Rheinmetall sees the potential orders for its equipment reaching €300 billion (~$340 billion). Such an upsurge has helped push the arms manufacturer toward further gains after it recorded a remarkable 1,395% rally in RHM shares since Russia’s invasion of Ukraine started. The general strength of the business amidst the current developments was also evident in Rheinmetall’s latest preliminary earnings report, published on April 28. The arms manufacturer revealed a 46% rise in sales to €2.3 billion (~$2.63 billion) and a 49% rise in operating profit. Prominent analyst firms have also noted Rheinmetall’s recent success and potential for future growth. On May 2, Jefferies confirmed its previous ‘buy’ rating for RHM stock, and on May 5, UBS assigned the same recommendation while also setting the price target at €1,840 (~$2,084)—15.87% above the press time value. Lastly, the overall bullish picture was also reinforced by the recent expansion of the missile and rocket partnership between the German-South African company and the American military giant Lockheed-Martin (NYSE: LMT). Interestingly, the fortunes of Rheinmetall simultaneously demonstrate the power of brand recognition and national reputation. Other major European arms manufacturers have also rallied with Leonardo SpA (BIT: LDO) surging 84.57% to €48.10 (~$54.43) in 2025, and France’s Dassault Aviation SA (EPA: AM) rocketing 64.68% to €322.60 (~$365.07) year-to-date (YTD). However, the rise has not been as sharp as for Rheinmetall, which is up 165.07% within the same time frame, nor universal. Airbus (EPA: AIR), for example, despite also being a major defense company, is down 3.21% since the year started and is changing hands at €155 (~$175.41). Featured image via Shutterstock Source: https://finbold.com/eu-defense-stock-is-up-15-in-a-week-heres-why/

On March 4, 2026, DDC Enterprise Limited (NYSE American: DDC) today announced preliminary, unaudited full-year financial performance for the year ended December 31, 2025. The company expects to achieve record revenue and record positive adjusted EBITDA, primarily driven by continued growth in its core consumer food business and overall margin improvement. The final audited financial report is expected to be released in mid-April 2026.

2025 Full-Year Financial Highlights

Revenue: Expected to be between $39 million and $41 million, reaching a new company high.

Organic Growth: Excluding the impact of the company's strategic contraction of its U.S. operations, core revenue is expected to grow 11% to 17% year over year.

Gross Profit Margin: Expected to be between 28% and 30%, reflecting continued operational efficiency improvements.

Adjusted EBITDA: The company expects to achieve a positive full-year result in 2025, a significant improvement from a $3.5 million loss in 2024, mainly due to rigorous cost controls and a higher-margin sales mix.

Core Consumer Food Business Performance

In 2025, DDC's core consumer food business maintained strong operational performance.

The company also disclosed Core Consumer Food Business Adjusted EBITDA, a metric that further excludes costs related to its Bitcoin reserve strategy and non-cash fair value adjustments related to its Bitcoin holdings from adjusted EBITDA to more accurately reflect the core business performance.

In 2025, Core Consumer Food Business Adjusted EBITDA is expected to be between $5.5 million and $6 million.

Bitcoin Reserve Update

In the first half of 2025, DDC initiated a long-term Bitcoin accumulation strategy, holding Bitcoin as its primary reserve asset.

As of December 31, 2025: The company holds 1,183 BTC.

As of February 28, 2026: Holdings increased to 2,118 BTC

Today's additional purchase of 65 BTC brings the company's total holdings to 2,183 BTC

DDC Founder, Chairman, and CEO Norma Chu stated, "We are proud to have closed 2025 with record revenue and positive adjusted EBITDA, demonstrating the steady growth of the company's consumer food business and the ongoing improvement in profitability. We are building a disciplined, growth-oriented food platform and strategically allocating capital to Bitcoin assets with a long-term view, aligning with our core beliefs. We believe that this dual-track model of 'Steady Consumer Business + Strategic Bitcoin Reserve' will help DDC create lasting long-term value for shareholders."

Adjusted EBITDA Definition
For the full year 2025, the company defines "Adjusted EBITDA" (a non-GAAP financial measure) as: Net income / (loss) excluding the following items:· Interest expense· Taxes· Foreign exchange gains/losses· Long-lived asset impairment· Depreciation and amortization· Non-cash fair value changes related to financial instruments (including Bitcoin holdings)· Stock-based compensation

About DDC Enterprise Limited

DDC Enterprise Limited (NYSE: DDC) is actively implementing its corporate Bitcoin Treasury strategy while continuing to strengthen its position as a leading global Asian food platform.

The company has established Bitcoin as a core reserve asset and is executing a prudent, long-oriented accumulation strategy. While expanding its portfolio of food brands, DDC is gradually becoming one of the public company pioneers in integrating Bitcoin into its corporate financial architecture.

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DDC Enterprise Limited Announces 2025 Unaudited Preliminary Financial Performance: Record Revenue Achieved, Bitcoin Treasury Grows to 2183 Coins