Germany’s protection sector is rising as rising geopolitical tensions have led to a surge in orders. The worth of German army exports hit 13.2 billion euros ($15.5 billion) final yr, in keeping with preliminary figures — greater than double 2020’s 5.82 billion euros . Protection shares within the nation have skyrocketed over the previous yr as the federal government handed a historic fiscal package deal anticipated to spice up protection and infrastructure spending even additional. Shares of Germany’s largest protection firm Rheinmetall , as an illustration, are up greater than 260% during the last 12 months, whereas Hensoldt’s are 168% greater. RHMB-FF .GDAXI 1Y mountain Rheinmetall vs. Dax So, the place — precisely — are the file orders going? Nation breakdown Based on the German authorities’s most up-to-date export log , 80% of arms exports have been to “shut associate nations” throughout the first quarter of 2025. These embody nations inside the EU and past, together with Japan, Switzerland, Australia, New Zealand, South Korea, Singapore and Ukraine. The remaining 20% of exports have been to “different third nations.” Germany’s Federal Ministry for Financial Affairs doesn’t title these, however advised CNBC that Qatar and Israel are main gamers on this class. Suppose tank SIPRI notes that between 2020-2024, Germany was the world’s fifth-largest exporter of main arms. Its three largest markets over the interval have been Ukraine (19%), Egypt (19%) and Israel (11%). SIPRI additionally reveals the varieties of main arms offered by German firms: over the previous 5 years, 41% have been ships, adopted by armoured automobiles at 16%, missiles at 11%, and engines at 9.5%. This is a take a look at a few of Germany’s largest protection firms by market cap — and the place their exports go. Rheinmetall Rheinmetall, which makes a speciality of weapons, ammunition and armored automobiles, is Germany’s largest protection firm and is deeply embedded within the European protection system. Based on the corporate’s 2024 annual report , simply over a 3rd of its gross sales have been home, with the remainder of Europe accounting for 46.6%, Asia and the Center East accounting for 9.6% of gross sales, the Americas 7.7%, and different areas (“above all Australia”) 5.8%. MTU Aero Engines MTU Aero Engines , which creates engines for civil and army plane, noticed a more-than 13% soar in income in its army division in 2024. A primary supply of gross sales was EJ200 engines that energy the Eurofighter Jet, utilized by European, Kuwaiti, Omani, and Saudi air forces . In a geographical breakdown of MTU’s 2024 revenues, which embody civil and army, North America accounted for 70% of gross sales. In second place was Germany, then Asia and the remainder of Europe. MTU’s army enterprise is usually centered on Germany and Europe, an organization spokesperson advised CNBC. Hensoldt Hensoldt went public in 2020 after spinning off from Airbus. A specialist in digital protection and sensor know-how, the CEO mentioned in his annual shareholder letter that the corporate continues to see sturdy demand amid the conflict in Ukraine, crises within the Center East and risk from China. “The demand is globally rising, however with a really excessive improve from Germany and Europe”, Hensoldt’s CFO Christian Ladurner advised CNBC earlier this yr. Breaking down Hensoldt’s 2024 income , 87.8% got here from Europe, 3.7% from the Center East, 3.5% from APAC, 2.6% from North America and a pair of.2% from Africa. Renk Augsburg-based Renk creates gearboxes for army automobiles, together with tanks and naval vessels. The corporate says it provides gear to over 70 land forces world wide, together with the EU, NATO, South Korea, India, and Israel and others. It additionally provides the marines of over 40 naval forces. In its 2024 annual report , complete income got here in at 1.14 billion euros. Germany accounted for 27% of gross sales, the U.S. 20% and South Korea 11%. Thyssenkrupp Marine Methods (TKMS) Industrial conglomerate Thyssenkrupp is Germany’s largest metal producer, and its subsidiary ThyssenKrupp Marine Methods is a serious participant in protection. Slightly below 30% of TKMS gross sales within the first half of this monetary yr have been to Germany, Austria, Switzerland and Liechtenstein, whereas an analogous quantity went to the remainder of Western Europe. South America accounted for 18%, and the Center East and Africa, 15%. Political controversy Germany’s rising function within the world arms commerce has not been devoid of controversy, nonetheless. Politicians have raised issues over the nation’s exports to Israel given allegations of human rights abuses in Gaza. Germany has traditionally been a staunch supporter of Israel given Germany’s function within the Holocaust. In Might , Germany’s International Minister Johann Wadephul appeared open to the concept of reviewing weapons exports to Israel, though he advised CNBC on the latest NATO summit that arms gross sales to Israel will proceed. German firms exporting to Israel embody TKMS, which constructed the Israeli Navy’s Sa’ar 6 frigates , and Renk and MTU , which provide elements for Israeli Merkava tanks. German exports to Ukraine have additionally been a supply of controversy. Since Russia’s’ full-scale invasion of Ukraine in 2022, Germany has been amongst Ukraine’s largest army backers . Backlash has come from each extremes of the political spectrum, nonetheless. The far-left BSW has known as for a halt to German army help of Ukraine , for instance, whereas Beatrix Von Storch, deputy chief of the far-right AfD advised CNBC she needs Germany to “cease delivering weapons, cease fueling the conflict.”