(BFM Stock Exchange) – The two defense groups outperform the market and their sector this Monday, July 14 after the President of the Republic announced 3.5 billion euros in additional expenses for 2026 and 3 billion euros for 2027.

Thales and Dassault Aviation know, each, two enviable increases on the Paris Stock Exchange, this Monday, July 14. The first wins 1.2% at the start of the afternoon, signing the second highest increase in a 40-stone CAC (-0.3%). The second takes 2.1%.

The two actions outperform both the market and their sector, since the other European defense actions are experiencing more anonymous developments. In Frankfurt, Rheinmetall took 0.4% while London Ba Systems gained 0.5%.

Thales and Dassault Aviation can be supported by the announcements of the French president, Emmanuel Macron. The tenant of the Élysée said on Sunday that 3.5 billion euros in additional military military spending would be scheduled in the budget for 2026 and then again 3 billion euros in 2027. The defense budget will have doubled in ten years at this last deadline.

“An updating of the military programming law” for 2024-2030 “will be presented in the fall, said the head of state in his traditional speech to the armies.

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The two most exposed titles

In addition, Emmanuel Macron said “to refuse” that this “new and historic effort” is funded by “debt”. The chief of the executive mentioned “more activity and more production” to find the money necessary for these expenditure increases.

Emmanuel Macron put forward “the effort of the whole nation”. “A punctual effort of all, we must spend more on our defense and that everyone takes their share in this investment,” he developed.

The President of the Republic said that details would be delivered Tuesday by the Prime Minister, François Bayrou, as for the resources to finance these “efforts”.

Emmanuel Macron explained that additional expenses would be used to “fill our fragility areas”, evoking the stocks of ammunition, “saturation weapons and precision weapons”, drones, “spatial capacities”, but also the “equipment necessary on a daily basis so that operations are carried out”.

In a short note published Monday morning, Jefferies bank calculates that Emmanuel Macron’s announcements would represent an increase, compared to the spending trajectory included in the current military programming law, 7% in 2026 and 11% in 2027. “Over one year it would represent a growth of 13% in 2026 and 11% in 2027”, she continues.

Jefferies is waiting to have more details before drawing great conclusions on the actions it covers. However, the bank believes that Thales and Dassault Aviation are the “potential key winners” of these announcements.

The first derives approximately 22% of its defense income in France, the second around 32%, explains Jefferies, who specifies however that this proportion has evolved significantly at Dassault in recent years

A fit sector

Jefferies also believes that, to a lesser extent, Safran, Airbus, Leonardo and Bae Systems could also benefit from these announcements.

Recall that the defense sector has been on the rise since the start of the year. Thales wins 83% and is at the shoulder-to-goad with Société Générale to sign href = “https://www.tradingsat.com/sbf-120-fr000399481/actualites/sbf-120-quelles-actions-du-sbf120-montet-et-chutent-le-plus-sur-lamiere-partie-de-2025-1141552.html#”>The strongest increase in CAC 40 over the entire 2025. Dassault Aviation takes 56% over the same period. The German Rheinmetall won 200.7%.

Defense groups have been powered by multiple advertisements of military budgets in Europe. Under pressure from the United States, which is now much less inclined to ensure the security of the old contains, Europe has decided to rearm. For example, Germany has announced hundreds of billions of euros in defense.

In June, NATO member countries undertook to invest 5% per year of their GDP in defense spending by 2035, against a previous target of 2%.

“We believe that this 5% target by 2035 could represent an annual increase of approximately $ 2,000 billion in NATO defense expenses, an average annual growth rate of around 8% between 2024 and 2035,” calculated Royal Bank of Canada.