In 2025 the foremost European protection teams are heading in direction of report shareholder remuneration, equal to round 5 billion {dollars}, the best within the final decade and pushed above all by the rise in dividends.
According to an evaluation by Vertical Research Partners for the Financial Times, the expansion in returns is accompanied by a strengthening of investments: since earlier than the beginning of the Russian invasion of Ukraine, the share of revenues allotted to capital expenditure and analysis and improvement is estimated to have elevated from 6.4% to 7.9%.
In the United States the dynamic is completely different. After peaking in 2023, shareholder returns of main protection corporations declined, and funding additionally noticed a slight decline. The sector has come below fireplace on suspicion of favoring share buybacks over manufacturing: Donald Trump urged contractors to take a position extra, whereas Treasury Secretary Scott Bessent spoke of corporations “seriously behind in deliveries” and known as for “a little more research and a little less share buybacks”.
According to Vertical Research, nonetheless, the concept US trade is underinvesting or “overprofiting” is “not supported by facts”: “stock repurchases and dividends, as a share of market capitalization, have nearly halved over the past two years.”
https://www.ilsole24ore.com/art/difesa-europea-dividendi-record-5-miliardi-mentre-usa-frenano-investimenti-AIKNfXc