3 European Defense Stocks With Export Exposure as the Euro Hits a 17 Month Low

French streets are filling with student riots, bond markets are testing France’s fiscal resolve, and the euro has slid to a 17 month low against the dollar. That mix is shaking local confidence, yet it is also reshaping the playing field for large European exporters that report a big share of revenue abroad. This article walks through three stocks from our Export Oriented European Large Cap screener that could be meaningfully exposed to these cross currents.

The three exporters highlighted below are only a starter pack, with the wider screen turning up 38 more European large caps whose international footprints and balance sheets tell equally compelling stories. To size up that full field for yourself, head straight into the Export-Oriented European Large-Cap Stocks screener to identify, filter, and analyze the export plays that best fit your own conviction.

Saab (OM:SAAB B)

Saab is a Nordic defense and aviation group that fits the export oriented theme because it sells complex systems into multiple regions while much of its cost base remains in Sweden, giving the business meaningful exposure to currency moves and global defense budgets.

Saab AB develops aircraft, missile systems, sensors, submarines and defense services across Aeronautics, Dynamics, Surveillance, Kockums and Combitech, which together generated roughly SEK 103.2b in segment revenue, while the group is valued at about SEK 336.5b by the market.

"The significant ramp-up in global defense spending, especially following the recent NATO commitment for member states to target 5% of GDP by 2030 to 2035, directly supports sustained demand for Saab's advanced defense solutions."

What really matters from here is how one pressure on Saab’s future mix of high-end exports ultimately feeds through to margins and cash generation.

To see how those export heavy cash flows, contract visibility and capital needs fit together, read the full narrative for Saab for the next phase of Saab's story.

Leonardo (BIT:LDO)

Leonardo is another export heavy defense and aerospace group in this screen, with a broad industrial footprint that stretches from helicopters and aircraft to cyber security, electronics and space systems. Those global activities are what the next quote is really about.

Leonardo S.p.a. is a €27.9b Italian defense and aerospace group spanning helicopters, aeronautics, defense electronics, cyber and security solutions, and space operations, with Defence Electronics & Security at €9.1b and Helicopters at €5.9b of revenue anchoring its export focused profile.

"The company is poised to benefit from accelerating global defense spending and heightened geopolitical instability, particularly in Europe and among NATO countries, as highlighted by robust order growth (9.7% YoY) and increased guidance for future order intake and revenues."

The real swing factor for Leonardo is how one pressure inside its portfolio ultimately filters through into long term margins and cash generation.

That hinges on how resilient its order engine really is. This is exactly what the full narrative for Leonardo unpacks with scenarios, risk pockets, and underappreciated upside.

thyssenkrupp (XTRA:TKA)

thyssenkrupp is a German industrial group tightly linked to the export theme, supplying engineered products and services worldwide across Materials Services at about €11.9b revenue, Steel Europe on €9.6b, Automotive Technology on €6.8b, Marine Systems on €2.5b and Decarbon Technologies on €3.0b, with the stock valued at roughly €8.5b.

For an export-focused investor, thyssenkrupp offers a different angle to the defense-heavy names above, because it ties euro weakness directly into heavy engineering, steel and complex industrial projects sold around the world.

"Record order backlog in Marine Systems, driven by large submarine/service contracts and defense modernization trends, positions the segment for sustained revenue growth and earnings visibility, especially as geopolitical tensions support long-term demand for naval solutions."

What really matters now is how one unresolved pressure inside that broader portfolio shapes the gap between order intake, profitability and cash generation.

That portfolio pressure is exactly where the full narrative for thyssenkrupp brings together how thyssenkrupp’s backlog, restructuring efforts and export exposure could be masking both risk and upside inflection points.

Curious About Alternative Stock Paths

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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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