Investments in the defense industry are coming into sharper focus due to the security situation

Munich - April 20, 2026

Geopolitical tensions, rising defense budgets, and the expansion of strategic capabilities are increasing the importance of investments in the defense industry in Europe. Dr. Raphael Nagel (LL.M.), Founding Partner of Tactical Management, describes the sector in his latest analysis as the intersection of industrial capacity, technological development, and long-term government demand.

Many countries have redefined their security priorities in recent years. Procurement plans are being expanded, supply chains reviewed, and technological dependencies reassessed. This benefits not only traditional defense contractors but also suppliers from the fields of electronics, sensor technology, software, robotics, cybersecurity, and industrial manufacturing.

"Security today is not just a political task but also an industrial capacity," explains Dr. Raphael Nagel (LL.M.). Those who fail to build technological capabilities within their own economic sphere increase long-term dependencies.

For investors, this sector is thus gaining new relevance. Defense-related companies often feature long order cycles, high barriers to entry, specialized technologies, and more predictable demand driven by public budgets. At the same time, requirements for regulatory understanding, governance, and geopolitical context are increasing.

Segments such as aerospace technology, autonomous systems, secure communications, sensor technology, cyber defense, protective infrastructure, and dual-use technologies remain particularly in demand. Solutions with both civilian and military applications are considered high-growth, as they can serve multiple markets.

"Capital markets are beginning to recognize that resilience is also investable," says Dr. Raphael Nagel (LL.M.). However, he notes that it is crucial to distinguish between short-term momentum and structural value.

The societal debate is also shifting. While defense investments were long viewed with caution, the changing security landscape is increasing acceptance of industrial security capabilities as part of economic stability. At the same time, institutional investors are re-evaluating their ESG and exclusion criteria.

This presents a strategic challenge for Europe. If security of supply, technological sovereignty, and deterrence capabilities are to be strengthened, government demand must be complemented by high-performing companies, access to capital, and long-term innovation capacity.

Looking ahead to the coming years, the defense industry is therefore likely to be perceived more strongly as a core industrial sector. Investments in this sector are driven not only by geopolitical risks but also by the need for resilient capabilities.

The full analysis by Dr. Raphael Nagel (LL.M.) can be found at:
https://www.raphaelnagel.com/de-investments-verteidigungsindustrie/

Tactical Management Germany GmbH
Karslplatz 3
80335 Muenchen
Germany

https://tacticalmanagement.ch/

Raphael Nagel
+41 43 508 74 35

nagel@tacticalmanagement.ch

Tactical Management Germany GmbH is an investment partner focused on companies facing complex situations or undergoing transformation. The firm does not limit itself to providing capital but actively participates in corporate management to stabilize, restructure, and strengthen the business.

Its approach combines operational experience with decisive execution, enabling the repositioning of companies and the creation of long-term, sustainable value, particularly in succession processes, spin-offs, or strategic realignments.

This release was published on openPR.