Aselsan Leads Global Defense Stock Surge as Military Spending Soars

Global defense and aerospace stocks are rallying sharply as governments pour unprecedented sums into military modernization and rearmament programs. Türkiye’s ASELSAN, the country’s largest defense electronics manufacturer, has emerged as one of the standout performers of 2025 — a symbol of both investor confidence and Ankara’s growing ambitions in defense technology.

The wave of spending follows a series of geopolitical shocks — from Russia’s ongoing war in Ukraine to rising tensions in the Indo-Pacific — prompting NATO and allied nations to commit to steep, long-term increases in defense budgets. Earlier this year, NATO leaders agreed to raise defense spending targets to 5 percent of GDP by 2035, a decision that sent a powerful signal through financial markets.

Global Defense Rally

Investors have responded decisively. Over the first nine months of the year, defense stocks have vastly outperformed broader market indices. South Korea’s Hanwha Aerospace surged 239 percent, Germany’s Rheinmetall climbed 221.9 percent, and ASELSAN advanced 196.6 percent. Sweden’s Saab gained 145.8 percent, followed by Rolls-Royceat 109.3 percent, Italy’s Leonardo at 108.3 percent, and BAE Systems at 79.3 percent.

Analysts say the rally reflects not only higher spending but also a strategic shift — Western and allied governments are prioritizing self-sufficiency in arms production, long-term procurement contracts, and new investment in dual-use technologies.

ASELSAN’s Record Run

For ASELSAN, the rally has been transformative. The company became the first listed firm on Borsa Istanbul to surpass a ₺1 trillion ($30 billion) market capitalization, cementing its position as the highest-valued stock in the BIST 100 index.

Founded in 1975 as part of Türkiye’s post-embargo push for defense independence, ASELSAN today produces advanced radar, electronic warfare systems, communication networks, and avionics. Its leadership has set an ambitious goal: to rank among the world’s top 30 defense companies by 2030.

“ASELSAN’s rise is not just a market story — it’s a reflection of Türkiye’s evolving industrial strategy,” said a defense industry analyst in Istanbul. “The company is increasingly seen as a cornerstone of national defense policy and an export driver for Ankara’s growing regional influence.”

Mixed Results Across Turkish Defense Firms

While ASELSAN dominates, other Turkish defense stocks have shown mixed results. Papilon Savunma gained 26.2 percent, Otokar rose 5.8 percent, and Onur Yüksek Teknoloji remained flat. SDT Space and Defense fell 3.1 percent, while Altınay Defense declined 11.8 percent.

Analysts expect continued volatility in the short term but strong structural support for the sector overall, as defense orders accelerate and export contracts expand across Africa, the Middle East, and Eastern Europe.

“Investors are beginning to treat defense not as a cyclical play, but as a structural growth story,” said the same analyst. “And ASELSAN is now a central figure in that global narrative.”