2025 has created a clear picture on the stock markets. Investors are looking for stability and political predictability – and they find it in Germany primarily in three individual titles, each of which has more than doubled within twelve months. Armament, energy and finance are the dominant themes in a year in which geopolitical uncertainty and strategic realignment shaped the markets. The top performers Rheinmetall, Siemens Energy and Commerzbank reflect these tectonic shifts.
The DAX winners
Top 1: Rheinmetall, the upgrader (plus 151 percent)
The Düsseldorf-based arms company is once again the high flyer on the German stock exchange. The continuing increase in European countries’ need for military equipment as well as the billion-dollar orders from the EU and NATO have raised the arms manufacturer’s price to a record level. The group benefits like no other from the fact that Europe is massively rearming after years of hesitation. With a market value of around 72 billion euros, Rheinmetall is a DAX heavyweight. Europe invested in 2025 With around 180 billion dollars, even more than the USA for armaments.
At the same time, however, it is clear that Europe’s defense industry is structurally too weak: it is fragmented, invests too little in research and development and can only produce complex weapon systems such as modern missiles, air defense or drones to a limited extent. Joint European defense projects are making slow progress, and lengthy procurement processes are preventing rapid production expansions, as The Economist recently reported.
In addition, there are not yet enough innovative start-ups in Europe that are advancing technologies such as drones or satellites. Although there is first European success stories like Helsing or Quantum Systems
, but it takes more capital to make such companies big. Without significantly more cooperation, consolidation, risk-taking and investment, Europe will remain dependent on US weapons despite increasing military spending: Germany and France therefore drive one IPO of the German-French arms company KNDS
ahead (arisen from Krauss-Maffei and Nexter). The company should be modeled after airbus to be built into a champion of the European defense industry – and should then become a powerful competitor to the DAX high-flyer Rheinmetall.
Top 2: Siemens Energy, the resurrected one (plus 140 percent)
Siemens Energy will achieve this in 2025 “Turnaround from the crisis”
. After years of Turbulence surrounding the wind power subsidiary Gamesa, supply chain problems and special burdens, the group has made a comeback. The political focus on security of supply also plays into Siemens Energy’s hands. Investments in network expansion, electricity infrastructure and green energy provide a boost.
In addition, Siemens Energy shares are considered one of the “AI winners” from the Dax because the company from the extreme demand for AI data centers benefits. Studies expect a capacity increase of 50 percent between 2024 and 2027. The result: The company’s market value has risen above the 120 billion euro mark – a comeback that hardly anyone thought possible two years ago.
Top 3: Commerzbank, the fighter (plus 130 percent)
The third newcomer comes from an industry that has long been considered a problem: banks. Commerzbank benefited this year from higher interest rates, an improved capital base and austerity measures. For years, investors had ignored the European banking sector – but since the beginning of the year, the large pension funds have also increased their investments in the sector again.
However, the takeover interest of the Italian UniCredit also provided the decisive price boost. Bank boss Andrea Orcel (62) is serious about the much-announced consolidation in the European banking sector and has steadily expanded UniCredit’s share in Commerzbank since 2024.
A private meeting with the then Commerzbank CEO Manfred Knof (60) should help to make the federal government friendly. But shortly afterwards Knof had to leave and Bettina Orlopp (55) took over. Orlopp rejects Orcel’s takeover plans since then resolutely
, supports the share price with tough austerity programs and a billion-dollar buyback. They consider a high valuation to be the best protection against takeover plans. With its price gains, the share has become the strongest bank stock of the year. With a market value of around 36 billion euros, Commerzbank is now valued higher than it has been since the financial crisis.
The DAX losers
Flop 1: Symrise, the scented candle (minus 32 percent)
The fragrance and flavor manufacturer Symrise has become the problem child of the Dax this year and is bringing up the rear in the Dax. The company struggled with a combination of weak demand, rising costs and disappointing strategic developments. Things were particularly problematic in the nutrition division, which was long considered a growth engine but has now become a brake. Pet food was weakening, customers were reducing inventories and there was overcapacity in several markets.
At the same time, Symrise was hit hard by increased raw material prices. Many key ingredients – from vanilla to citrus oil – became more expensive, but the company was only able to pass some of these costs on to its customers. That squeezed margins. Additionally, some acquisitions in recent years have not delivered the expected results and returns have lagged behind previous promises. A series of negative forecasts was particularly significant. Symrise had to adjust its sales and margin expectations downwards several times – an alarm signal in a stock market year in which many DAX companies posted double-digit profits.
Flop 2: Adidas, the customs loser (minus 30 percent)
The one after Nike The second largest sporting goods manufacturer in the world is next to the automobile manufacturer Volkswagen, BMW and Mercedes Benz to the DAX 40 companies that are most affected by the customs policy of Donald Trump (79) suffer. Adidas is expected to end 2025 with record sales, but the burden of US tariffs means that this will hardly be reflected in profit growth.
After all, Adidas under former Puma CEO Bjørn Gulden (60) approached the 10 percent operating profit margin mark again in the second half of the year. When Gulden took over from his predecessor Kasper Rørsted (63) around three years ago, he initially had to report losses. Almost the entire board has now been replaced, the restructuring phase has been completed and expectations have risen significantly again.
However, the burden of US tariffs will increase in 2026, Gulden recently warned. The question remains open as to how the tariffs will have an indirect impact – for example through lower purchasing power due to rising inflation or through possible discount battles in retail. After the share price fell by around 30 percent in 2025, Adidas still has a market value of around 30 billion euros. Competitor Nike has also lost almost a third of its market value in the past year, but is still more than twice as expensive as Adidas from Herzogenaurach.
Flop 3: Zalando, the long decline (minus 25 percent)
The share of Zalando started the year 2025 brilliantly, but since mid-February things have been steadily declining. The share is now hovering around the 25 euro mark again, the lowest level in three years. In the Corona summer of 2021, the shares of the largest online fashion retailer in Europe were still quoted at around 100 euros.
But for three years in a row, Zalando has been struggling with a difficult environment in online retail. Discount battles, tariffs and customer reluctance are slowing down business. Although Zalando expects sales of more than 12 billion euros for the coming year, profit growth remains clear – also because the Germans are European champions when it comes to returns and the returned items mean high costs.
More on the topic
In the summer, Zalando took over the smaller competitor About You. In order to stop the share’s downward trend, efficiency gains, synergies and growing customer demand are needed.