A Defensive Foursome

By Robbie Burns

PUBLISHED: Jan 07 2026 @ 05:08 | Comments (0) |

With a new year comes new energy!

I’ve gone back into the defence sector for gains for 2026.

I can’t say I am exactly thrilled about it, like you I’m sure we want world peace.

But it isn’t going to happen and it you think Putin is going to stay quiet in 2026 you are sorely mistaken.

Defence shares have been sold off after hopes of a peace deal in Ukraine.

But long term there is only one way, and that is up.

So I have bought a range of defence shares:

1. BAE Systems (LSE:BA.), the giant of the UK defence sector and a stalwart of the FTSE 100.

If you can only afford one, this is it! It doesn’t look overly expensive and this one could easily head up by 700 points in 2026.

2. MS International (LSE:MSI). My defence “tiddler”.

With a management pushing 80, this looks like a bid target for 2026 and any bidder is going to have to pay a lot.

It has some very good gun contracts over in the US.

A likely catalyst for near term gains is the dumping of its non core businesses which could raise some nice cash.

3. Chemring (LSE:CHG). A FTSE 250 company which specialises in sensors and countermeasures which is a nice niche area.

Profit forecasts are good here, together with a reduction in debt.

4. Qinetic (LSE:QQ.) – At just 13pe this one looks ripe for a re-valuation.

Operates across Europe the Mid East and Australisia. Worth more than £2bln and looks a likely candidate for gains in 2026.

Probably given its much smaller size MS International is the one with the biggest potential for sudden big gains.

However again because it is small it is higher risk if it doesn’t win new contracts.

So, while I hope for a peaceful world, for now I am afraid defence is where it’s at.

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