The European stock market in 2024 delivered some remarkable stories of transformation, innovation, and resilience.
ADVERTISEMENTLeading the charge were companies that capitalised on sector-specific trends such as the green energy transition, defence spending, and a resurgence in travel and technology.
Here’s how the year’s top performers within European large-cap companies achieved their stellar results.
10. SAP SE
SAP SE, the German enterprise software leader, posted a 71.56% year-to-date gain through Christmas 2024, driven by strong growth in its cloud business.
Cloud revenue rose by over 30% year-on-year, with robust demand for its S/4HANA Cloud platform.
SAP’s integration of generative AI into its software offerings and strategic acquisitions of niche AI startups further cemented its position as a leader in enterprise software innovation.
9. Leonardo S.p.A.
Leonardo S.p.A., the Italian aerospace and defence giant, achieved a 72.41% return so far in 2024. Increased defence budgets across Europe drove demand for Leonardo’s military technologies, including record orders for helicopters. The company’s cybersecurity division also saw significant growth, reflecting heightened global concerns over digital threats.
8. argenx SE
argenx SE, a Belgian biotech firm, delivered a strong 76.01% year-to-date return, thanks to the continued success of Vyvgart, a blockbuster treatment for autoimmune diseases. Robust sales in the US, Europe, and Japan drove revenue growth, while positive clinical trial results for its pipeline drugs reinforced optimism about the company’s future prospects.
7. NatWest Group
NatWest Group, one of the UK’s largest banks, has gained 82.22% year-to-date. Rising interest rates in the UK and Europe significantly improved the bank’s net interest margins, while cost-cutting initiatives and strong growth in mortgage lending and personal banking deposits bolstered its financial performance.
6. Rolls-Royce Holdings
Rolls-Royce Holdings continued its impressive run with a 92.06% year-to-date gain. The aerospace giant benefitted from the rebound in international travel, which boosted demand for wide-body aircraft engines. Rolls-Royce also streamlined its operations by exiting non-core projects, such as its electric flying taxi venture, and reinstated dividends to signal its financial health to investors.
5. International Consolidated Airlines Group
ADVERTISEMENTInternational Consolidated Airlines Group (IAG), the parent of British Airways and Iberia, saw its stock rise by 94.52% so far this year, as global passenger travel surged back to pre-pandemic levels.
The company leveraged strong demand for transatlantic and European routes, combined with its rollout of fuel-efficient aircraft, to improve profit margins.
Additionally, IAG strategically expanded its market presence by acquiring additional airport slots in high-demand cities like London and New York.
4. Rheinmetall AG
ADVERTISEMENTRheinmetall AG, a German defence company, posted a 115.89% gain this year, benefitting from a sharp increase in European defence budgets amid ongoing geopolitical conflicts. The company secured multi-year NATO contracts and expanded its ammunition production capabilities, positioning itself as a key supplier for Europe’s growing security needs.
3. UCB SA
UCB SA, a Belgian biopharmaceutical company, achieved a 140.05% year-to-date increase, propelled by groundbreaking developments in its drug pipeline. The US FDA’s approval of its neurological treatment was a significant milestone, complemented by strong sales of new immunology therapies launched in the US and EU. Investor sentiment was further buoyed by promising late-stage trial results for several pipeline drugs.
2. Kongsberg Gruppen ASA
ADVERTISEMENTKongsberg Gruppen ASA, a leader in defence and maritime systems, has delivered a remarkable 177.40% return year-to-date.
The company capitalised on surging demand for its missile systems and defence technologies, driven by geopolitical tensions in Eastern Europe.
Its expansion into autonomous maritime systems further cemented its position as a leader in innovative technologies, resulting in record-breaking revenues.
1. Siemens Energy AG
ADVERTISEMENTSiemens Energy AG is the undisputed top performer of 2024, with a staggering year-to-date return of 326.00% by Christmas.
After resolving significant wind turbine quality issues that had plagued its performance in 2023, the company restored investor confidence by winning record contracts for renewable energy and hydrogen projects.
Siemens Energy also navigated concerns over insolvency earlier in the year, securing government-backed guarantees to stabilise its financial position.
Lessons from 2023: Can winners repeat?
History suggests that sustaining stellar performance over consecutive years is a rare feat.
ADVERTISEMENTAmong 2023’s top-performing stocks, only Rolls-Royce Holdings and Leonardo S.p.A. managed to maintain their positions in 2024’s top 10.
Rolls-Royce gained 92.06% year-to-date, building on a 221.57% surge in 2023, driven by aerospace recovery and streamlined operations. Similarly, Leonardo rose 72.41%, following its 87.64% gain in 2023, supported by increased defence spending and cybersecurity demand.
However, 2025 brings a host of challenges that could reshape market dynamics. The second term of Donald Trump’s presidency raises the risk of U.S. trade tariffs on European goods, adding pressure to an already struggling automotive sector. German and French elections, European Central Bank rate cuts, and the Russia-Ukraine conflict entering its third year will further shape market responses.
In this complex environment, adaptability will be crucial. Emerging opportunities in green energy, AI, and defence technology are likely to drive the next wave of winners.
ADVERTISEMENTCompanies that can navigate geopolitical risks and capitalise on evolving trends will be best positioned to thrive.
For investors, diversification and a focus on long-term resilience remain essential.