Gina Rinehart, Australia's richest person, has made a significant investment in the defence industry. She's bought into some of the world's largest defence companies, including RTX, Northrop Grumman, L3Harris Technologies, and Lockheed Martin. This investment is worth almost $US100 million, which is approximately $140 million in Australian dollars.

But what's behind this move? It's not just about Rinehart's personal interests. The defence industry is experiencing a significant shift. This shift is driven by government spending, technological advances, and growing uncertainty in global security. As conflicts persist in Europe and the Middle East, and tensions remain high in Asia, governments are increasing their military expenditure.

Global military spending reached a peak of $US2.9 trillion in 2025. This marks the 11th consecutive year of growth.

The surge in defence spending is largely driven by Europe. Military spending has surged to record levels in Europe. NATO members have agreed to lift the alliance's long-term defence spending target from 2% of GDP to 5% by 2035. This increase in spending is expected to benefit defence companies. It makes them an attractive investment opportunity. Rinehart's investment in US defence companies is a strategic move. She's considering the growing demand for defence products and services.

Rinehart's private company, Hancock Prospecting, has disclosed holdings in major US defence contractors. This investment is an example of the growing recognition among investors that defence is evolving into a long-term opportunity. It's not just a short-term geopolitical trade. Defence stocks have historically outperformed the broader index during periods of major global conflict. For instance, during the 12 months following the start of the Iraq War in 2003, defence stocks in the S&P 500 outperformed the broader index.

They didn't underperform.

The nature of warfare is changing. There's a growing focus on modern defence spending. The conflict in Ukraine has demonstrated how relatively low-cost drones can reshape battlefields. They force governments to rethink procurement priorities. Military budgets are increasingly shifting towards autonomous systems, cybersecurity, artificial intelligence, missile defence, and counter-drone technologies.

This technological shift is creating opportunities. It's not just for longstanding defence contractors, but also for companies involved in advanced software, sensors, robotics, and next-generation communications.

Gina Rinehart's investment in US defence companies is a significant move. She's a mining billionaire. She's the chairman of Hancock Prospecting, a company founded by her father, Lang Hancock. Rinehart has been instrumental in growing the company's iron ore business. She's made herself one of the richest people in Australia.

Her investment in defence companies marks a diversification of her portfolio. It reflects her ability to adapt to changing market trends. She won't limit herself to one industry.

The Australian defence industry is smaller compared to those in the US or Europe. However, it's becoming increasingly connected to global supply chains and technology partnerships. Programs tied to AUKUS, naval modernisation, and advanced missile capabilities point towards sustained defence investment over the coming decade. As the global defence industry continues to evolve, investors like Rinehart are taking notice. They're recognizing the potential for long-term growth and returns.

They don't expect short-term gains.

In Australia, the defence industry is expected to benefit from the government's increased spending on defence. The country's defence budget is expected to grow. It's driven by the need to modernise its military capabilities and address emerging security threats. As the defence industry continues to grow, it's likely that we'll see more investments like Rinehart's. Investors will seek to capitalize on the opportunities presented by this growing sector. They won't miss out on the potential gains.

  • Gina Rinehart has invested almost $US100 million in US defence companies.
  • Global military spending reached a peak of $US2.9 trillion in 2025.
  • The defence industry is experiencing a significant shift. It's driven by government spending, technological advances, and growing uncertainty in global security.
  • Europe's military spending has surged to record levels. NATO members have agreed to lift the alliance's long-term defence spending target from 2% of GDP to 5% by 2035.
  • The nature of warfare is changing. There's a growing focus on modern defence spending, including autonomous systems, cybersecurity, artificial intelligence, missile defence, and counter-drone technologies.

'Defence is unlike many cyclical sectors tied to consumer demand or business confidence. Revenues largely come from sovereign budgets and multi-year procurement contracts, which provide earnings visibility that can hold up even during periods of economic uncertainty.'

  • Billy Leung, senior investment strategist at Global X ETFs

As the global defence industry continues to evolve, it's clear that investors like Gina Rinehart are taking notice. With the potential for long-term growth and returns, it's likely that we'll see more investments in the defence sector in the coming years. The shift towards modern defence spending is driven by technological advances and growing uncertainty in global security. It's expected to continue, making the defence industry an attractive investment opportunity for those looking to diversify their portfolios. They won't regret it.

The defence industry won't stop growing anytime soon. It's a sector that's here to stay.