The DAX Index has rallied this year and is hovering near its all-time high. It has jumped by over 18% in 2025, a few points below the record high of €24,476. It is up by 27% from the lowest point this year. Let’s explore some of the best-performing companies in the German DAX Index.
Why the DAX Index has jumped
The German DAX Index has jumped this year, helped by the actions of the European Central Bank (ECB). Unlike the Fed, the ECB has been highly dovish this year as it slashed interest rates several times, bringing the official cash rate to 2%.
Historically, the stock market performs well when the central bank is slashing interest rates. For one, interest rate cuts lead to low bond yields, which push investors to the stock market.
The DAX Index has jumped as market participants reacted to more government spending in Germany. Its parliament voted in favor of a €500 billion spending increase, which will benefit most companies in the country.
Further, the index jumped because of the view that German stocks are highly undervalued compared to their peers. Despite its surge this year, the index has a price-to-earnings ratio of 15, much lower than the S&P 500 estimate of 21.
The best-performing DAX Index stocks are companies like Rheinmetall, Siemens Energy, Commerzbank, Heidelberg Materials, and Deutsche Bank.
Rheinmetall share price has soared by 183%
Rheinmetall stock price has been one of the best-performing DAX Index constituents in the past few years. It rose by 183% this year, 2,130% and $3,696% in the last five and ten years, respectively.
Rheinmetall has jumped because of the recent geopolitical events, like the war in Ukraine and the crisis in the Middle East. These events have led to a surge in defense spending, with Donald Trump pushing NATO members to increase their spending to 5% of their GDP. Such a move will benefit defense contractors like Rheinmetall and BAE Systems.
Siemens Energy (ENR)
Siemens Energy, a company that neared bankruptcy in 2023, has emerged as one of the best-performers in the DAX Index. Its stock has jumped by 83% this year and 277% in the last 12 months.
The company has done well because of its strong order intake and its balance sheet improvements. It recently exited the government guarantees and raised cash from 23 global lenders.
Siemens Energy has also become highly profitable and took its its Indian operations public.
Commerzbank (CBK)
Commerzbank stock price has jumped by 71% this year and by 88% in the last 12 months. This growth is primarily because of corporate actions by Unicredit, the giant Italian bank. Unicredit has continued to accumulate the stock, with the management not ruling out launching a full takeover.
Commerzbank’s business is also firing on all cylinders, with its operating result rising by 13% to a record high of €1.2 billion in the last quarter. The net result rose to €834 million, the highest point since 2011. Its revenue jumped by 12% to €3.1 billion even as interest rates fell.
Deutsche Bank, the biggest German bank, has also jumped by 51% this year as the turnaround efforts by Christian Sewing continued.
Heidelberg Materials (HEI)
The other top gainer in the DAX Index was Heidelberg Materials as its stock jumped by over 47% this year. This is notable because of its line of business, where it provides solutions like cement, aggregates, asphalt, and ready-mixed concrete. The company will benefit from the ongoing infrastructure spending.
Other DAX Index gainers
The other top performers in the German DAX Index are the likes of E ON, Fresenius, RWE, Deutsche Boerse, MTU Aero, and Allianz. All these firms have jumped by over 30% this year.
On the other hand, the top laggards in the German DAX are companies like Porsche, Henkel, Merck, Zalando, Adidas, and Mercedes-Benz Group.
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