Rheinmetall reported a 46% jump in sales, reaching €2.3 billion in the year’s first quarter. The company’s defence segment grew by 73%, generating €1.8 billion. Defence contracts, especially from Germany, powered the company’s growth. Rheinmetall confirmed that 70% of its total revenue came from foreign markets. Investor confidence rose, pushing shares up 1.5% at market open. Since January, Rheinmetall’s stock price has soared by 170%. Germany’s debt reform supported this momentum by increasing defence and infrastructure investment across Europe.
Company Projects Strong Growth for 2025 Amid Robust Demand
Rheinmetall maintained its 2025 sales outlook, predicting growth between 25% and 30%. The firm expects current trends to continue. Executives signaled a possible forecast upgrade if conditions improve. Management estimates a 15.5% margin for 2025, slightly above the 15.2% margin achieved in 2024. Recent announcements from 28 April also pointed to positive future adjustments. Rising orders and increased production volumes contribute to the company’s confidence. Rheinmetall plans to continue expanding its defence and vehicle systems operations this year.
Explosive Profits and Record Orders Signal Expansion
Rheinmetall reported a 70% rise in profit, with earnings per share climbing to €1.92. The operating result increased 49% to €199 million. Defence earnings nearly doubled to €206 million. The company’s incoming defence orders, known as Rheinmetall Nomination, surged 181% to €11 billion. Most contracts came from Germany’s special military fund. Rheinmetall’s total order backlog hit €63 billion, reaching a new record. Framework agreements and civilian deals boosted the backlog.
In other divisions, vehicle systems sales rose 93% to €952 million. Ammunition and weapons revenue climbed to €599 million, setting a new record. Orders for electronic solutions skyrocketed to €10 billion, more than five times the previous year. However, sales in power systems dropped 6.7% to €505 million, impacted by a slow auto sector and delayed projects.