Armaments industry Rheinmetall posts one record after another
As a result of the war in Ukraine, Germany's largest defense contractor Rheinmetall remains on course for record sales.
06.11.2025, 13:07
06.11.2025, 13:08
SDA
As the company announced in Düsseldorf, sales in the first nine months of this year rose by 20 percent to 7.5 billion euros and the operating result by 18 percent to 835 million euros. Rheinmetall had never posted such high figures within nine months. The management confirmed its ambitious annual target: sales in 2025 should be at least 25 percent higher than in 2024 - with strong cash flow expected in the final quarter of the year.
However, it's not all sunshine and roses at the arms manufacturer at the moment, as there was a significant decline in the Nomination financial division - a type of extended order intake - which, at 17.6 billion euros, was around four billion euros down on the previous year. Although the figure has fallen, it is still very high in a long-term comparison.
This includes traditional incoming orders, newly concluded framework agreements with the military and other customer agreements on future call-offs. Some governments of NATO countries would like to invest significantly more in their armed forces in view of the Russian threat, but actual orders are slow to arrive.
Waiting for more Bundeswehr orders
Rheinmetall's biggest customer is the German armed forces, i.e. the federal government. The federal budget was only recently passed with a significant delay, which is another reason why the federal government's hands were somewhat tied. In principle, however, the outlook for Rheinmetall remains very positive, as Bundeswehr spending is largely exempt from the German debt brake.
"We have developed strongly and are on track to achieve our ambitious annual targets with solid growth," said Group CEO Armin Papperger. "The course is now set for a strong fourth quarter, especially as the planned major programs of the German Armed Forces have now been secured in the federal government's financial planning and will be commissioned in the coming months."
Broad product portfolio
Rheinmetall manufactures tanks, artillery, anti-aircraft guns, military trucks, drones and ammunition. The company is the largest manufacturer of artillery shells in the western world, and a new plant was recently opened for this purpose at the Unterlüss site in Lower Saxony. The weapons manufacturer is significantly expanding its production capacities. "There are currently 13 plants that we are either building or massively expanding in Europe," said Manager Papperger. A ground-breaking ceremony was recently held for a new plant in Lithuania, with one in Latvia to follow. And Rheinmetall recently reached an agreement with the Bulgarian government to build two plants for ammunition and powder in the NATO state.
