On March 12, 2025, German arms manufacturer Rheinmetall announced a significant increase in sales projections for 2025, expecting a rise of 25-30%. This forecast follows a record 36% increase in consolidated sales for 2024, driven by a surge in defense business, which saw a 50% growth.
- Rheinmetall expects 25-30% sales growth.
- Defense sales increased by 50% in 2024.
- Record operating profit of 1.48 billion euros.
- Order backlog reached 55 billion euros.
- European defense spending influenced by geopolitical changes.
- JPMorgan raised Rheinmetall's target price significantly.
Rheinmetall’s robust growth in the defense sector reflects a broader trend in European military spending. The company reported a record operating profit of 1.48 billion euros ($1.61 billion) for 2024, marking a 61% increase from the previous year. The operating margin also improved to 15.2%, up from 12.8% in 2023. By the end of 2024, Rheinmetall’s order backlog reached a record high of 55 billion euros, indicating strong demand for its products.
Key statistics from Rheinmetall’s financial performance include:
- 36% increase in consolidated sales for 2024.
- 50% growth in defense sales.
- Projected defense sales growth of 35-40% for 2025.
The company noted that its current sales outlook does not account for the latest geopolitical developments, particularly the ongoing war in Ukraine. However, Rheinmetall expressed confidence in adjusting its forecasts as military customers clarify their requirements throughout the year. The changing security landscape in Europe has positioned Rheinmetall favorably to contribute to increased defense capabilities among Germany and its partners.
Rheinmetall’s stock has surged nearly 88.3% since the start of the year, reflecting investor optimism regarding European defense spending. Analysts have highlighted the company as a key player in this sector, with JPMorgan recently raising its target price for Rheinmetall shares to 1,200 euros ($1,308).
In summary, Rheinmetall’s impressive sales growth and optimistic outlook for 2025 underscore the increasing demand for defense products in Europe. The company’s record operating profit and substantial order backlog position it well to capitalize on future military orders amid evolving geopolitical circumstances.
