German defense giant Rheinmetall is riding an unprecedented wave of demand as Europe embarks on a historic military expansion.
Since Russia’s invasion of Ukraine in 2022, the company’s stock has soared more than 1,000%, and with the European Union planning an €800 billion defense boost, the momentum shows no signs of slowing.
Rheinmetall, based in Düsseldorf, reported €9.8 billion in total revenue for 2024, a 36% jump from the previous year.
The defense segment drove growth, surging 50% to €7.6 billion. The company’s order backlog reached a record €55 billion, up 44%, reflecting Europe’s deepening commitment to military preparedness.
“An era of rearmament has begun in Europe that will demand a lot from all of us,” CEO Armin Papperger stated.
“However, it also brings us at Rheinmetall growth prospects for the coming years that we have never experienced before.”
This year, the company expects total sales to rise another 25%-30%, with defense sales climbing 35%-40%.
While these estimates trail 2024’s explosive growth, Rheinmetall hinted that actual sales could exceed projections as military clients adjust their procurement plans.
Notably, the company acknowledged that its outlook does not yet factor in recent geopolitical developments, leaving room for upward revisions.
With its rapid ascent, Rheinmetall is transforming from a European supplier into a global defense powerhouse.
The company has invested nearly €8 billion in new manufacturing sites, acquisitions, and supply-chain fortifications.
In January, it acquired a majority stake in a Bavarian software firm specializing in battlefield digitization—an investment aligned with modern warfare’s increasing reliance on AI and automation.
Beyond missiles and munitions, Rheinmetall produces tanks, air-defense systems, and autonomous ground vehicles, including the Panther KF51 main battle tank.
A key supplier to Ukraine, it has manufacturing plants in Lithuania, Hungary, Romania, and even war-torn Ukraine.
The company is also eyeing further domestic expansion, with reports surfacing about its interest in acquiring Volkswagen’s Osnabrück plant.
Papperger confirmed the site would be a logical choice for Rheinmetall’s growth strategy, citing cost efficiencies over building a new facility from scratch. However, he tempered expectations, emphasizing that no formal plans were in place yet.
“One thing is clear: before I’ll build a new tank factory in Germany, we’ll of course take a look at it,” he said.
As Europe moves decisively to bolster its defense capabilities, Rheinmetall stands at the forefront of an industry boom.
With mounting orders, strategic acquisitions, and expansion plans in motion, the company’s business is thriving, and its trajectory suggests its record-breaking growth is far from over.
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