Rheinmetall Reports Record Profits
The company attributed this growth to the ongoing Ukraine conflict and expanding EU defense budgets.
Shares of the Dusseldorf-based firm have nearly tripled over the past year, fueled by heightened demand for military equipment.
Rheinmetall manufactures a broad spectrum of weaponry supplied to Ukraine, such as tanks, armored vehicles, artillery shells, and ammunition.
The company reported that sales surged by 20% to €7.5 billion ($8.7 billion), while operating profit climbed 18% to €835 million, according to Rheinmetall’s third-quarter figures released on Thursday.
Additionally, the firm said its order backlog had reached a record €64 billion.
The manufacturer highlighted plans to scale up production, with 13 facilities either under construction or being modernized across the EU.
This expansion includes a new plant in Lithuania, along with upcoming sites in Latvia and Bulgaria. Rheinmetall emphasized that Ukraine, the EU, and Germany remain its primary markets.
“We are becoming a global defense champion,” stated CEO Armin Papperger.
Germany has emerged as Kiev’s second-largest supplier of arms, after the United States. Berlin has modified its budget regulations to allow extended defense spending beyond the €100 billion fund established following the 2022 escalation of the Ukraine conflict.
Chancellor Friedrich Merz has advocated for building what he calls “Europe’s strongest army” in Germany.
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