The prospect of large orders motivates Rheinmetall
On the stock exchange in Frankfurt, Rheinmetall was a positive outlier on Tuesday. The German maker of military equipment will receive an additional 2 percent. Rheinmetall’s optimism about sales growth in the coming years during the investor day is received cheerfully. Turnover is expected to accelerate to 50 billion euros by 2030. The report that many large orders are in the offing, including from Germany, was also music to the ears of investors. Money has been flowing into the arms manufacturer for some time, now that European governments are releasing hundreds of billions for rearmament and defense reinforcement.
Rheinmetall produces the Leopard tanks and other armored vehicles and is also a major ammunition supplier, for example artillery shells. In addition to a turnover forecast, the tank builder also set the target of increasing its profit margin to more than 20 percent by the end of the decade.
To achieve these goals, the company plans to sell its auto parts business in the first half of 2026. In the following year, the company will make major investments in ammunition production and digitalization.
“An era of rearmament has begun in Europe, which will demand a lot from us. However, it also offers us growth opportunities for the coming years that we have never experienced before,” the CEO said earlier this year. Rheinmetall has invested billions in building new weapons factories in recent years. Germany’s largest defense group also made several acquisitions and spent a lot of money on securing supply chains.