Rheinmetall: Record Profit and 45 Percent Growth

Record Figures in Fiscal Year 2025

Düsseldorf-based arms manufacturer Rheinmetall has once again exceeded all expectations in fiscal year 2025. Sales rose by 29 percent to €9.9 billion, while operating profit climbed by 33 percent to a record €1.84 billion. The operating margin improved to 18.5 percent. The executive board is proposing a dividend of €11.50 per share for shareholders — up from €8.10 in the previous year.

Particularly impressive: The order backlog grew by 36 percent to €63.8 billion. This gives Rheinmetall a cushion that secures production for years to come.

Ambitious Forecast for 2026

For the current fiscal year 2026, the group expects sales growth of 40 to 45 percent to €14.0 to €14.5 billion. The operating margin is expected to rise to around 19 percent. According to company information, the order backlog could more than double to over €135 billion by the end of the year.

"The world is changing rapidly, and Rheinmetall is well prepared," explained CEO Armin Papperger.

The German armed forces now account for 38 percent of Rheinmetall's sales — four percentage points more than in the previous year. International business continues to contribute 62 percent.

Europe's Rearmament as a Growth Driver

The figures reflect a profound shift in European security policy. The EU program ReArm Europe envisages defense spending of over €800 billion by 2033 — including €150 billion in new EU loans for joint armaments investments. Germany's military budget will exceed the €108 billion mark for the first time in 2026, a record since the founding of the Federal Republic.

Rheinmetall is responding with massive capacity expansion: New ammunition factories are being built in Unterlüß (Lower Saxony), and further plants are planned in Saxony and North Rhine-Westphalia. Production capacities for grenades, tank parts and powder are expected to take full effect from 2026. The group has also expanded into the naval sector through the acquisition of naval shipbuilder NVL.

Boom Throughout the German-Speaking Region

It is not only Germany that is benefiting: In Switzerland, Rheinmetall has doubled its workforce at its Zurich-Oerlikon site to around 2,000 employees. Ammunition and radar systems are primarily manufactured there. Austrian suppliers are also experiencing strong growth.

The entire European arms industry is experiencing an unprecedented boom. The four largest groups — BAE Systems, Rheinmetall, Leonardo and Thales — have massively increased their sales since 2022. Rheinmetall's share price has risen from around €100 to around €1,700 within four years — an increase of 1,600 percent.

Societal Debate Continues

Despite the economic momentum, the role of the arms industry in Germany remains controversial. What was considered politically unacceptable just a few years ago — massive increases in defense spending — has become the norm in view of the geopolitical situation. However, analysts warn that production capacities may not be able to keep pace with the rapidly growing order backlog. For Rheinmetall, this means that the biggest challenge is no longer demand, but the ability to deliver.