German defence giant Rheinmetall expects to double revenue by 2026

Source: Deutsche Presse-Agentur (dpa), Defence Industry Europe

German armaments and automotive parts manufacturer Rheinmetall is aiming to double sales revenue by 2026 as European countries increase defence spending and modernize outdated equipment.

 

By 2026, sales are expected to increase to EUR 13 billion-EUR 14 billion (USD 14 billion-USD 15 billion), the company announced on Tuesday at an investor event in the central German town of Unterlüß.

Reaching that figure would require annual sales growth of around 20%. In the current year, Rheinmetall has forecast revenue of between EUR 7.4 billion and EUR 7.6 billion.

 

 

Germany and other European countries have significantly increased military spending in response to Russia’s full-scale invasion of Ukraine, which upended long-standing assumptions in many countries about defence arrangements in Europe.

Ukraine’s supporters have also sent the country billions of euros worth of weapons, including arms produced by Rheinmetall.

 

 

Rheinmetall’s previous medium-term forecast from 2022 to 2025 projected annual revenue increases of 17%. Analysts previously expected sales of just under EUR 12 billion euros in 2026.

The Dusseldorf-based company’s armaments division, which is now forecast for around EUR 11 billion in sales in 2026, will continue to be the main source of returns. The armaments division includes Rheinmetall’s business with ammunition and weapons, military vehicle systems and electronics.

The company also manufacturers civilian automotive parts.

 

Tags:

Related news & articles

Latest news

Featured