August 25, 2024

Rheinmetall aims for EUR 40 billion annual turnover by 2030

By Defence Industry Europe

German defence industry giant Rheinmetall is negotiating with Kiev the construction of a tank production plant in Ukraine. This plant will be able to produce up to 400 KF 51 Panther main battle tanks a year, f Rheinmetall CEO Armin Papperger told the German newspaper “Rheinische Post”. — KF 51 Panther main battle tank. Photo: Rheinmetall.

Rheinmetall, Germany’s largest defence contractor, has reported a significant increase in revenue for the first half of 2024, marking a 33% rise to approximately EUR 3.8 billion. This growth is part of the company’s broader ambition to become one of the world’s leading firms in the defence sector by the end of this decade.

In an interview with Handelsblatt, CEO Armin Papperger outlined Rheinmetall’s strategic vision, stating that the company aims to achieve an annual turnover of EUR 40 billion by 2030. Papperger highlighted that crossing the EUR 10 billion revenue threshold this year would represent a 40% year-on-year increase, positioning the company well on its path to achieving its long-term goals.

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Papperger noted that the expansion strategy would involve both organic growth and acquisitions. Recent examples include the acquisition of the American company Loc and the Spanish firm Expal, which are expected to bolster Rheinmetall’s global footprint and product offerings.

In addition to its revenue growth, Rheinmetall reported a significant rise in incoming orders and newly signed framework contracts, which more than doubled to EUR 15.4 billion in the first half of 2024. The company’s portfolio includes tanks, artillery systems, air defence systems, military trucks, and ammunition. Rheinmetall plays a crucial role in supplying and modernising NATO forces and has become a key supplier of military equipment to Ukraine.