The Group’s total operating result reached €835 million, up from €705 million the previous year, representing an 18% increase. However, the Group’s operating free cash flow fell sharply to €-813 million, mainly due to high investment levels, inventory build-up, and delays in German order placements.
CEO Armin Papperger said: “We have developed strongly and, with solid growth, are well on track to achieve our ambitious annual targets. The foundations have now been laid for a strong fourth quarter, especially as the German Armed Forces’ planned major programmes are now secured in the federal government’s financial planning and will be commissioned in the coming months.”
Despite delays following Germany’s spring elections, Rheinmetall’s order backlog surged to €64 billion, up from €52 billion the previous year, reflecting several major contracts, particularly in Electronic Solutions and Weapon and Ammunition. Papperger stated: “Expanding capacity through investments in many European countries, partnerships and new plants remains a high priority for us.”
The CEO added: “We are currently either building 13 new plants in Europe or significantly expanding existing ones. Two days ago, we broke ground on a new plant in Lithuania, with Latvia to follow. At the beginning of last week, we agreed with the Bulgarian government to build two large plants for ammunition and powder.”
Sales in the Vehicle Systems division rose 28% to €3.2 billion, fuelled by truck deliveries and tactical vehicle programmes, while Weapon and Ammunition achieved record sales of €2 billion, up 30% from the previous year. Electronic Solutions posted a 41% sales increase to €1.46 billion, backed by air defence systems and digitalisation projects for the German military.
Commenting on future ambitions, Papperger said: “Thanks to the projects we have in the pipeline, we will be a relevant player in all key fields in the future – on land, at sea, in the air and even in space. We are becoming a global defence champion, not least thanks to the planned acquisition of NVL, Lürssen’s naval division.”
Rheinmetall Nomination – the volume of incoming orders and framework agreements – declined to €18 billion, 18% lower than last year, mainly due to delayed German contracts. Still, Papperger emphasised: “It all comes down to our performance now; we are committed to delivering.”
In contrast to the defence units, the Power Systems segment, which handles civilian applications, continued to struggle amid weak market demand, with sales dipping to €1.46 billion and operating result falling by 43% to €42 million. Conversion of civilian plants to defence production is ongoing in Berlin and Neuss.
Rheinmetall confirmed its full-year forecast for 2025, expecting consolidated sales growth between 25% and 30%, and a Group operating result margin of approximately 15.5%.
