Rheinmetall recorded consolidated sales of €9.935 billion in 2025, representing a 29 percent increase compared with €7.715 billion in the previous year. The company also reported a 33 percent rise in operating profit, which reached €1.841 billion.
The group’s operating margin improved to 18.5 percent, up from 18.0 percent in 2024. At the same time, Rheinmetall’s backlog of confirmed orders and framework agreements reached a record €63.8 billion, compared with €46.9 billion in the previous year.
Company officials said growing military spending across Europe has significantly strengthened demand for its defence products. Business with the German Armed Forces in particular expanded, with Germany accounting for 38 percent of the company’s total sales.
Armin Papperger, Chief Executive Officer of Rheinmetall AG, said the company is positioned to benefit from rising defence investments. “The world is changing rapidly, and Rheinmetall is well prepared. We are needed when it comes to increasing the defence capabilities of Germany and Europe and creating an effective deterrence.”
Papperger added that Rheinmetall’s technology portfolio is expected to play a major role in the modernization of military forces. “With our products, we will have a significant share in the increasing equipment spend of the armed forces and deliver what modern armed forces need in the 21st century. We are setting sail with our new Naval Systems division and are now picking up full speed.”
The company also reported strong financial performance across several of its main business segments. Rheinmetall’s Vehicle Systems division generated €4.992 billion in sales, an increase of 32 percent compared with the previous year.
Major programmes contributing to growth included deliveries of military trucks and Boxer wheeled armoured vehicles. The division also recorded improved profitability, with its operating margin rising to 11.7 percent.
Rheinmetall’s Weapons and Ammunition division also experienced significant expansion. The unit generated €3.532 billion in sales in 2025, reflecting a 27 percent increase compared with 2024.
Operating profit in the segment rose by about one third to €1.037 billion. The growth was driven by higher sales volumes, improved product mix and ongoing cost optimisation, resulting in a margin of around 29 percent.
The Electronic Solutions division also reported strong results, increasing sales by 45 percent to €2.504 billion. Major projects included the German Armed Forces’ TaWAN digitisation programme and deliveries of Skyranger and Skynex air defence systems to European customers.
Operating profit in the division increased by 68 percent to €366 million, with margins rising to 14.6 percent. The company also reported strong order growth in this segment, reaching €14.235 billion including framework agreements.
Rheinmetall confirmed that it is shifting fully towards defence activities following the planned sale of its automotive business. According to Papperger, the transition will allow the group to focus entirely on military technologies and defence systems.
“We have achieved a new record operating result and will continue to improve the Group’s profitability. We are well positioned for new major projects with the armed forces,” Papperger said.
He added that acquisitions and partnerships have strengthened Rheinmetall’s long-term growth strategy. “We are on track for success with our acquisitions and partnerships, which will enable us to continue securing our growth in the long term. The development into a cross-domain technology company in the defence sector is paying off already today.”
The chief executive also addressed the company’s decision to discontinue its automotive activities. “We have carefully considered the difficult decision to part ways with the many employees who represent our automotive activities.”
He added that Rheinmetall is supporting those employees during the transition. “We are responsibly supporting our colleagues in their transition to a good solution outside our group and have already created effective collective protection for them. It is now our responsibility to serve our country and our customers – so that we can all continue to live in safety and peace in the future.”
Looking ahead, Rheinmetall expects further expansion in fiscal year 2026. The company forecasts sales growth of 40 to 45 percent, potentially reaching between €14 billion and €14.5 billion.
The group also anticipates further improvements in profitability, with an expected operating margin of around 19 percent. Rheinmetall said the outlook reflects continuing demand for defence equipment as countries strengthen their military capabilities.
