Total consolidated sales for 2024 reached €9.75 billion, marking a 36% increase from the previous year. The defence business segment saw the most significant growth, rising by 50% and now accounting for approximately 80% of Rheinmetall’s total sales.
The company’s operating result climbed by 61% to €1.48 billion, compared to €918 million in 2023. This strong performance resulted in an operating margin of 15.2%, with the defence segment achieving an even higher margin of 19%.
Rheinmetall’s order backlog reached a new all-time high of €55 billion, up from €38.3 billion the previous year. This backlog includes both firm orders and framework agreements, ensuring long-term business stability and high production capacity utilisation.
CEO Armin Papperger emphasised the company’s readiness for the shifting geopolitical landscape in Europe and beyond. He stated that Rheinmetall is transitioning from a European defence systems supplier to a global leader in military technology.
The company’s strong financial position has been reinforced by high demand from military customers, particularly in Germany and NATO member states. Rheinmetall has been actively expanding its production capabilities to meet the increased need for security-related solutions.
Rheinmetall’s Vehicle Systems division recorded a 45% sales increase, reaching €3.79 billion in 2024. Key contributions came from deliveries of military trucks and armoured vehicles, as well as new contracts, including a €2.94 billion framework agreement for transport vehicles and a €1.67 billion contract for the development of heavy weapon carriers.
The Weapon and Ammunition division was the fastest-growing segment, with sales rising by 58% to €2.78 billion. Major orders included a €7.1 billion framework agreement with the German government for artillery ammunition, surpassing previous contracts for tank and artillery shells.
Rheinmetall’s Electronic Solutions division, which focuses on military electronics and battlefield communication systems, reported a 31% sales increase, reaching €1.73 billion. Growth in this segment was supported by contracts for air defence systems such as the Skyranger 30 and the LVS NNbS (short-range air defence system), along with digitalisation projects for land forces
While Rheinmetall’s defence business achieved significant growth, its civilian division, Power Systems, experienced a slight decline in sales. The segment, which includes automotive components and industrial applications, saw a 2% decrease to €2.04 billion in 2024.
The decline was attributed to market challenges in the automotive sector, including weaker demand for internal combustion engine components and delays in the transition to electric mobility. However, the Trade unit within Power Systems performed well, achieving the highest sales in its history with a 14% increase compared to the previous year.
Rheinmetall’s strong earnings growth translated into higher shareholder returns. The company proposed a dividend of €8.10 per share for 2024, a significant increase from €5.70 per share in the previous year. This represents a payout ratio of 39%, slightly above the 38.9% recorded in 2023.
Earnings after taxes rose to €808 million, marking a 38% increase from the previous year’s €586 million. Earnings per share also grew from €12.32 in 2023 to €16.51 in 2024, reflecting the company’s overall profitability and growth trajectory.
Cash flow from operations nearly tripled in 2024, reaching €1.05 billion, up from €356 million the previous year. Rheinmetall attributed this increase to strong customer payments and higher order fulfilment.
Looking ahead, Rheinmetall expects continued strong growth in 2025. The company forecasts a 25% to 30% increase in total sales, with the defence segment expected to grow between 35% and 40%.
The company anticipates maintaining a high operating margin of around 15.5% in 2025, slightly above the 15.2% recorded in 2024. Rheinmetall also expects further improvements in its order intake, particularly in Europe and Germany, due to increased defence spending.
CEO Armin Papperger highlighted the ongoing expansion of Rheinmetall’s production capabilities, with nearly €8 billion invested over the past two years in new manufacturing facilities, acquisitions, and supply chain security. He noted that the company is well-positioned to support European and NATO defence initiatives amid evolving security challenges.
Strategic Expansion and Industry Positioning
Rheinmetall continues to strengthen its position as a leading defence supplier through investments in advanced technology and production capacity. The company is focusing on increasing output in key areas such as artillery ammunition, military vehicle production, and electronic warfare systems.
The significant increase in order volume reflects the broader rearmament trend in Europe, driven by heightened security concerns. Rheinmetall expects continued demand for its products, particularly in Germany, as the country expands its military capabilities.
Despite global economic uncertainties, the company remains optimistic about its long-term growth prospects. Rheinmetall’s strategy of balancing organic growth with strategic acquisitions is expected to further solidify its market position.
