The group’s operating result grew significantly by 49% from €134 million to €199 million. The defence segment’s operating profit almost doubled, rising from €105 million to €206 million, while the operating result margin climbed to 8.7%.
Orders for Rheinmetall have surged, with the company’s order nomination rising by 181% to €11 billion. Additionally, the order backlog increased markedly to €63 billion, reflecting the strong demand for Rheinmetall’s defence solutions.
The company’s operating free cash flow saw a marked improvement, increasing by €454 million to €266 million. This was attributed to increased advance payments from customers, particularly linked to the TaWAN contract with the German Armed Forces.
Armin Papperger, Chair of the Executive Board of Rheinmetall AG, highlighted the company’s pivotal role in the current geopolitical landscape. He stated, “Rheinmetall is needed – customers are buying entire factories from us today. Europe must prepare itself for a new era in which we must oppose the threat to our liberal values with all our strength.”
Papperger also emphasized the company’s commitment to growth, saying, “We must and will deliver. We are experiencing growth like never before in the Group and are getting closer to our goal of becoming a global defence champion.”
The Vehicle Systems segment recorded a remarkable 93% increase in sales to €952 million, driven by the delivery of swap body trucks for the German Armed Forces. The Weapons and Ammunition division achieved record sales of €599 million, a 66% increase due to higher ammunition deliveries, including artillery ammunition for NATO countries and Ukraine.
Electronic Solutions also saw significant growth, with sales rising by 49% to €427 million. This was mainly driven by contracts related to infantry equipment and air defence systems for the German Army and other European customers.
Conversely, Rheinmetall’s civilian segment, Power Systems, faced challenges, reporting a decline in sales to €505 million. The decrease was attributed to ongoing economic weaknesses in the automotive sector.
Looking ahead, Rheinmetall has confirmed its annual forecast for 2025, anticipating a 25% to 30% growth in group sales. The company also projects an improvement in operating result and margin to around 15.5% for the fiscal year.
Papperger concluded by underscoring Rheinmetall’s strategic expansion and future readiness. He remarked, “We are also massively expanding our capacities with the construction of new plants and strategic acquisitions.” The company remains focused on seizing opportunities amid evolving geopolitical developments and increased defence spending in Europe.
