A surge in the worldwide defence sector once more drove considerable expansion for German arms manufacturer Rheinmetall during the initial quarter.
Based on initial estimates, the company reported on Monday in Düsseldorf that revenues likely increased by approximately 46%, reaching €2.3 billion ($2.6 billion). Sales of military technologies saw an impressive surge of almost 73%.
Rheinmetall anticipates its operational earnings to have surged by roughly 50%, amounting to €199 million. The firm indicated that gains from their defense sector may have more than tripled. According to the corporation, both income and operational profitability notably surpassed industry forecasts.
The firm saw significant new business partly due to contracts from the German government, pushing its order backlog to an all-time high of €62.7 billion.
In light of the global political climate shaped by Russia’s conflict in Ukraine and U.S. President Donald Trump’s America First policy, the board restated their financial projections for 2025. They anticipate a growth in group revenue ranging from 25% to 30%, alongside an expected operating profit margin of around 15.5%.
In the initial three months, this margin was at 8.7%.
The current forecast doesn’t include the increased market opportunities anticipated over the next few months because of geopolitical changes, especially in crucial markets like Europe, Germany, and Ukraine, where Rheinmetall operates.