Germany’s Rheinmetall, a leading arms and ammunition producer, reported a 46% jump in sales in the first quarter of 2025. The surge was driven by high demand for military equipment in Europe, largely due to the ongoing war in Ukraine and reduced U.S. military aid.

The company, based in Düsseldorf, posted sales of €2.3 billion between January and March 2025. The defence division led the growth, increasing by 73% to €1.8 billion. Nearly 70% of total sales came from foreign markets. These figures show how global conflicts are reshaping the arms industry.

Strong Defence Demand Lifts Revenue

Europe’s shifting security landscape has caused governments to increase defence budgets. Rheinmetall’s rapid rise reflects this trend.

Germany’s new debt policy, aimed at boosting defence and infrastructure, has also supported the stock market. Rheinmetall shares rose 1.5% at the start of the trading day and have climbed 170% so far this year.

Rheinmetall has become a key supplier of ammunition and armoured vehicles for NATO allies. Countries such as Poland, the Czech Republic, and Norway have signed large defence contracts in recent months.

Outlook for 2025: Double-Digit Growth Expected

Rheinmetall expects its annual sales to grow by 25% to 30% in 2025. The company has also projected an operating margin of 15.5%, including the effects of recent acquisitions.

Executives said the company could raise its guidance again if market conditions remain strong. In a statement released on April 28, Rheinmetall confirmed plans to keep its growth momentum throughout the year.

“We’re confident that our focus on innovation and speed will help us meet rising global demand,” said a company spokesperson. The group plans to reassess its forecasts based on market needs and global political developments.

Record Orders and Big Backlog Push Profits Higher

Rheinmetall reported a 70% rise in profit in Q1, delivering earnings of €1.92 per share. Operating profit rose by 49% to €199 million. Defence earnings alone nearly doubled, reaching €206 million.

A key figure in the report is the €11 billion in new defence orders—referred to internally as “Rheinmetall Nomination.” This represents a 181% increase compared to the same quarter last year.

Germany’s special defence fund, created to support its military modernization, drove much of the demand. Rheinmetall ended the quarter with a record order backlog of €63 billion. This includes long-term military contracts and civil sector projects.

Weapons, Vehicles, and Electronics See Major Growth

Several divisions within Rheinmetall saw significant gains:

• Vehicle systems revenue grew 93% to €952 million.
• Weapons and ammunition sales hit €599 million, setting a new record.
• Electronic systems orders rose fivefold, reaching €10 billion in value.

These results underline Rheinmetall’s expanded role in Europe’s defence landscape. However, not all areas grew. Power systems revenue fell 6.7% to €505 million, mainly due to supply delays and a slowdown in the automotive market.

A Leading Force in Europe’s Defence Future

Rheinmetall’s rapid expansion signals a new chapter in Europe’s defence industry. With a growing list of international partners and billions in new contracts, the company is on track to remain one of the continent’s top suppliers of military technology.

The company’s strategy—based on innovation, faster production, and geopolitical readiness—is keeping it ahead of rivals in the European arms market.