The Rheinmetall man military vehicle drives on the road on November 20, 2024 in Donnetsk Oblast, Ukraine.
Yan Dobronosov | Global Picture Ukraine | Getty images
German arms manufacturer Renmatol On Wednesday, he hoped that the sales of 2025 will increase by 25–30% this year, amidst the expectations of “major high-lecracy orders from military customers”, which could move beyond recent changes in European defense policy.
The company reported a jump of 36% in consolidated sales in 2024, in which the defense business sold 50%. Rheinmetall said that defense sales are expected to increase from 35% to 40% this year.
Last year’s sales boom helped Rheinmetall’s operational gain to a record high, from 61% to 1.48 billion euros ($ 1.61 billion). The operating margin for the year was 12.8% to 15.2% in 2023.
By the end of last year, Rheinmetall stated that its order backlog also reached a high level of 55 billion euros. It said that in the coming years, “Military customers were expected to order the major high-trial”.
The company stated that its current approach was not a factor in the recent geo -political development related to war in Ukraine and European defense spending, but also said that it would adjust its forecasts “because the military customers’ related requirements become more specific during the year.”
In the release of its earnings, the company said, “Given the dramatically changed security policy situation, the group sees in a promising position to play an important role in the upcoming growth in defense capacity with security -related products in Germany and partner countries.”
Rheinmetall’s frankfurt-listed stocks have increased by about 88.3% from the beginning of the year, as extensive European defense stocks have increased in comprehensive European defense shares amid the possibility of defense by regional governments.
European leaders pushed to increase regional defense capabilities as US President Donald Trump is pressurizing European NATO colleagues for greater funds in security expenses, while uncertainty remains on how much Ukraine can support the new White House administration.
Rheinmetall has been seen as a stock by many analysts because the European defense story develops. Earlier this month, JP Morgan increased its target price for the company from 800 euros to 1,200 euros ($ 1,308).
This braking news story is being updated.
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