Rheinmetall-MAN’s Protected Military Truck.
Rheinmetall AG Financial Results First Half 2025: Düsseldorf, Germany – July 2025 – Rheinmetall AG, the German multinational automotive and defence technology company, has posted strong financial results for the first half of fiscal 2025, with impressive growth in its defence business, which saw sales surge by over 36%.
Key Highlights:
Group Sales: Rheinmetall’s total sales rose by 24%, reaching €4.7 billion, driven by a robust 36% increase in defence-related sales.
Operating Profit: The company’s operating result climbed 18%, reaching €475 million, with a group-wide operating margin of 10%.
Defence Business: The defence sector saw an even stronger increase, with operating profit jumping by 20% to €464 million. The operating result margin for this segment stood at 12.4%.
Order Backlog: Rheinmetall’s order backlog reached a record €63 billion, signaling strong future growth potential, despite delays in order placements within Germany following the spring elections.
Free Cash Flow: Operating free cash flow stood at €-644 million, primarily driven by substantial investments in capacity expansion and increased inventories tied to orders.
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LM-Rheinmetall GMARL Launcher Firing.
Strong Performance in Defence Amid Global Uncertainty
Rheinmetall’s defence business remains a key growth driver, benefiting from both rising global defence budgets and the company’s strong foothold in it core markets, including Germany, Europe, and Ukraine. The company credits much of its success to recent geopolitical shifts, notably the NATO summit in June 2025, which has intensified demand for defence solutions.
“We are witnessing an unprecedented rise in global defence spending, and Rheinmetall is in a prime position to capitalize on this growth,” said Armin Papperger, CEO of Rheinmetall AG. “Our order books are full, and we are expanding rapidly across Europe, particularly in Central and Eastern Europe, as we work towards our goal of becoming a global defence champion.”
The company has ramped up production in anticipation of future demand, with significant investments in new facilities. A standout project is the construction of Europe’s largest ammunition factory in Lower Saxony, expected to bolster Rheinmetall’s capacity for artillery and tank ammunition.
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GMARS.
Vehicle Systems and Weapon Divisions Post Strong Results
Rheinmetall’s Vehicle Systems division, which focuses on military vehicles, saw sales rise by almost 50%, thanks to orders for German and international customers, including a large contribution from the newly acquired U.S. company, Loc Performance. The division’s operating profit surged by 51%, reflecting both higher sales and improved service activities.
Similarly, Rheinmetall’s Weapon and Ammunition segment achieved record sales of €1.32 billion, driven by increased deliveries of tank ammunition and artillery orders from NATO countries and Ukraine. Operating profit in this division rose by 36%, reflecting higher sales volumes despite rising material and personnel costs.
Electronic Solutions Division Expands
The company’s Electronic Solutions division, which focuses on digitalization in the armed forces, also posted strong performance. Sales increased by 46%, largely driven by contracts related to Germany’s TaWAN digitization project and orders for air defence systems. The division’s order intake surged by 231%, pushing its order backlog up by 156% compared to the previous year.
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Civil Business Faces Challenges
While Rheinmetall’s defence business booms, its civil sector faced a more difficult environment. The Power Systems division, which focuses on non-defence technologies, saw a decline in sales, largely due to a weak automotive market. The division’s operating result dropped by 58%, impacted by lower sales and strategic restructuring costs.
Investment in Future Growth
Rheinmetall’s significant investments in new production plants and capacity expansion, particularly in the U.S. and the UK, are set to enhance its production capacity for both defence and civil products. The company has also converted some of its civil production facilities to focus on defence products, positioning itself to meet the growing demand for military technologies in the coming years.
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Outlook: Growth and Geopolitical Influence
Rheinmetall’s leadership remains optimistic, with the company confirming its forecast for 2025. The Group expects sales to grow by 25% to 30%, and anticipates a continued strong operating result margin of around 15.5% for the year. However, the company also noted that recent geopolitical developments, particularly in Europe, may further increase demand, leading to potential adjustments to its forecast as the year progresses.
Papperger concluded, “Rheinmetall stands firm in its commitment to strengthening Europe’s security, and we are well-positioned to leverage the opportunities presented by the changing global landscape. Our focus remains on delivering value to our shareholders, while playing a key role in the defence of democracy and independence.”
With a record-breaking order backlog and a clear strategy for expansion, Rheinmetall is poised for continued success in the second half of 2025 and beyond, as demand for advanced defence technologies continues to rise amid global uncertainty.
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