Rheinmetall AG

Latest Results (10.09.2025):

Rheinmetall AG reported a robust first quarter in 2025, showcasing significant growth in both sales and operating profits. The company's defence business particularly excelled, nearly doubling its operating result and driving overall group sales up by 46% to €2.3 billion. Additionally, Rheinmetall strengthened its financial position with a substantial increase in order backlog and operating free cash flow.

Group Sales Growth

In the first quarter of 2025, Rheinmetall AG achieved a 46% increase in group sales, reaching €2.3 billion. Notably, the defence sector contributed significantly with a 73% rise in sales, underscoring the strong demand driven by recent geopolitical developments.

Operating Result Improvement

The group operating result surged by 49%, from €134 million to €199 million. Within the defence business, the operating result almost doubled, highlighting the sector's exceptional performance. The overall operating margin also improved to 8.7%.

Enhanced Order Backlog and Nomination

Rheinmetall's order backlog reached a new high of €63 billion, up from €40 billion the previous year. The Rheinmetall Nomination saw a remarkable increase of 181% to €11 billion, reflecting strong order inflows and robust demand for Rheinmetall's products and services.

Operating Free Cash Flow

The operating free cash flow improved significantly by €454 million, totaling €266 million in Q1 2025. This improvement was driven by increased customer advance payments, particularly from the TaWAN contract with the German Armed Forces, enhancing the company's financial flexibility.

Segment Performance Highlights

Sales in Vehicle Systems nearly doubled, reaching €952 million, while Weapons and Ammunition achieved record sales of €599 million, a 66% increase year-over-year. Electronic Solutions also saw substantial growth with a 49% rise in sales to €427 million. Conversely, the Power Systems segment experienced a decline due to economic market weakness.

Annual Forecast Confirmation

Based on the strong first-quarter performance and the favorable market conditions, Rheinmetall AG has confirmed its annual forecast for 2025. The company also highlighted potential upside if further increases in demand materialize due to ongoing geopolitical trends.