Profit jumps, sales are expected to be a boom

German weapon producer Rheinmetall on Wednesday He said that he expected 2025 sales by 25-30%this year, among the expectations of “main orders with a large volume of military clients”, which can be further increase from a recent change in Hals in European defense policy.

The company reported a 36% jump in consolidated sales in 2024, and sales in the defense industry increased by 50%. Rheinmetall said that defense sales will increase by 35% to 40%.

Last year, the sales boom helped to exceed Rheinmetall's operational profit to a record level, which is an increase of 61% to EUR 1.48 billion (1.61 billion dollars). The operational margin for the year amounted to 15.2%, compared to 12.8% in 2023.

By the end of last year, Rheinmetall said that his arrears in the order also reached a record level of EUR 55 billion. He said that in the coming years he was expecting “main orders with high volume from military clients.”

The company said that its current perspectives did not take into account the recent geopolitical events related to War in Ukraine AND European defense expensesBut he added that he would adapt his forecasts “because the relevant requirements of military clients become more detailed during the year.”

“Given the radical situation of security policy, the group is seen in a promising situation to play a significant role in the upcoming increase in defense capabilities with products related to security in Germany and partner countries,” said the company in releasing earnings.

Rheinmetall describes himself As “the” most important partner of Ukraine's defense industry in the fight against Russian aggression “after delivering the domestic military goods and logistics support.

The company is also a supplier of various armed forces of other nations, in this Those from Great Britain, Australia, USA and Germany.

Armin Papperger, general director of Rheinmetall, said in a statement accompanying the company's earnings on Wednesday that the company “faced the challenges of Zeitenwene 2.0” – a reference to potential reforms of fiscal policy under the government of the upcoming government to enable greater expenditure on defense.

“We've enormously increased our abilities and we will continue to do it,” he said. “Over the past two years, we have invested almost 8 billion (euros) in the construction of new plants, taking over and safe supply chains. We are aware of our responsibility for the security of our country and the defense capabilities of Europe.

“With a 50% increase in sales in the Rheinmetall defense industry, it is already on the way from being a European supplier of systems to the global master,” added Papperger.

Actions listed on Frankfurt Rheinmetall have increased by almost 88.3% since the beginning of the year, which is wider, it is wider European defense supplies have increased Among the perspective defense of regional governments.

The company's shares increased by about 0.96% at 8:29 in London.

European leaders Is invented to strengthen the regional defense possibilities He comes like US President Donald Trump It exerts pressure on European allies from NATO to lie more money in security expenses, while uncertainty stays on how much support Ukraine can expect from the new White House administration.

Rheinmetall was awarded by many analysts As actions that can be observed how the European history of defense is developing. At the beginning of this monthJPMorgan raised the target price for the company up to 1200 euros (1 308 USD) from 800 euros.