Key Takeaways
- Rheinmetall projects revenue expansion of up to 45% for 2026, with targets set between 14–14.5 billion euros
- The company achieved record core operating profit of 1.8 billion euros in 2025, marking a 33% annual increase
- Outstanding orders surged to an unprecedented 63.8 billion euros in 2025, with expectations to exceed 135 billion euros in 2026
- Strategic pivot underway as Rheinmetall divests its automotive business to concentrate exclusively on defense
- Shareholder dividend proposed at 11.50 euros per share for 2025, representing a significant increase from 8.10 euros
The German defense manufacturer Rheinmetall delivered exceptional financial results for 2025 and presented an aggressive growth strategy for 2026, projecting revenue increases of up to 45% as European nations accelerate military modernization efforts.
Revenue for the complete 2025 fiscal year reached 9.9 billion euros, representing nearly 30% growth compared to the previous year. Core operating earnings climbed by approximately one-third to an all-time high of 1.8 billion euros, achieving an operational margin of 18.5%.
Rheinmetall FY 2025 Earnings Recap
💰 Sales: €9.9B
💵 Dividend/Share: €11.50 (beat est. €10.33)
📈 2026 Sales Guidance: €14B–€14.5B (vs. est. €14.96B)
⚙️ 2026 Operating Margin: ~19% (vs. est. 19.1%)
Rheinmetall delivered solid FY25 results with a dividend above…
— Markets Today (@marketsday) March 11, 2026
Looking ahead to 2026, the Düsseldorf-headquartered defense firm anticipates revenues ranging from 14 billion to 14.5 billion euros. This projection exceeds the 13.6 billion euro figure that Berenberg analysts reported the company had indicated during a preliminary discussion last month — a shortfall that had previously pressured shares downward.
The company’s order pipeline expanded by 36% to reach a record-breaking 63.8 billion euros by year-end 2025. Management forecasts this backlog will more than double, climbing to 135 billion euros by the conclusion of 2026, driven by fresh agreements from Germany, additional NATO allies, and Ukraine.
Chief Executive Armin Papperger stated: “The world is changing rapidly, and Rheinmetall is well prepared. We are needed when it comes to increasing the defence capabilities of Germany and Europe.”
The 2022 Russian invasion of Ukraine triggered an unprecedented shift across Europe toward rebuilding military capabilities that had experienced decades of budget reductions. This momentum has accelerated following Donald Trump‘s return to the presidency, prompting European leaders to reassess their dependence on American defense commitments.
Germany has emerged as a particularly strong driver of military expansion. Chancellor Friedrich Merz has vowed to transform the Bundeswehr into Europe’s most powerful conventional military force, a commitment that directly benefits Rheinmetall’s contract pipeline.
Strategic Realignment: Automotive Sale and Naval Expansion
Rheinmetall has executed two significant structural transformations that underscore its strategic direction. The company is divesting its civilian automotive operations, withdrawing from a sector facing considerable headwinds for German manufacturers, to concentrate exclusively on defense activities.
Simultaneously, the firm completed its acquisition of German naval shipbuilder Naval Vessels Luerssen (NVL), representing its inaugural major entry into maritime defense. The company now operates across land, air, space, and sea domains.
The defense contractor also inaugurated a large-scale ammunition production facility in northern Germany last year — Europe’s most extensive — capable of manufacturing up to 350,000 artillery rounds annually by 2027. Additional manufacturing sites have been established throughout the continent to satisfy escalating demand.
Middle East Conflict and American Inventory Replenishment
Rheinmetall identified an emerging growth opportunity stemming from the Iran conflict. Company leadership stated it is “inevitable” that nations will boost expenditures on missile inventory replacement and aerial defense systems in response to regional hostilities, positioning Rheinmetall favorably to support US munitions restocking requirements.
Management anticipates an operating profit margin near 19% for 2026, modestly above the prior year’s 18.5%, despite incorporating consolidation expenses related to the NVL transaction.
Financial analysts surveyed by the company forecast Rheinmetall’s revenues will surpass 42 billion euros by 2030 — a projection that would have appeared unrealistic just several years ago.
Rheinmetall plans to recommend a dividend payment of 11.50 euros per share for fiscal year 2025 at its May shareholder assembly, up from 8.10 euros distributed the previous year.
Despite the robust financial performance, shares declined 5.87% on Wednesday, with RHM trading lower in the session following the earnings announcement.
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