Rheinmetall AG Posts Strong Q1 2025 Results

Rheinmetall AG reported a significant rise in sales and operating profit for the first quarter of 2025, surpassing market projections. Sales surged nearly 73% in the military sector and 46% overall, reaching €2,305 million. Operating profit in the defense business increased by 96%, leading to a 49% rise for the group, totaling €199 million. These figures outdid market expectations of €1,946.9 million in revenue and €165.8 million in operating profit.

The operating margin was 8.7%, aligning closely with market expectations. A strong order intake resulted in Rheinmetall Nomination jumping 181% to €11.0 billion, with the backlog hitting a record €62.6 billion due to significant orders, mainly from Germany. The Executive Board reaffirmed its forecast for a 25% to 30% revenue increase in 2025 and an operating margin of around 15.5%.

This performance was primarily driven by the defense sector's robust results, attributed in part to early order deliveries. The potential impacts of recent geopolitical tensions may further enhance Rheinmetall's market position in Europe, Germany, and Ukraine.