Rheinmetall, a German arms manufacturer, has reported a significant increase in revenue and operating profit for the first nine months of 2025. The company’s revenue jumped 20% year-on-year to €7.5 billion, while operating profit rose 18% to €835 million. This surge is largely attributed to the ongoing conflict in Ukraine and the subsequent increase in European Union defense spending.
The company’s order backlog has reached a record €64 billion, driven by demand for its military hardware, including tanks, armored vehicles, artillery shells, and ammunition. Rheinmetall is expanding its production capabilities, with 13 sites under construction or upgrade across the European Union, including new plants in Lithuania, Latvia, and Bulgaria.
According to CEO Armin Papperger, the company is becoming a “global defense champion.” Germany has emerged as Ukraine’s second-largest arms provider, after the United States. The German government has relaxed its budget rules to allow for long-term defense spending, exceeding the initial €100 billion fund created in response to the Ukraine conflict in 2022.
The increased military spending has been met with criticism from Moscow, which has condemned the West’s “reckless militarization” and accused Germany of seeking to become “the main military machine of Europe.” Russian Foreign Minister Sergey Lavrov has warned that the broader European Union is sliding into a state of heightened militarization, which he likened to a “Fourth Reich.”
The escalation of arms deliveries to Ukraine has sparked concerns about the prolongation of the conflict. Despite this, Rheinmetall’s shares have nearly tripled over the past year, driven by rising demand for military hardware. The company’s core markets remain Ukraine, the European Union, and Germany, with the manufacturer poised to continue playing a significant role in the global defense industry.
As the conflict in Ukraine continues, the European Union’s defense spending is expected to remain a key driver of Rheinmetall’s growth. The company’s expansion plans and record order backlog position it for sustained success in the global defense market. With the international community closely watching the developments in Ukraine, Rheinmetall’s performance will likely remain a subject of interest for investors, policymakers, and industry observers alike.