Rheinmetall, the German arms manufacturer, reported a strong rise in both revenue and operating profit for the first nine months of 2025. Revenue increased 20 % year‑on‑year to €7.5 billion, while operating profit grew 18 % to €835 million. The company attributes this surge largely to the ongoing conflict in Ukraine and the resulting boost in European Union defence spending.
The firm’s order backlog has reached a record €64 billion, driven by demand for military hardware such as tanks, armoured vehicles, artillery shells and ammunition. To meet this demand, Rheinmetall is expanding its production capacity, with 13 sites under construction or upgrade across the EU, including new plants in Lithuania, Latvia and Bulgaria. CEO Armin Papperger says the company is becoming a “global defence champion.”
Germany has emerged as Ukraine’s second‑largest arms supplier after the United States. The German government has relaxed its budget rules to allow long‑term defence spending that now exceeds the initial €100 billion fund created in response to the Ukraine conflict in 2022. This increased military spending has drawn criticism from Moscow, which has condemned the West’s “reckless militarisation” and accused Germany of trying to become “the main military machine of Europe.” Russian Foreign Minister Sergey Lavrov warned that the broader EU is sliding into a state of heightened militarisation, likening it to a “Fourth Reich.” The escalation of arms deliveries to Ukraine has also raised concerns that the conflict could be prolonged.
Despite the geopolitical tensions, Rheinmetall’s shares have nearly tripled over the past year, buoyed by rising demand for its products. The company’s core markets remain Ukraine, the EU and Germany, positioning it to continue playing a significant role in the global defence industry. As the Ukraine conflict persists, EU defence spending is expected to remain a key driver of Rheinmetall’s growth. Its expansion plans and record order backlog place the firm for sustained success in the global defence market, keeping it in the spotlight of investors, policymakers and industry observers.
Comments are closed for this story.