Key Highlights
- The German defense contractor projects 2026 revenues between 14–14.5 billion euros, representing up to 45% growth
- 2025 core operating profit reached an unprecedented 1.8 billion euros, marking a 33% increase year-over-year
- The company’s order backlog hit 63.8 billion euros in 2025 and is projected to surge to 135 billion euros by end of 2026
- Rheinmetall is divesting its automotive business to concentrate exclusively on defense operations
- Shareholders will receive a proposed 11.50 euros per share dividend for 2025, compared to 8.10 euros previously
The German defense powerhouse Rheinmetall has delivered exceptional financial results for 2025 while setting an aggressive growth trajectory for 2026, anticipating revenue expansion of up to 45% as European nations accelerate their military modernization efforts.
The company’s 2025 fiscal year revenues reached 9.9 billion euros, representing a nearly 30% increase from the previous period. Core operating earnings jumped by one-third to an all-time high of 1.8 billion euros, yielding an operating 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 contractor has set revenue guidance between 14 billion and 14.5 billion euros. This projection exceeds the 13.6 billion euro estimate that Berenberg analysts noted the company had communicated during a preliminary briefing last month — a shortfall that had previously pressured the share price.
The company’s order backlog expanded 36% to an unprecedented 63.8 billion euros as 2025 concluded. Management anticipates this pipeline will more than double to 135 billion euros by year-end 2026, fueled by fresh contracts from Germany, additional NATO partners, and Ukraine.
CEO 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 Kremlin’s 2022 invasion of Ukraine initially triggered a comprehensive effort across the continent to rebuild military forces that had experienced decades of budget reductions. This momentum has intensified since Donald Trump assumed office again, prompting European leaders to reassess their dependence on American defense commitments.
Germany has particularly embraced substantial military expansion. Chancellor Friedrich Merz has vowed to transform the Bundeswehr into Europe’s most formidable conventional military force, an objective that directly benefits Rheinmetall’s contract pipeline.
Civilian Business Divestment and Maritime Expansion
Rheinmetall has executed two strategic transformations that underscore a decisive pivot. The company is divesting its civilian automotive operations, withdrawing from a sector facing headwinds for German manufacturers, while concentrating entirely on defense activities.
Simultaneously, the firm completed its acquisition of German naval shipbuilder Naval Vessels Luerssen (NVL), establishing its inaugural major presence in maritime defense. From land systems to aerospace, space technology, and now naval capabilities — Rheinmetall is broadening its reach across every military domain.
The defense contractor also inaugurated a new ammunition manufacturing facility in northern Germany last year — Europe’s largest — which will generate up to 350,000 artillery rounds annually by 2027. Additional production sites have been established throughout the continent to satisfy escalating demand.
Middle East Conflict and American Stockpile Replenishment
Rheinmetall identified an emerging growth opportunity: the Iranian conflict. Company leadership stated it is “inevitable” that nations will boost expenditures on missile inventory replacement and air defense systems following the hostilities, positioning itself to resupply US missile arsenals.
The corporation anticipates an operating profit margin near 19% for 2026, modestly above last year’s 18.5%, even after incorporating integration expenses related to the NVL transaction.
Industry analysts surveyed by the company forecast Rheinmetall’s revenues will surpass 42 billion euros by 2030 — a projection that would have appeared implausible just several years ago.
At its May annual shareholder meeting, Rheinmetall will recommend a dividend distribution of 11.50 euros per share for fiscal year 2025, increased from 8.10 euros in the prior period.
Despite the robust financial performance, the stock declined 5.87% on Wednesday, with RHM shares trading lower following the earnings announcement.
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