German arms manufacturer Rheinmetall announced on Monday a larger-than-expected increase in its turnover, amid the ongoing European rearmament prompted by the war in Ukraine.
From January to March, Rheinmetall, one of the world’s 30 largest arms companies, achieved a €2.3 billion turnover, 46% more than the corresponding period of 2024, the company reported.
This exceeded the expectations of analysts surveyed by financial platform FactSet, who had predicted a turnover of €1.9 billion.
Rheinmetall’s new sales nearly tripled in the first quarter, reaching €11 billion, driven primarily by orders from Germany, the group stated.
It also reported a 49% increase in its operating profit for the first quarter, with an operational margin of 8.7%, boosted by its military activities, which surged by 96%.
US President Donald Trump's return to power at the beginning of the year has raised concern in Europe about the reliability of security guarantees from Washington. This uncertainty has led European governments to increase their defence spending due to the potential threat from Russia.
In Germany, the new government is planning a massive increase in defence spending, which could reach several hundred billion euros over the next few years.
Rheinmetall’s order book has reached a new record of €62.2 billion. Despite exceeding its performance expectations, the group maintained its forecast for the year, anticipating a turnover increase of 25 to 30%.
