Key facts
- Rheinmetall's Q2 revenue surged by nearly 70% to €3.3 billion.
- Operating profit in Q2 reached €562 million, exceeding expectations.
- The company's order backlog stood at a record €63.8 billion for FY2025.
- Rheinmetall forecasts 40%-45% sales growth in FY2026.
- The company is now focused solely on defense after divesting automotive activities.
German defense contractor Rheinmetall reported a significant increase in its second-quarter financial performance, with revenue rising nearly 70% to approximately €3.3 billion and operating profit climbing to €562 million, surpassing market expectations. This growth was attributed to strong demand across all business segments for military equipment.
For the full fiscal year 2025, Rheinmetall saw consolidated sales increase by 29% to €9,935 million, while the operating result improved by 33% to €1,841 million, resulting in an operating margin of 18.5%. The company's order backlog reached a new record of €63.8 billion by the end of 2025, up 36% from the previous year. This backlog includes a significant €11.371 billion nomination in the second quarter, featuring contracts for loitering munitions with the German armed forces and a SAFE order package with Romania.
Rheinmetall has strategically shifted its focus entirely to the defense sector, discontinuing its automotive activities which are currently up for sale. This transition has been bolstered by acquisitions, including naval shipbuilder NVL, positioning the company as a comprehensive systems provider across land, air, and naval domains, and expanding into space technology. The company anticipates continued growth in sales and earnings for fiscal year 2026, forecasting sales between €14.0 billion and €14.5 billion, representing a 40%-45% increase, with an expected operating result margin of around 19%.
CEO Armin Papperger highlighted the company's preparedness for a changing world and its role in enhancing the defense capabilities of Germany and Europe. He emphasized the company's commitment to serving customers and ensuring safety and peace through its products, while also acknowledging the difficult decision to part ways with employees from the automotive division.