Key Highlights
- The German defence contractor projects revenue growth reaching 45% in 2026, with sales targets between 14 and 14.5 billion euros
- Operating profit for 2025 climbed to a record 1.8 billion euros, representing a 33% increase from the previous year
- The company’s order backlog surged to 63.8 billion euros in 2025 and is projected to reach 135 billion euros by end of 2026
- Rheinmetall plans to divest its automotive business to concentrate exclusively on defence manufacturing
- Shareholders face a proposed dividend increase to 11.50 euros per share for 2025, compared to 8.10 euros previously
The German defence giant Rheinmetall delivered exceptional financial results for 2025 while presenting an aggressive growth strategy for 2026, with revenue expansion projected at 45% as European nations accelerate military modernization programs.
Annual revenue for 2025 totalled 9.9 billion euros, marking an increase of nearly 30% compared to the previous fiscal year. Core operating profit reached a record 1.8 billion euros, climbing by one-third and delivering 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 firm has set revenue guidance between 14 billion and 14.5 billion euros. This forecast surpasses the 13.6 billion euro figure that Berenberg analysts reported the company had mentioned during a pre-close conference call last month — a shortfall that had previously pressured the share price.
The company’s order backlog expanded 36% to reach a record 63.8 billion euros as of December 2025. Management anticipates this figure will more than double to 135 billion euros by the close of 2026, fueled by new defence contracts from Germany, NATO allies, and Ukraine.
CEO Armin Papperger said: “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.”
Russia’s 2022 invasion of Ukraine triggered a widespread European initiative to rebuild military capabilities that had faced decades of budget reductions. This momentum has intensified following Donald Trump‘s return to the presidency, prompting European governments to reassess their dependence on American security commitments.
Germany stands at the forefront of this military expansion. Chancellor Friedrich Merz has announced plans to develop the Bundeswehr into Europe’s largest conventional military force, a commitment that directly benefits Rheinmetall’s contract pipeline.
Automotive Exit and Naval Push
Rheinmetall has executed two strategic restructuring initiatives that underscore its strategic realignment. The company has placed its civilian automotive operations on the market, withdrawing from this sector during a challenging period for German automakers, while redirecting its entire focus toward defence production.
Simultaneously, the firm completed the acquisition of German warship manufacturer Naval Vessels Luerssen (NVL), representing its inaugural major entry into naval defence. The company now operates across land, air, space, and maritime domains.
A new munitions manufacturing facility opened in northern Germany last year stands as Europe’s largest, with capacity to produce up to 350,000 artillery shells annually by 2027. Additional production facilities have been established throughout Europe to satisfy growing demand.
Iran and US Restocking
Rheinmetall identified an emerging growth opportunity stemming from the conflict in Iran. Company leadership stated that increased defence spending on missile replenishment and air defence systems appears certain as countries respond to the conflict, positioning Rheinmetall to support US missile inventory restoration efforts.
The firm projects an operating profit margin around 19% for 2026, marginally above the previous year’s 18.5%, after incorporating consolidation expenses related to the NVL transaction.
Company-polled analysts forecast Rheinmetall’s revenue will surpass 42 billion euros by 2030 — a projection that would have appeared implausible merely a few years ago.
Management will recommend a dividend of 11.50 euros per share for the 2025 fiscal year at the May annual general meeting, representing an increase from 8.10 euros in the prior year.
Share prices declined 5.87% on Wednesday following the earnings announcement, with RHM trading lower throughout the session.
