Rheinmetall's Surge: Europe's Armament Push Fuels Growth

Rheinmetall, a leading European defence company, anticipates significant sales growth by 2025, driven by geopolitical tensions like the Ukraine invasion and US-Europe decoupling. The firm sees improved operating margins and plans to issue updated guidance. Civilian sales decline, but defence initiatives promise substantial dividends.

Rheinmetall, a frontrunner in European defence, forecasts robust sales growth for 2025 following geopolitical tensions, notably the Russian invasion of Ukraine and the strategic shift between the US and Europe.

The German company, benefitting from Europe's defence spending surge, expects sales to increase by 25% to 30%, promising to update guidance as market dynamics evolve. CEO Armin Papperger emphasized unprecedented growth prospects amidst this 'new era of rearmament.'

Despite a dip in civilian sales, the company proposes a generous dividend and plans to transform automotive plants for defence production, aligning with Europe's broader defence investment strategy.

(With inputs from agencies.)