TLDR
- Rheinmetall projects revenue expansion of up to 45% for 2026, with targets set between 14–14.5 billion euros
- 2025 core operating profit reached an all-time high of 1.8 billion euros, representing a 33% annual increase
- Outstanding orders surged to a record 63.8 billion euros in 2025, with projections to exceed 135 billion euros in 2026
- The defense contractor is divesting its automotive business to concentrate exclusively on military operations
- Shareholders to receive proposed dividend of 11.50 euros per share for 2025, representing a jump from 8.10 euros
The German defense powerhouse Rheinmetall delivered record-breaking financial results for 2025 and presented an optimistic forecast for 2026, projecting revenue growth as high as 45% as Europe’s military modernization efforts accelerate demand for ammunition and defense systems.
Annual revenue for 2025 totaled 9.9 billion euros, marking nearly a 30% increase compared to the previous year. Core operating earnings climbed by one-third to an unprecedented 1.8 billion euros, 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 defense manufacturer projects revenues ranging from 14 billion to 14.5 billion euros. This guidance exceeds the 13.6 billion euros that Berenberg analysts noted the company had indicated during a preliminary briefing last month — a shortfall that had previously pressured the stock downward.
The company’s order book expanded 36% to an unprecedented 63.8 billion euros by year-end 2025. Rheinmetall anticipates this figure will more than double to approximately 135 billion euros by the conclusion of 2026, fueled by incoming contracts from Germany, NATO allies, 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.”
Russia’s 2022 military invasion of Ukraine triggered a continent-wide initiative to revitalize defense forces that had been systematically downsized over decades. This movement has intensified since Donald Trump reentered the White House, prompting European leadership to reassess the dependability of American security commitments.
Germany has particularly committed to substantial military expansion. Chancellor Friedrich Merz has vowed to transform the Bundeswehr into Europe’s most powerful conventional military force, a commitment that directly benefits Rheinmetall’s contract pipeline.
Automotive Exit and Naval Push
Rheinmetall has executed two significant structural transitions that underscore a decisive strategic reorientation. The company is selling its civilian automotive operations, withdrawing from a sector facing headwinds for German automakers, to concentrate entirely on defense manufacturing.
Simultaneously, the firm acquired German warship manufacturer Naval Vessels Luerssen (NVL), representing its inaugural major expansion into maritime defense. With capabilities now spanning land, air, space, and naval operations, Rheinmetall is broadening its defense portfolio across all military domains.
The company inaugurated a new ammunition manufacturing facility in northern Germany last year — Europe’s largest — designed to produce up to 350,000 artillery shells each year by 2027. Additional production sites have been established throughout the continent to satisfy growing demand.
Iran and US Restocking
Rheinmetall identified an emerging growth opportunity: the conflict in Iran. The defense contractor stated it is “inevitable” that nations will boost expenditures on missile replenishment and air defense systems as a consequence of the conflict, positioning itself favorably to resupply US missile inventories.
The company anticipates an operating profit margin of approximately 19% for 2026, marginally higher than 2025’s 18.5%, even after incorporating consolidation expenses related to the NVL acquisition.
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.
Rheinmetall will recommend a dividend payment of 11.50 euros per share for the 2025 fiscal year at its May annual shareholder meeting, up from 8.10 euros the previous year.
The stock declined 5.87% on Wednesday notwithstanding the robust financial performance, with RHM shares trading lower following the earnings announcement.
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