Due to the war in Europe, Rheinmetall expects even more growth. Sales are expected to increase by around a fifth annually on average until 2026. The ammunition business in particular is expected to increase significantly.
In view of the war in Europe and rising defense budgets in Western countries, the arms company Rheinmetall is aiming for even stronger growth in the coming years. Sales are now expected to increase by an average of around a fifth annually until 2026. The Düsseldorf DAX group announced this on Tuesday at an investor event in Unterlüß, Lower Saxony.
In response to Russia’s war against Ukraine, defense budgets will increase significantly this year, Rheinmetall made clear in the Capital Markets Day documents for investors and analysts. The need for defense systems is increasing in NATO countries. These include warships, vehicles and tanks, aircraft and ammunition, but also network systems and protective clothing.
Rheinmetall’s sales are expected to increase to 13 to 14 billion euros by 2026. For comparison: Management is expecting revenue of 7.4 to 7.6 billion euros so far this year. Analysts previously expected sales of almost 12 billion euros in 2026. The order backlog supports the ambitions: for 2026, the group already has more than 45 percent of its calculated sales as orders on its books. And according to the group’s assessment, further orders are likely to come.
The Düsseldorf-based armaments division remains the source of returns, and is expected to contribute around 11 billion in sales in three years. At Rheinmetall, this includes businesses with ammunition and weapons, vehicle systems and electronics. In particular, the profitable ammunition business is expected to grow significantly, from 1.5 billion euros in sales last year to around 4 billion euros in three years. Rheinmetall is significantly expanding its production capacities as a result of the upcoming orders.
Source: Stern
