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Rheinmetall benefits from the armaments boom
Both sales and the result are better than expected. The Düsseldorfers justify the strong growth in the armaments business primarily with attracts. Does it stay with the previous outlook?
The armor boom gave Rheinmetall vigorous growth in the first quarter. According to preliminary calculations, the sales should have risen by around 46 percent to 2.3 billion euros, as the company in Düsseldorf announced. The proceeds with military technology jumped up by almost 73 percent.
The operational result sees Rheinmetall by almost half higher at 199 million euros. The result from the armaments business should have almost doubled. According to the information, both sales and operational result are significantly above the market expectations.
Rheinmetall justified the strong growth in the armaments business, especially with attracts from second to the first quarter. Thanks to the orders from Germany, the company also recorded a strong new business, the order stock reached a new maximum value of 62.7 billion euros.
More potential for geopolitics has not yet taken into account
Against this background, the board confirms at least the sales and result forecast for 2025 with an increase in group sales of 25 to 30 percent and an operating result margin of approximately 15.5 percent. In the first quarter, this was 8.7 percent.
The outlook does not yet take into account a higher market potential, which is expected to result in the markets in Europe, Germany and Ukraine, particularly relevant to Rheinmetall, due to the geopolitical developments in the past few weeks.
dpa
Source: Stern
