Rheinmetall posts record sales, order backlog as defence spending soars

(Sharecast News) - Rheinmetall's share price surged on Wednesday after the German arms manufacturer reported record annual sales of nearly �10bn and a bumper order book of �55bn, saying that "an era of rearmament has begun in Europe".

Consolidated sales jumped 36% over 2024 to �9.75bn, with sales in the defence business specifically up 50%. However, this was slightly shy of the �10bn guidance given by the firm.

Rheinmetall said last year saw significant increases in sales in the defence technology divisions, which benefited from rising demand in the wake of a "turnaround in security policy".

Operating profits rose to a new record �1.48bn, up 61% from the record �918m the previous year, as the operating margin increased to 15.2% from 12.8%, reaching as high as 19% for defence products.

Looking ahead, the company said it expects further sales and earnings growth in 2025, guiding to a top-line increase of between 25% and 30%, as well as operating profit margin of 15.5%. The bullish outlook was supported by a order backlog at the year-end of �55bn, up from �38bn at the end of 2023.

"An era of rearmament has begun in Europe that will demand a lot from all of us. However, it also brings us at Rheinmetall growth prospects for the coming years that we have never experienced before," said chief executive Armin Papperger.

The stock was up 7.7% at �1,243.50