Rheinmetall AG has reported record financial results for the fiscal year 2024, driven by strong demand in its defense sector. The German technology group achieved all-time highs in consolidated operating results and order backlog, reinforcing its position as a key player in the global defense industry.

Group sales for 2024 reached €9.75 billion, marking a 36% increase from €7.18 billion in 2023. The company's defense business accounted for approximately 80% of total sales, benefiting from increased military spending in Germany and other partner nations. In contrast, civilian business performance varied, with record sales in the Trade unit but a downturn in the automotive sector.

Key Financial Highlights:
  • Order backlog surged to €55 billion, up from €38 billion in 2023.
  • Consolidated operating profit climbed 61% to €1.48 billion.
  • Operating margin improved to 15.2%, up from 12.8% the previous year.
  • Earnings after taxes increased 38% to €808 million.
  • Dividend per share proposed at €8.10, compared to €5.70 in 2023.
  • Operating cash flow nearly tripled to €1.05 billion.

CEO Armin Papperger emphasized Rheinmetall's readiness to meet the evolving security landscape, citing significant investments of nearly €8 billion over the past two years in capacity expansion, acquisitions, and supply chain reinforcement. "With 50% sales growth in defense, Rheinmetall is transitioning from a European systems supplier to a global leader," Papperger stated.

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Sector Performance:
  • Vehicle Systems: Sales rose 45% to €3.79 billion, driven by military truck deliveries and tactical vehicle programs. Operating profit reached €425 million, with a margin of 11.2%.
  • Weapon and Ammunition: Revenue soared 58% to €2.78 billion, fueled by heightened demand from NATO countries and Ukraine. Operating profit nearly doubled to €790 million, with a margin of 28.4%.
  • Electronic Solutions: Sales climbed 31% to €1.73 billion, supported by contracts for air defense systems and digital battlefield solutions. Operating profit rose to €217 million, with a 12.6% margin.
  • Power Systems: Sales declined 2% to €2.04 billion, impacted by weakness in the automotive market. The operating margin dropped to 4.2% from 6.4% in 2023.
Outlook for 2025: Rheinmetall expects continued strong sales growth of 25% to 30% in 2025, with defense revenue projected to rise between 35% and 40%. The company forecasts an improved operating margin of around 15.5%, supported by sustained demand for military equipment in Europe and Germany. Adjustments to forecasts may be made as geopolitical developments unfold and military procurement requirements become clearer.

With a robust order pipeline and strategic investments, Rheinmetall remains well-positioned to capitalize on the shifting defense landscape, reinforcing its role as a reliable defense partner for Germany and allied nations.