TLDR
- The German defense contractor anticipates revenue reaching 14–14.5 billion euros in 2026, representing up to 45% growth
- Operating profit for 2025 reached an all-time high of 1.8 billion euros, marking a 33% year-over-year increase
- Unfilled orders hit 63.8 billion euros by year-end 2025, with projections pointing to 135 billion euros in 2026
- Strategic pivot underway as Rheinmetall divests its automotive business to concentrate exclusively on military products
- Shareholders will receive a proposed dividend of 11.50 euros per share for 2025, compared to 8.10 euros previously
The German arms manufacturer delivered exceptional financial results for 2025 while projecting robust expansion for 2026, with revenue growth potentially reaching 45% as European nations accelerate military modernization programs.
Annual revenue for 2025 totaled 9.9 billion euros, representing nearly 30% growth compared to the previous year. Core operating earnings jumped by one-third to an unprecedented 1.8 billion euros, producing 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 defense contractor based in Düsseldorf projects revenue between 14 billion and 14.5 billion euros. This forecast exceeds the 13.6 billion euro figure that Berenberg analysts noted the firm had indicated during a preliminary call last month — a shortfall that had previously pressured the share price.
Outstanding orders grew 36% to an unprecedented 63.8 billion euros by the close of 2025. The company anticipates this figure will more than double, reaching 135 billion euros before 2026 ends, fueled by contracts from Germany, NATO allies, and Ukraine.
CEO Armin Papperger said: “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.”
The 2022 Russian invasion of Ukraine triggered a continent-wide initiative to strengthen military forces that had experienced decades of budget reductions. This momentum has intensified since Donald Trump reentered the presidency, prompting European leaders to reconsider their dependence on American defense commitments.
Germany has particularly embraced substantial military investment. Chancellor Friedrich Merz has vowed to transform the Bundeswehr into Europe’s most powerful conventional military force, a commitment that directly benefits Rheinmetall’s business pipeline.
Automotive Exit and Naval Push
Rheinmetall has executed two significant strategic realignments that demonstrate its evolving priorities. The company is divesting its civilian automotive operations, withdrawing from this sector during a challenging period for German automakers, to dedicate all resources to defense manufacturing.
Simultaneously, it acquired Naval Vessels Luerssen (NVL), the German warship manufacturer, representing its inaugural major entry into naval defense systems. The company now spans land, air, space, and maritime defense capabilities.
The firm also inaugurated a new ammunition production facility in northern Germany last year — Europe’s largest — which will manufacture up to 350,000 artillery shells per 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 Iranian conflict. The defense manufacturer stated it is “inevitable” that nations will boost expenditures on missile inventory replenishment and air defense systems due to the conflict, positioning itself to resupply US missile arsenals.
The company forecasts an operating profit margin near 19% for 2026, marginally higher than the previous year’s 18.5%, even after incorporating integration expenses related to the NVL acquisition.
Industry analysts surveyed by the company predict Rheinmetall’s revenue will surpass 42 billion euros by 2030 — a projection that would have appeared unrealistic only a few years ago.
At its May annual shareholder meeting, Rheinmetall will recommend a dividend of 11.50 euros per share for fiscal 2025, an increase from the prior year’s 8.10 euros.
Despite the impressive financial performance, the stock declined 5.87% on Wednesday, with RHM shares trading lower following the earnings announcement.
