- Rheinmetall German Defense entrepreneur The equity price has skyrocketed more than 1,000% since Russia invaded Ukraine in 2022. While the EU provides for an increase of 800 billion euros in defense expenses. Rhénmetall expects growth to remain strong.
The German Defense entrepreneur Rheinmetall sees unprecedented gains while Europe is embarking on a massive military accumulation, even after reporting already strong growth.
Based in Düsseldorf, Germany, the company reported 2024 total income Out of 9.8 billion euros on Wednesday, up 36% compared to 2023. Defense activity led to business sales growth last year, increasing by 50% to 7.6 billion euros. In addition, the backwards increased by 44% to 55 billion euros, a new record.
Last year’s growth has been helped by Europe’s continuing military aid for Ukraine. Since Russia invaded Ukraine in 2022, the Rheinmetall share price climbed by more than 1,000%.
Meanwhile, the European Union recently announced its intention to increase its defense expenses by 800 billion euros (867 billion dollars) while the American historic allies seek to assume more responsibility for their security.
“An era of rear has started in Europe that will require a lot of us,” said CEO Armin Papperger in a statement. “However, this also brings us to the prospects for Rheinmetall growth for the years to come that we have never known before.”
For this year, Rheinmetall expects total sales to increase by 25% to 30% and that defense sales increase from 35% to 40%. Although these figures do not go from 2024, real sales by the end of the year could prove to be even more important.
Rheinmetall has noted in his report that the prospects do not take into account “geopolitical developments in recent weeks”, affirming that updates to his forecasts could occur later as the requirements of his military customers become clearer.
“With a 50% sales growth in the defense sector, Rheinmetall is about to be a supplier of European systems to a world champion,” Papper said.
In recent years, the European leader in the production of ammunition has invested nearly 8 billion euros in new manufacturing, acquisitions and security facilities. In January, Rheinmetall announcement He acquired a majority part in a developer of Bavarian software specializing in the digitization of war.
In addition to the manufacture of missiles and bombs, Rheinmetall also manufactures tanks, air defense systems and autonomous soil vehicles. In particular, it produces the Panther KF51 Main Battle Tank. A major supplier of Ukraine, Rheinmetall has factories in the country torn by war with Lithuania, Hungary and Romania.
In addition, the company seeks to continue its growth in Germany and is would have interested in a Volkswagen Plant in Osnabrük.
Papperger said on Wednesday that the installation would be “very suitable” to the company’s expansion plans and would be more affordable than building a factory from zero.
Papperger warned that even if there was no concept for Rheinmetall to move on the Volkswagen lawn, things could always move quickly.
“One thing is clear: before building a new tank factory in Germany, we will of course take a look,” he said.
This story was initially presented on Fortune.com
