Rheinmetall 2024 Profit Surges as Europe Defense Spending Plan

Germany’s arms maker, Rheinmetall, reports a 36% jump in net profit in 2024 and predicts a sales boost as Europe increases military spending.

The company concluded its 2024 fiscal year with a record-high operating profit, up 61% to around €1.48 billion.

Rheinmetall is projecting “major high-volume orders from military customers.

Rheinmetall 2024 Profit Results

In 2024, Rheinmetall’s sales increased most in its defense business (50%). The company is benefitting from rising demand linked to geopolitical instability.

Defense now accounts for about 80% of the group’s total sales revenue, up 36% from the previous fiscal year, when it reached around €9.8 billion, compared to the company’s prior forecast of around €10 billion.

In 2024, the German arms maker’s earnings, after taxes, increased by 38% to €808 million. In addition, the firm’s order backlog reached a record high of €55 billion, an increase of 44% compared with the previous year.

The group’s operating margin rose to 15.2%, and for the defense business, it reached 19%. Furthermore, the board also proposes a dividend of €8.10 per share, compared to €5.70 in the previous year.

The arms manufacturer plans to pay more than €350 million to shareholders after reporting record orders and profits as European countries look to boost defense spending.

Read: German DAX Hits Record 23000 Amid EU Defence Spending

Rising 2024 Profit Amid European Defense Spending

The firm, which describes itself as “Ukraine’s most important defense industry partner in the fight against Russian aggression,” is well-positioned to benefit from the dramatically changed European security landscape.

EU member states are looking to boost military capacity as US President Donald Trump threatens to withdraw support for the bloc, and Russia’s war in Ukraine threatens regional security.

In 2025, Rheinmetall forecasts annual sales to increase by 25% to 30% on a group level and between 35% and 40% in its defense business.

The company’s clients include the UK, Australia, the US and Germany armed forces.

The European Commission wants to mobilize up to €800 billion ($863 billion) for European defense. That includes a plan to borrow up to €150 billion to lend to national governments.

30% of its sales, which in 2024 reached €9.8 billion, came from Germany’s armed forces

Following its spending plan, Rheinmetall plans to add roughly 8,000 employees over the next two years, bringing its global workforce to 40,000.

Facts about Rheinmetall AG 

Rheinmetall AG is one of the world’s leading defense contractors. It specializes in land-based military systems, ammunition, electronic warfare, and air defense. The company supplies advanced military technology to Germany’s Bundeswehr, NATO allies, and international defense clients.

• Global Presence: 30 countries
• Key markets: Germany, the United States, the UK, Australia, Canada, the Middle East, and NATO countries
• Major clients: German Armed Forces (Bundeswehr), NATO allies, and global defense ministries

Key Business Areas in Defense

Land Systems

Rheinmetall is a major player in armored vehicles and combat systems, offering:

• KF51 Panther: Next-generation main battle tank (MBT), designed as a successor to the Leopard 2.
• Lynx IFV: A highly modular Infantry Fighting Vehicle (IFV) designed for modern combat.
• Boxer APC: A heavily armored 8×8 modular armored vehicle for troop transport and special operations.

Weapons & Ammunition

Rheinmetall produces a wide range of military-grade weapons and ammunition, including:

• 120mm tank ammunition: Used in Leopard 2 and other NATO MBTs.
• 155mm artillery shells: Standard NATO rounds for howitzers like the PzH 2000.
• Shoulder-fired weapons: anti-tank and anti-aircraft weapons.

Air Defense & Countermeasures

Rheinmetall is a leader in short- and medium-range air defense systems, including:

• Skynex Air Defense System: A cutting-edge, modular system using high-speed cannons and missile integration for counter-drone and missile defense.
• Oerlikon 35mm Twin Gun System: A widely used anti-aircraft gun system.
• Laser Defense Systems: Developing high-energy laser weapons for next-generation air defense.