Rheinmetall CEO says the company is on a path to become a global weapons champion, with a strong fourth quarter and large Bundeswehr orders expected, including a multi‑billion‑euro ammunition contract.

The leadership expects a flood of new contracts in 2025, with weekly new agreements expected through the second quarter of next year.

Management notes the company is on a solid growth track and that major Bundeswehr programs are secured in the federal financial plan and likely to be ordered in the coming months.

Overall, the outlook remains positive as defense demand grows amid geopolitical tensions, even as some orders face supply‑demand frictions and capacity expansion continues.

Rheinmetall is diversifying into naval construction by acquiring Lürssen’s marine division and plans to build ships, rockets, and aircraft components with partners like Lockheed Martin, aiming to operate across land, sea, air, and space.

Order intake eased slightly due to delayed German budget approvals, while the order backlog stood around 64 billion euros at the reporting period.

The company expects intensified demand from rising NATO defense spending and pursues growth through partnerships, including a joint venture with Leonardo to build tanks and talks to buy Iveco’s military truck business, with clarity anticipated by March.

Backlog reached 64 billion euros as of September 30, 2025, driven by large orders in Electronic Solutions and Weapon and Ammunition divisions across land, sea, air, and space.

Rheinmetall reported record nine-month results with revenue up about 20% and operating profit up around 18%, driven mainly by strength in the military sector.

The quarter’s and year’s momentum point to continued strength into 2025, with the company posting robust revenue and earnings growth.

Papperger emphasizes war is not a business model and expresses a humanitarian wish for conflict to end, while arguing strong defense capabilities are needed to preserve peace; external analysts caution that more weapons could fuel an arms race.

Rheinmetall maintains a broad portfolio—tanks, artillery, air defense, trucks, drones, and ammunition—and is expanding production with 13 European plants under construction or expansion.

New ammunition and propellant facilities have been commissioned in Unterlüß, with plans for plants in Lithuania and Latvia and a deal with Bulgaria to build two ammunition and powder plants.

The company plans capacity expansion across Europe through multiple new plants and munition facilities as part of its goal to become a global defense player.

The Bundeswehr remains Rheinmetall’s largest customer; while German budget delays have constrained orders, defense spending is largely shielded from the debt brake, supporting long‑term growth.

Delays in the federal budget affected orders, but the core defense budget remains a stable driver of growth.

Rheinmetall is pursuing a broader strategic push through alliances and acquisitions, including Lürssen’s naval unit, to strengthen its market position amid tensions and rising defense budgets.

The growth is framed against NATO expansion and the Ukraine conflict as key drivers for weapon systems, ammunition, and related capabilities.

Papperger portrays Rheinmetall as a global champion through acquisitions and emphasizes defense contributions to democracy in response to security policy shifts.

The company’s order intake declined to about 17.6 billion euros, roughly four billion euros below the prior year, though still high by historical standards.

Rheinmetall reiterates a target to lift 2025 revenue by at least 25% compared with 2024, with strong expectations for a robust fourth quarter.

Management remains optimistic for full-year 2025, forecasting revenue and earnings growth of 25–30% on secured Bundeswehr programs and solid H2 momentum.