Rheinmetall Reports Steady Growth and Expands Defence Business in Q3 2025
In its financial report for the third quarter of 2025, Rheinmetall AG, based in Düsseldorf, announced solid growth in sales and operating results. The company’s defence sector saw nearly a one-third increase in business, reflecting high demand amid a challenging global security environment.
Strong Sales and Operating Results
Rheinmetall’s consolidated sales rose by 20% to €7.5 billion in the first nine months of 2025, compared to the same period last year. The defence business grew by 28%, contributing significantly to this increase. The operating result for the group rose by 18%, reaching €835 million, with an operating margin of 11.1%. Defence operations accounted for €825 million of the operating result, marking a 14% gain and an operating margin of 13.6%.
CEO Armin Papperger noted the company’s solid progress toward its annual targets. He highlighted that major German Armed Forces programmes have secured funding in the federal budget, which will lead to new orders in the coming months. Papperger emphasized ongoing investments in capacity expansion, including the construction of 13 new production facilities across Europe, with recent breakthroughs in Lithuania and plans in Latvia and Bulgaria.
Backlog and Order Highlights
Despite a decrease in Rheinmetall Nomination to €18 billion—down 18% from €21 billion last year due to delayed order placements connected to Germany’s new elections and budget approval—the company’s order backlog rose significantly to €64 billion, up from €52 billion last year. This increase follows several large orders, especially within the Electronic Solutions and Weapon and Ammunition divisions.
Segment Performance: Vehicle Systems and Weapon and Ammunition
The Vehicle Systems segment saw sales increase by 28% to €3.235 billion. This growth was driven by deliveries of logistics vehicles under the “Unprotected Transport Vehicle 2.0” framework and the ramp-up of tactical vehicle programmes in Germany and abroad. The segment’s operating result improved by €65 million, although the operating margin slightly decreased to 10.7%.
The Weapon and Ammunition segment reached record sales of €2.014 billion, a 30% increase. Growth stemmed from higher sales of tank and medium-calibre ammunition, along with artillery and mortar orders from NATO countries and Ukraine. The related order backlog stood at €23.231 billion as of September 30, 2025. Financial and Market Outlook
Rheinmetall confirmed its forecast for the full year 2025 based on current market conditions and its strong order book. Operating free cash flow declined to €-813 million, influenced by increased investment in new plants, inventory buildup, and delayed order placements by German customers.
Papperger underlined Rheinmetall’s commitment to becoming a leading global defence player across land, sea, air, and space domains. The planned acquisition of NVL, Lürssen’s naval division, will strengthen its position in naval defence. Papperger stressed the company’s role in supporting European democracy and independence, noting the importance of performance in a time of shifting security demands.
Contact Information
Dr. Philipp von Brandenstein
Head of Corporate Communications
Phone: +49 (0) 211 473-01
The company’s ongoing investment and production expansion indicate confidence in continuing growth, aligned with rising defence budgets in core European markets.
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