Rheinmetall

What it is

Rheinmetall AG is a German defence and technology group headquartered in Düsseldorf, listed on the Frankfurt Stock Exchange (DAX: RHM). It designs and manufactures armoured wheeled and tracked vehicles, weapons and ammunition, and electronic defence systems, operating across three segments: Vehicle Systems, Weapons and Ammunition, and Electronic Solutions. In 2025 it added a naval segment after acquiring NVL Group, a German shipbuilder. As of SIPRI's 2024 ranking, Rheinmetall placed 20th among the world's largest arms producers, with arms revenues of US$8.2 billion. It is Germany's largest purely defence-focused company and the primary industrial engine of Germany's rearmament programme.

History

Founded in 1889 in Düsseldorf as Rheinische Metallwaaren- und Maschinenfabrik, Rheinmetall supplied artillery shells and guns to the German military through both World Wars. After 1945, under Allied restrictions on arms production, it diversified into automotive components, making pistons and engine parts. Through the Cold War the automotive business stabilised revenue while a modest defence arm was rebuilt. In the 1990s and 2000s the company pivoted toward pure defence, absorbing MAN Military Vehicles in 2004 (military trucks) and building an ammunition network that included Nitrochemie AG in Switzerland and RWM Italia. Armin Papperger became CEO in 2013 and accelerated the refocus. Russia's February 2022 full-scale invasion of Ukraine transformed the business: Germany's Zeitenwende spending commitment drove a flood of Bundeswehr orders, and Papperger announced the divestiture of automotive operations to make Rheinmetall entirely defence-focused.

Current state

For 2025, Rheinmetall reported sales of EUR 9.9 billion, up 29% year-on-year, with an order backlog of EUR 63.8 billion, a record (+36%). Its 2026 guidance is EUR 14.0-14.5 billion (+40-45%), with an operating result margin of 18.5% in 2025 and a target of 19% in 2026. Germany accounts for 38% of sales; the rest is split across NATO allies and export customers. Key active programmes include Boxer 8x8 infantry fighting vehicles (EUR 2.88bn contract with Germany), Leopard 2 A8 production, and the TaWAN Bundeswehr digitisation framework. Rheinmetall is building or has opened new production facilities in Ukraine, Australia, Lithuania, and the United Kingdom. In April 2026, CEO Papperger stated that artillery shell output had grown from 70,000 to 1.1 million per year, putting Germany ahead of the United States in conventional ammunition output, as covered in Rheinmetall says Germany has overtaken the US in conventional ammunition output. In June 2026, the German Bundeswehr awarded a EUR 360m contract for 23 Bergepanzer 3 A2 armoured recovery vehicles to replace stock sent to Kyiv, detailed in Rheinmetall wins Bundeswehr order to backfill recovery vehicles sent to Ukraine. The company targets EUR 50 billion in sales and a margin above 20% by 2030.

Relationships

Rheinmetall's primary customer is the German Bundeswehr. It has active vehicle contracts with Australia (Boxer, Lynx IFV), Hungary (Lynx IFV factory), the Netherlands (Boxer), and Lithuania (new production facility). In Ukraine it operates a local joint venture supplying maintenance and repair, and has announced in-country armoured vehicle production. It holds a joint venture with Leonardo SpA (Italy) to produce the Lynx IFV for the European market. Rheinmetall shares Bundeswehr vehicle and ammunition frameworks with Krauss-Maffei Wegmann on Leopard tank programmes. Its share price rose roughly tenfold between February 2022 and early 2026, making it a bellwether for European defence investment sentiment.

What to watch

• Whether Rheinmetall reaches its stated 1.5 million 155mm shells per year by 2027.
• Progress of Lynx IFV bids in Greece, Romania, and other NATO markets seeking to replace Soviet-era platforms.
• Naval expansion: integration of NVL Group and any submarine or frigate awards.
• Completion of the automotive divestiture and its effect on the balance sheet.
• Whether the EUR 63.8 billion backlog converts to revenue on schedule as European defence budgets move from commitment to execution.