German defense group Rheinmetall anticipates sales growth of 25% to 30% in 2025, and forecasts an improvement in operating profit, with a margin of 15.5%, slightly higher than the 15.2% achieved in 2024.
However, Rheinmetall pointed out that these forecasts did not yet incorporate the potential market increase resulting from recent geopolitical developments, and would be adjusted in line with customer demand.
Last week, European leaders reaffirmed their commitment to boosting military spending, at a time when Donald Trump's administration is challenging US commitments to Europe. The European Commission plans to mobilize up to 800 billion euros for defense, including 150 billion in the form of loans to national governments. To find out more about both the geopolitical situation and the European plan, we recommend this article.
In 2024, Rheinmetall recorded sales of 9.75 billion euros, slightly below the 9.99 billion expected by analysts at Vara Research.
Rheinmetall is one of a long list of European defense stocks that are experiencing strong momentum as a result of the global geopolitical situation.
