Surprisingly Strong Quarterly Results from Rheinmetall
Rheinmetall presented surprisingly strong results in the first quarter of 2025, significantly exceeding the expectations of the financial markets. The following points summarize the key highlights.
Financial Key Figures
- Revenue: Group revenue increased by 46% to €2.305 billion, while the market had only expected €1.947 billion.
- Operating Result: EBIT rose by 49% to €199 million, compared to analyst expectations of €165.8 million.
- Margin Development: The operating margin stood at 8.7%, which was in line with forecasts, but showed a more dynamic profitability in the defense sector.
Drivers of Growth
- Defense Business: The military sector recorded a revenue increase of nearly 73%, driven by rising demand in Europe and deliveries related to the Ukraine context.
- Order Intake: An increase in nominal orders of about 181% to €11 billion secures future growth.
Strategic Context
The company confirmed its annual forecast for 2025, expecting revenue growth of 25-30% and an operating margin of about 15.5%. However, Rheinmetall emphasized that current geopolitical developments, particularly in Eastern Europe, have not yet been fully accounted for in this forecast.
Market Reaction
The stock reacted positively to the figures and began to trend upwards again after a brief period of weakness. The market capitalization was recently around €56.7 billion – an indicator of increased investor interest in defense stocks.
The complete quarterly figures will be published on May 8, 2025, with further details on regional order distribution and margin development expected. For investors, it remains particularly relevant: Rheinmetall structurally benefits from the global increasing defense budget trend, with the current pace exceeding even optimistic expectations.