Introduction
The Rheinmetall share has marked a new record with a increase of 5.59%, underscoring the company’s sustained strength in the defense sector.
Fundamental Drivers
- Exceeding Expectations: In Q1 2025, Rheinmetall significantly surpassed analyst estimates—both revenue and operating profit were exceeded. The operating margin was 8.7%.
- Order Boom: Orders received increased by 181% to €11 billion, driven by German demand. The order backlog reached a record level of €62.6 billion.
Market Confidence and Forecasts
- Price Target Confirmation: A consensus among analysts sees a price target of up to €1,640.10, with current record prices potentially already surpassing these estimates.
- Annual Outlook Reiterated: Management maintains its forecast for 2025: revenue growth of 25–30% and an operating margin of ~15.5%.
Contextual Influences
- Geopolitical Situation: Global armament due to conflicts is driving the defense business, from which Rheinmetall, as a leading systems supplier, benefits.
- (Pre-)Delivery Effects: Parts of the Q2 revenue were already brought forward into Q1, which could lead to short-term volatility.
Risk Factors
Despite the positive momentum, aspects such as an overheated valuation, delays in large orders, or supply chain bottlenecks, as well as political regulatory risks in the defense sector, could weigh on the price.
In summary, the price increase reflects both the strong operational performance and the confidence in Rheinmetall’s strategic positioning—supported by a historically high order backlog and clear growth projections.