Rheinmetall Projects Major Growth as Europe Expands Defense Spending

Germany's largest arms manufacturer forecasts record sales growth driven by increased European defense budgets and reduced reliance on U.S. security commitments.

• Rheinmetall expects overall sales to grow by 25-30% in 2025, with defense sales projected to increase by 35-40%, fueled by geopolitical shifts and European rearmament plans.
• The company reported record 2024 revenues of €9.8 billion, a 36% increase from 2023, with defense revenues rising by 50%.
• European nations are ramping up defense spending in response to Russia's invasion of Ukraine and waning confidence in U.S. security guarantees under President Donald Trump.
• Germany's likely next chancellor, Friedrich Merz, has proposed exempting defense spending from constitutional limits, potentially unlocking tens of billions of euros for military investment.
• The European Commission plans to mobilize up to €800 billion for defense, including €150 billion in loans to national governments, signaling a significant shift in regional defense priorities.

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