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Rheinmetall Projects Record Growth as Europe Boosts Defense Spending

Germany's largest arms manufacturer anticipates unprecedented demand as European nations expand military budgets and reduce reliance on the U.S.

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A Lynx armoured fighting vehicle manufactured by Rheinmetall is displayed at the Eurosatory international land and air defence and security trade fair in Villepinte, France, June 17, 2024. REUTERS/Benoit Tessier/File Photo
Tank maker Rheinmetall said 'an era or rearmament has begun in Europe that will demand a lot from all of us'
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Overview

  • Rheinmetall forecasts a 25-30% increase in total sales for 2025, with defense revenues expected to grow by 35-40%, driven by geopolitical shifts and Europe's rearmament efforts.
  • European countries are ramping up defense spending in response to Russia's invasion of Ukraine and concerns over the U.S.'s reduced commitment to European security under President Donald Trump.
  • Germany, under likely future chancellor Friedrich Merz, plans to allocate hundreds of billions of euros to bolster its defense and infrastructure sectors.
  • The European Commission has proposed mobilizing up to €800 billion for defense, including €150 billion in loans to national governments to strengthen military capabilities.
  • Rheinmetall is adapting its operations to meet rising demand, with plans to shift some civilian production facilities to munitions manufacturing and expand its presence in both European and U.S. markets.