Rheinmetall is also transforming some of its automotive facilities into hybrid plants to produce for both civilian and military sectors, as the automotive supply business faces declining significance.

Looking ahead, Rheinmetall forecasts a sales increase of 25% to 30% for 2025, further fueled by geopolitical tensions and the U.S. decoupling from Europe.

To meet this growing demand, CEO Armin Papperger announced plans to expand the workforce by 20%, aiming to increase employee numbers from approximately 32,000 to 40,000 within two years.

Rheinmetall's optimistic growth forecast does not yet factor in potential market improvements stemming from recent geopolitical developments, including discussions in Germany about increasing defense spending.

As Rheinmetall continues to navigate the evolving defense landscape, it plans to adjust its forecasts based on changing military needs and geopolitical events.

In 2024, Rheinmetall, a leading German defense company, reported a remarkable 36% increase in revenue to approximately €9.8 billion, alongside a 61% rise in operational profit to around €1.5 billion, marking a record high in its history.

European leaders are responding to calls for increased defense spending amid uncertainty over future military aid to Ukraine, further enhancing Rheinmetall's market potential.

This surge in financial performance is largely attributed to a significant increase in demand for military goods, driven by NATO countries ramping up their purchases in response to the ongoing conflict in Ukraine.

Public sentiment in Germany is shifting towards supporting increased defense spending, recognizing the importance of maintaining democratic stability in Europe.

The company has seen a 50% surge in defense sector sales in 2024, with expectations of further growth between 35% and 40% in the coming year.

On March 12, 2025, Rheinmetall's stock reached a record high of €1250.50, having more than doubled in value since the beginning of the year.

The company's stock price has skyrocketed over 1,000% since Russia's invasion of Ukraine in 2022, reflecting a broader trend of rising European defense stocks.