Rheinmetall has agreed with Finland's ICEYE to form a joint venture to make military satellites, part of a drive to repurpose automotive factories to serve the booming defence sector instead.
Germany's biggest arms manufacturer continues to expect an increase of 35% to 40% in sales this year, but said guidance could be upgraded if an expected surge in demand for military equipment was confirmed.
Rheinmetall AG (ETR: RHM) has been rapidly gaining in popularity thanks to its brand recognizability paired with the EU's ambitious €800 billion rearmament plan, strong quarterly results, and network of partnerships with other defense giants, but it has also grown exceptionally expensive.
The arms maker's preliminary earnings beat market forecasts and the company backed its full-year guidance.
Rheinmetall's Chief Executive Armin Papperger recently visited Volkswagen's Osnabrueck plant with other company representatives, days after he floated the possibility of buying the site and transforming it into a defense manufacturing facility.
Rheinmetall CEO Armin Papperger visited Volkswagen's Osnabrueck plant on Friday as part of a delegation of Europe's top ammunition maker, labour representatives said, in the latest sign of closer cooperation between the defence and auto sectors.
U.S. market volatility and Trump's tariffs have driven investors towards international stocks, with European defense stocks, notably Rheinmetall AG, showing strong growth. Rheinmetall benefits from increased European defense spending, supported by the European Investment Bank's funding and geopolitical shifts. Despite high valuation, Rheinmetall's robust cash flow, revenue growth, and strategic positioning justify a bullish outlook.
Rheinmetall , Europe's biggest ammunition maker, has overtaken the continent's top carmaker Volkswagen in terms of market valuation, in the latest sign of rising investor appetite for defence stocks.
Rheinmetall AG (OTCPK:RNMBF) Q4 2024 Earnings Conference Call March 12, 2025 9:00 AM ET Company Participants Armin Papperger - Chief Executive Officer Klaus Neumann - Chief Financial Officer Conference Call Participants Sven Weier - UBS Christoph Laskawi - Deutsche Bank George McWhirter - Berenberg Marie-Ange Riggio - Morgan Stanley Sash Tusa - Agency Partners David Perry - JPMorgan Dario Dickmann - HSBC Carlos Iranzo Peris - Bank of America Operator Welcome to the Rheinmetall AG Fiscal Year 2024 Report Call followed by a Q&A session. We apologize for the technical issues.
Volkswagen's factory in Osnabrueck would be a good fit for a conversion to military production, the CEO of Rheinmetall said on Wednesday, as the German carmaker considers ways to repurpose the site that could include a sale.
While 2024 sales grew 35%, boosted by increased demand, there was a dip in sales at its power systems and trade divisions at the start of of the year.
Rheinmetall , a major beneficiary of Europe's renewed push to invest in defence, said on Wednesday it expects significant sales growth in 2025 and promised to update guidance after recent geopolitical developments are taken into account.