Rheinmetall AG Unsponsored ADR (RNMBY) could be a great choice for investors looking to make a profit from fundamentally strong stocks that are currently on the move. It is one of the several stocks that made it through our "Recent Price Strength" screen.
Rheinmetall Resonant South Africa is Rheinmetall's response to the growing demand for ammunition, it said.
Rheinmetall AG (OTCPK:RNMBF) Q1 2025 Results Conference Call May 8, 2025 8:00 AM ET Company Participants Armin Papperger - Chief Executive Officer Klaus Neumann - Chief Financial Officer Conference Call Participants Sven Weier - UBS Christoph Laskawi - Deutsche Bank Marie-Ange Riggio - Morgan Stanley Benjamin Heelan - Bank of America David Perry - JPMorgan George McWhirter - Berenberg Dario Dickmann - HSBC Sash Tusa - Agency Partners Armin Papperger Thank you very much. Good afternoon, ladies and gentlemen.
Rheinmetall has been contacted by potential buyers of its civilian businesses and is in talks with them, as the German defence contractor seeks to focus on its booming military business, its CEO said.
Rheinmetall is benefiting from secular tailwinds, but the valuation remains a problem. Despite its growth, Rheinmetall is an asset-heavy, low-margin business. Despite strong growth prospects, the stock price might have gotten ahead of fundamentals.
Rheinmetall AG has shown significant growth, driven by high demand for defense systems, with a 46% sales increase and a 56% backlog growth. Despite economic pressures on its civil business, Rheinmetall's defense segments, particularly vehicle systems and ammunition, have seen substantial profit and margin expansions. The company's strong backlog and expected nominations indicate a robust growth trajectory, with a 25% upside and a $2,343 price target for FY27.
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.