German defense firm Rheinmetall reported a record operating result for 2025 and significantly increased its dividend. The order backlog reached nearly 64 billion euros, fueled by the defense boom. For 2026, the company forecasts a sales increase of 40 to 45 percent.
Rheinmetall, Germany's largest defense contractor headquartered in Düsseldorf, released its 2025 annual report on March 11, 2026. Sales rose 29 percent to about 9.9 billion euros. Operating profit climbed 33 percent to 1.8 billion euros, with a profit margin of 18.5 percent—a new record. The munitions division contributed significantly with a margin exceeding 29 percent. Net profit stood at 0.8 billion euros, up 3 percent.
The order backlog reached a high of 63.8 billion euros, including binding orders and framework agreements. CEO Armin Papperger stated: "We have achieved a new record operating result and will further increase the group's profitability. We are well positioned for new major projects of the armed forces."
For 2026, Rheinmetall anticipates sales of 14.0 to 14.5 billion euros, representing growth of 40 to 45 percent. The operating profit margin is expected to rise to 19 percent. Growth is supported by acquisitions such as the military division of the Lürssen shipyard, enabling production of ships and aircraft parts. The largest plant is in Unterlüß, and parts for the F-35 fighter jet are manufactured in Weeze.
The boom stems from the rearmament of the Bundeswehr and NATO allies due to the Russian threat, though some orders have arrived later than expected.
