Rheinmetall expects sales to almost double by 2026
In view of the war in Europe and rising defense budgets in Western countries, the armaments group Rheinmetall is aiming for even stronger growth in the coming years. Sales are now expected to increase by an average of around a fifth each year until 2026. This was announced by the Düsseldorf-based DAX-listed company on Tuesday at an investor event in Unterlüß, Lower Saxony.
In response to Russia's war against Ukraine, defense budgets are increasing significantly this year, Rheinmetall made clear in the documents for the capital market day for investors and analysts. The demand for defense systems is increasing in the NATO states. These include warships, vehicles and tanks, aircraft and ammunition, as well as network systems and protective clothing.
Rheinmetall's sales are expected to increase to 13 to 14 billion euros by 2026. By way of comparison, the management has so far forecast sales of 7.4 to 7.6 billion euros for this year. Analysts previously expected sales of just under 12 billion euros in 2026, with the order backlog supporting the ambitions: The Group already has more than 45 percent of the calculated turnover as orders on the books for 2026. And according to the Group's estimates, further orders are likely to be added.
The Düsseldorf-based company's armaments division, which is expected to contribute around 11 billion of sales in three years' time, will remain the main source of returns. This includes Rheinmetall's business with ammunition and weapons, vehicle systems and electronics. The profitable ammunition business in particular is set to grow significantly, from 1.5 billion euros in sales last year to around 4 billion euros in three years. Rheinmetall is significantly expanding its production capacities in the wake of upcoming orders.
Due to escalating defense budgets in Western countries and the ongoing war in Europe, Rheinmetall's demand for weapons, warships, vehicles, tanks, aircraft, and ammunition has significantly increased. By 2026, Rheinmetall's ammunition business alone is projected to generate sales of approximately 4 billion euros, with the company expanding its production capabilities to meet upcoming orders in this sector.
Source: www.dpa.com
