Rheinmetall Group concluded its 2024 fiscal year with a record-high operating profit, up by 61% to around €1.48bn.

The Düsseldorf-based firm also said on Wednesday that it is projecting “major high-volume orders from military customers” that will “ensure capacity utilization in the coming years”.

In 2024, Rheinmetall’s sales rose most in its defence business (50%) as this unit benefitted from rising demand linked to geopolitical instability.

Defence now accounts for around 80% of the group’s total sales revenue, which was up 36% and came in at around €9.8bn for the fiscal year.

That’s compared to the company’s previous forecast of around €10bn.

In 2024, the German armsmaker’s earnings after taxes increased by 38% to €808 million.

The firm’s order backlog reached a record high of €55bn, an increase of 44% compared with the previous year.

The group’s operating margin rose to 15.2%, and for the defence business, it reached 19%.

The board is proposing a dividend of €8.10 per share, compared to €5.70 in the previous year.

Rheinmetall’s Frankfurt-listed shares were up by more than 7% around 1pm CET.

Forecasts rising with European defence spending

The firm, which refers to itself as “Ukraine’s most important defence industry partner in the fight against Russian aggression”, is well-positioned to benefit from the dramatically changed European security landscape.

EU member states are looking to boost military capacity as US President Donald Trump threatens to withdraw support for the bloc, and Russia’s war in Ukraine threatens regional security.

In 2025, Rheinmetall forecasts annual sales to increase by 25% to 30% on a group level and between 35% and 40% in its defence business.

The company’s clients include the armed forces of the UK, Australia, the US and Germany.

“We have massively increased our capacities already and will continue to do so,” the CEO of Rheinmetall AG Armin Papperger said in a statement.

“Over the past two years, we have invested nearly €8 billion to build new plants, make acquisitions and secure supply chains. We are aware of our responsibility for the security of our country and for the defence capability of Europe,” he added.

“With a 50% sales growth in the defence business, Rheinmetall is on its way from being a European systems supplier to a global champion.”