Yesterday evening Rheinmetall announced a 46% y-o-y increase in Q1 revenue, thanks to the performance of its defense division. Between January and March, revenue came in at €2.31bn, well above analysts' expectations of €1.95bn.
Military sales jumped 73%, leading to a 96% increase in operating profit in this division. Group-wide, profit is expected to reach €199m in the quarter, up 49% and higher than analysts' expectations of €165.8m.
Rheinmetall also announced a 181% surge in orders, now totaling €11bn in Q1, mainly thanks to contracts with the German government. This momentum has propelled its order book to a record level of €62.6bn.
Based on this performance, the board of directors is maintaining its forecasts for the full year 2025. The group is still aiming for revenue growth of between 25% and 30% compared with €9.75bn in 2024, and anticipates an operating margin of 15.5%, without taking into account any improvements in the European, German or Ukrainian markets.
Full first-quarter results will be published on 8 May. The stock is up sharply on the Frankfurt Stock Exchange, having already more than doubled since the beginning of the year. Rheinmetall is thus the second-best performer in the Stoxx 600, the broad European index, in 2025. Six of the seven best performers in this index are defense companies or companies with defense activities. These stocks are benefiting from the geopolitical environment and the prospect of higher military budgets in Europe.
Source: MarketScreener
These results have led several analysts to reiterate their positive opinion on the stock. Jefferies, for example, still considers Rheinmetall – cleverly renamed "Re-arm-Metall" – to be the top pick in the sector. Despite the spectacular rise in the share price, the growth outlook for the coming years remains very strong. This is why the stock is still part of Marketscreener's European investment portfolio.
