Düsseldorf-based Rheinmetall AG significantly expanded its business with the armed forces in fiscal year 2025 and further increased its profitability, as was emphasized at the presentation of the annual balance sheet. While Group sales rose by almost 30%, the operating result improved by a third compared to the previous year. The order backlog also grew thanks to “high-volume major orders”. The tense security situation underpins the “promising position” of the Group, which is playing an “increasingly important role in the necessary increase in defense capabilities in Germany and its partner countries”, it said.
With the carve-out of the automotive activities, which are up for sale, the Group intends to focus entirely on the defense business from now on. Through acquisitions and strategic partnerships in the defense sector, the transformation to a comprehensive system house for the armed forces has been completed at the same time.
Rheinmetall plans to strengthen its maritime presence following the acquisition of naval shipbuilder NVL. The EU Commission approved the takeover in February, enabling Rheinmetall to integrate four former Lürssen shipyards-Blohm+Voss, Norderwerft, Neue Jadewerft, and Peene-Werft-along with their employees into a new Naval Systems division. NVL will complement Rheinmetall’s existing land and air capabilities as the company shifts to a full-spectrum defense systems provider.
CEO Armin Papperger stressed that growing geopolitical tensions are driving demand for modern defense technologies. He noted that Rheinmetall is preparing to accelerate naval production capacity to support German and European security needs. The company sees maritime defense as a crucial growth area, aligning with rising defense budgets and long-term procurement programs.
Financially, Rheinmetall recorded €9.9 billion in turnover for 2025-an increase of 29%-driven largely by military investment across Europe. Sales within Germany rose to 38% of total revenue, while the order backlog reached €63.8 billion, setting a new record. The company expects NVL’s integration to further boost revenue growth and strengthen its strategic position in the global defense market.
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