Rheinmetall Stock: Historic Growth Fuels Ambitious Outlook

Rheinmetall has reported exceptional financial results for 2024, with revenue surging 36% to €9.75 billion. The German defense giant's operating profit jumped an impressive 61% to €1.48 billion, improving its operating margin from 12.8% to 15.2%. Shareholders will benefit from a significantly increased dividend of €8.10 per share, up from the previous €5.70. Looking ahead, the company forecasts continued strong momentum with projected revenue growth of 25-30% for 2025, targeting between €12.2 and €12.7 billion. The defense specialist's stock performance has been equally remarkable, nearly doubling in value since the beginning of the year and breaking the €1,200 threshold in early March-a dramatic increase from trading below €100 when Russia's invasion of Ukraine began in February 2022.

Long-term Growth Trajectory

The company's order backlog reached a record €55 billion by the end of 2024, reflecting sustained demand for defense equipment amid Europe's shifting security landscape. Rheinmetall has set ambitious medium-term goals, aiming for approximately €20 billion in revenue by 2027 with an operating margin of around 18%. This outlook is supported by projected high single-digit annual growth in European defense budgets through 2035. The military segment has been particularly profitable, achieving a 19% operating margin and driving the company's overall performance. Rheinmetall's growth strategy capitalizes on geopolitical factors, including continued support for Ukraine and the European Commission's plans to mobilize up to €800 billion for European defense initiatives.