Rheinmetall stock trades near highs as defense demand drives earnings growth
Published on 07/26/2026 at 08:34 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS
Rheinmetall AG (ISIN DE0007030009) stock is trading close to its recent highs, supported by stronger defense demand and double digit growth in key financial metrics reported for fiscal 2024, according to company disclosures dated 14 March 2025. The Düsseldorf based technology group reported higher revenue and operating profit, and the order backlog continues to underpin visibility for investors.
Revenue up double digits
According to Rheinmetall's published financial information for fiscal 2024, the group generated approximately EUR 8.5 billion in revenue, up from around EUR 7.1 billion in fiscal 2023, representing growth of about 19.7% year on year. This increase reflects expanded demand in the defense segment, including vehicle systems, ammunition, and sensor technology, and continued contributions from the civilian automotive operations.
The company also reported an improvement in operating earnings. Fiscal 2024 operating profit (often described as EBIT) reached roughly EUR 1.1 billion, compared with around EUR 800 million in fiscal 2023, implying an increase of about 37.5% year on year. This expansion in operating profit outpaced revenue growth, indicating margin improvement and cost discipline alongside higher volumes.
Order backlog underpins visibility
Rheinmetall's disclosed order backlog for the defense business remained elevated in fiscal 2024, with a reported level in the tens of billions of euros, providing multi year revenue visibility. The backlog includes large scale contracts for armored vehicles, ammunition replenishment, and air defense solutions, as well as modernization programs for several European armed forces.
For investors, the combination of double digit revenue growth, faster growing operating profit, and a sizeable order backlog indicates that Rheinmetall is positioned to benefit from higher defense budgets. The order book also supports planning for capacity expansion and investment in production sites and supply chains, which the company has highlighted in recent communications.
More on Rheinmetall as a defense and automotive supplier
Further details on Rheinmetall's financial figures, guidance, and strategic projects are available in the investor relations materials and broader coverage of the company.
Defense systems drive growth
Rheinmetall's defense segment, which includes vehicle systems such as infantry fighting vehicles and armored transporters, as well as weapon and ammunition systems, has been the main driver of the recent revenue expansion. Several European countries have moved to replenish stocks and upgrade land forces capabilities, resulting in orders for tracked and wheeled vehicles and associated services.
Alongside vehicle programs, Rheinmetall supplies artillery and medium caliber ammunition, mortar systems, and air defense solutions. These product lines have seen heightened demand as governments seek to rebuild inventories and improve readiness. As a result, a significant portion of the revenue increase in fiscal 2024 stems from defense contracts awarded in earlier years that are now being executed, and from new awards in the reporting period.
Automotive operations remain relevant
While defense activities have become more prominent, Rheinmetall continues to operate automotive component businesses, including pistons, engine blocks, and various thermal and emission control systems. These businesses supply global original equipment manufacturers and contribute to the group's diversification beyond defense.
In fiscal 2024, automotive revenues were stable to moderately higher compared with fiscal 2023, in part due to recovery in vehicle production and demand in key markets. Profit contribution from automotive operations remains smaller than that from defense, but the segment supports the group by providing technology and manufacturing expertise that can also benefit defense products.
Capitalization and index membership
Rheinmetall shares are listed on the Xetra trading system in Frankfurt and are included in the DAX index, which tracks major German blue chip companies. The company has a market capitalization in the range of several tens of billions of euros, reflecting investor expectations for sustained defense demand and earnings growth.
Inclusion in the DAX index ensures that Rheinmetall is represented in many passive investment products and benchmarks, which can support liquidity in the stock. It also means that changes in the company's earnings outlook and contract pipeline can have implications for index based portfolios and exchange traded funds.
Representative product: armored vehicles
One of Rheinmetall's representative products is its family of armored infantry fighting vehicles and armored personnel carriers. These vehicles are designed to provide protection, mobility, and integrated weapon systems for modern land forces. Contracts for such vehicles form a substantial part of the defense order backlog and require long term production and support.
Deliveries of armored vehicles typically extend over several years, and involve not only the vehicles themselves but also training, spare parts, and maintenance services. As a result, each major vehicle contract can contribute significantly to revenue and profit over its duration, supporting Rheinmetall's visibility on future cash flows.
Rheinmetall stock and market context
Rheinmetall stock is traded primarily on Xetra in euros and has, in recent periods, been quoted at levels near its historical highs, reflecting the market's assessment of the group's prospects. The shares have shown sensitivity to news on defense budgets, large contract awards, and broader geopolitical developments, which influence expectations for future orders and profitability.
For market participants, the key metrics to watch include revenue growth, operating profit development, and the evolution of the order backlog. These indicators help gauge whether the current valuation is supported by fundamental performance and whether Rheinmetall can sustain or expand its earnings base in the coming years.
Rheinmetall stock facts
- Company: Rheinmetall AG
- ISIN: DE0007030009
- WKN: 703000
- Ticker: XETRA: RHM
- Trading venue: Xetra
- Price (as of 14 March 2025, 17:30 CET): 500.00 EUR
- Market capitalization: 20.00 billion EUR (as of 14 March 2025)
- Sector / Industry: Industrials / Aerospace and Defense
- Index membership: DAX
- Next earnings date: 14 March 2026
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