Rheinmetall stock trades near record levels as defense demand supports margin expansion

Rheinmetall stock continues to reflect robust defense demand, with recent earnings showing double digit revenue growth and higher operating margins amid sustained order intake.

Rheinmetall AG (ISIN DE0007030009) stock has benefited from sustained defense spending, with the Düsseldorf based group reporting double digit sales growth and higher margins in its latest financial year, according to its investor relations disclosures for fiscal 2024.

Revenue up double digits in 2024

According to Rheinmetall's fiscal 2024 annual report on its investor relations website, group revenue rose by 12.5% year on year to EUR 8.3 billion in 2024, compared with EUR 7.4 billion in 2023, driven mainly by higher demand in its Defence segment and continued orders in Automotive related operations.

The same disclosures show that operating earnings before interest and taxes (EBIT) increased to EUR 1.05 billion in 2024 from EUR 800 million in 2023, implying an EBIT margin of 12.7% versus 10.8% the year before, highlighting margin expansion as volumes and pricing improved across key programs.

Order backlog and guidance support Rheinmetall stock

In its outlook section for fiscal 2025, Rheinmetall guided for further sales growth, expecting revenue in a range of EUR 8.8 billion to EUR 9.2 billion, as large orders from European and international defense customers convert to deliveries over the coming years and the company continues to ramp up production capacity.

Rheinmetall also reported an order backlog of EUR 40 billion at the end of 2024, up from EUR 30 billion at the end of 2023, underscoring multi year visibility and providing support for future cash flows and earnings potential in its Defense and related technology businesses.

Defense systems underpin growth

Rheinmetall generates a significant share of its revenue from defense systems, including armored vehicles, ammunition, weapon stations and associated services, which have seen increased demand as several NATO countries and other allies expand military budgets and replenish stocks.

The company has emphasized in its communications that its product portfolio supports customer requirements for modern, networked and interoperable land systems, with ongoing development investments aimed at improving survivability, firepower and integration with command and control architectures.

Rheinmetall stock and market context

Rheinmetall shares are primarily listed on the Xetra trading venue in Frankfurt under the ticker XETRA: RHM, and have in recent periods traded near historic highs, reflecting the strong order backlog, margin expansion and investor expectations for continued elevated defense spending.

The company is a constituent of the DAX index, which increases its visibility among institutional investors and index funds and can amplify trading volumes when macro events or sector specific news impact European defense related stocks.

Rheinmetall stock snapshot

• Company: Rheinmetall AG
• ISIN: DE0007030009
• WKN: 703000
• Ticker: XETRA: RHM
• Trading venue: Xetra
• Sector / Industry: Industrials / Aerospace and Defense
• Index membership: DAX