Founded in 1889, Rheinmetall began as an armaments manufacturer and has since become Germany’s largest defense contractor, specializing in military technology and automotive components. Initially focusing on metal processing and armament production, Rheinmetall expanded its expertise over the decades, especially during wartime.
Throughout the years, Rheinmetall diversified into the automotive industry, producing parts like sensors and power systems. However, the company has pivoted back towards defense, driven by global conflicts and increased demand for military equipment.
In recent years, Rheinmetall has become synonymous with advanced defense solutions, including Boxer armored transport vehicles and artillery for Germany and Ukraine. This resurgence in military spending has significantly boosted Rheinmetall’s profits. According to the Financial Times, the company now has a record-breaking order book of €48.6 billion, driven by conflicts in Ukraine and Gaza. Profits nearly doubled in 2024, thanks to rising defense contracts, including a major €2.2 billion deal for armored vehicles with the Bundeswehr.
Rheinmetall’s CEO, Armin Papperger, has been a prominent voice for European military support for Ukraine, pushing for strategic investments in new factories focused on tank maintenance and munitions production. This shift marks Rheinmetall’s deepening role in the geopolitical landscape, balancing military production with civil market technology through its Power Systems Division, which continues to generate over €1 billion in sales.
For more detailed information on Rheinmetall’s current growth and challenges, see the full Financial Times article here.