Rheinmetall rides high on Ukraine war and European demand
Rheinmetall has boosted its capability to manufacture 155mm and other ammunition with its purchase of Expal. (Photo: Rheinmetall)
The war in Ukraine has not only seen Rheinmetall and its subsidiaries up the tempo to meet demand for ammunition but also support air defence and vehicle requirements.
Germany’s Rheinmetall is booming on earnings driven by the war in Ukraine, particularly the massive demand for ammunition, and European countries looking to strengthen their defensive posture, particularly those closest to Russia.
The company reported that for the first quarter of 2024, consolidated sales climbed by €218 million or 16% to €1.581 billion compared to the same period in 2023 of €1.363 billion, which, when adjusted for currency effects, is up 17%.
Operating earnings amounted to €134 million as of 31 March, up on the previous year’s figure of €83 million.
According to the company “the improvement in operating earnings relates in particular to the strong contribution by Rheinmetall Expal Munitions, which was acquired in the previous year.”
The Weapon and Ammunition division generated sales of €362 million in the first quarter of 2024, outperforming the figure for the previous year by €149 million or 70% and key projects included artillery orders for Germany and Ukraine.
The backlog for the division more than doubled, rising by €6.394 billion or around 123% to €11.6 billion as of 31 March. The main factor driving this was the signing of two multi-year multi-billion Euro ammunition framework agreements in the second half of 2023 for the German government and the Ukrainian armed forces.
Sales in in the company’s vehicle systems business were up by €31 million or around 7% year-on-year at €493 million for the first three months of 2024 with the company noting “the increase in sales relates to projects for the delivery of tactical vehicles in particular".
More from Defence Notes
-
![Leonardo unveils plans for Michelangelo air defence dome]()
Leonardo unveils plans for Michelangelo air defence dome
The new multi-layered defence system will harness AI to neutralise airborne threats and protect Europe from Russian aggression.
-
![What will next-gen counter-UAS capabilities for the US look like?]()
What will next-gen counter-UAS capabilities for the US look like?
Future US counter-uncrewed aerial system solutions are likely to require a flexible, multi-layered approach to tackle a broad spectrum of new threats as they emerge.
-
![Elbit Systems awarded $2.3 billion contract as results soar]()
Elbit Systems awarded $2.3 billion contract as results soar
The company’s order backlog as of 30 September totalled $25.2 billion and more than a third of this is scheduled to be fulfilled before the end of 2026.
-
![US military foresees growing use of 3D printing]()
US military foresees growing use of 3D printing
Advanced manufacturing has evolved to meet military requirements and now supports multiple US critical assets, including Arleigh Burke-class destroyers, F-18, F-22, F-35, Bradley, HMMWV and Patriot.
