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
-
![Orchestrating operational readiness across every defence domain]()
Orchestrating operational readiness across every defence domain
Are all systems ready for the next mission? Have upgrades been applied? Are all assets aligned to deploy together, on time and fully prepared? In modern defence operations, readiness is no longer measured platform by platform. It is measured by how well people, assets, data and decisions move together — across land, sea and air.
-
![How deepening AI usage can boost efficiency and maximise effects for forces]()
How deepening AI usage can boost efficiency and maximise effects for forces
Saab has outlined how it is using artificial intelligence to make training more like electronic gaming, while the UK’s Power Size Technologies is applying the same technology to better evaluate and design vehicle capability, moving AI-enabled innovation further upstream from the frontline.
-
![From systems integrator to multi-domain solutions provider (video)]()
From systems integrator to multi-domain solutions provider (video)
Philipp von Brandenstein, Head of Corporate Communications at Rheinmetall, explains how Eurosatory 2026 marked a new stage in the company's evolution.
-
![US Pentagon pushes for major reform of defence acquisition system]()
US Pentagon pushes for major reform of defence acquisition system
The US Department of Defense has requested new contracting authorities from Congress, using the Army's MV-75 Cheyenne programme to demonstrate how competition, digital engineering and closer industry collaboration could accelerate acquisitions.
-
![US speeds up B61-13 nuclear bomb production as programme moves further ahead of schedule]()
US speeds up B61-13 nuclear bomb production as programme moves further ahead of schedule
The US government plans to accelerate production even further after achieving key B61-13 milestones months ahead of schedule, as the programme advances amid growing US-China strategic competition.
