- The German defense contractor Rheinmetal is The share price rose more than 1,000% after Russia attacked Ukraine in 2022. Because the EU plans to boost 800 billion euros in defense, in defense, Reinmetal He expects growth to remain strong.
The German defense contractor Rhinmetal sees unprecedented benefits before, as Europe begins with massive military building, even after reporting on already strong growth.
Based in Dusseldorf, Germany, the company reported 2024 Total income of 9.8 billion euros on Wednesday, which is 36% from 2023. The defense defense led the company’s sales growth last year, increasing by 50% to 7.6 billion euros. In addition, the backlog increased by 44% to 55 billion euros for a new record.
Last year’s growth helped Europe’s continued military assistance to Ukraine. Since Russia attacked Ukraine in 2022, the price of Rhinmetal’s shares rose to more than 1,000%.
Meanwhile, the European Union has recently announced plans to raise defense costs by 800 billion euros ($ 867 billion) as US historical allies are demanding more responsibility for their security.
“In Europe, the era of re -examination that will require a lot of us,” CEO Armin Papper said in A. statement. “However, it also brings us to the prospect of Rheinmetal growth for the coming years that we have not experienced before.”
For this year, Rainmetal expects total sales to increase by 25%-30%and defense sales to rise to 35%-40%. While those figures will be less than the 2024, real sales by the end of the year may turn out to be even greater.
Reinmetal noted in her report that the prospect is not taken into account by “geopolitical developments in recent weeks”, saying that updates to his predictions could come later, as the demands of her military clients are becoming clearer.
“With a 50% growth in sales in the defense business, Rhinmetal is on the way to be a supplier of European systems to a global champion,” Papper said.
In recent years, the European leader in ammunition has invested nearly 8 billion euros in new production facilities, acquisitions and security chain security. In January, Reinmetal Posted He received a majority stake in Bavarian software developer who specializes in digitization of warfare.
In addition to the production of rockets and bombs, Rheinmetal also makes tanks, air defense systems and autonomous ground vehicles. Most importantly, it is produced by the main fighter tank “Panther KF51”. A large supplier of Ukraine, Rheinmetal has plants in the military country along with Lithuania, Hungary and Romania.
In addition, the company seems to continue its growth in Germany and is supposedly interested in a Volkswagen Factory in Osnabrick.
On Wednesday, Papper said the facility would be “very suitable” for the company’s expansion plans and would be more acceptable than building a factory from the ground.
Papper warned that although there was no concept of Rheinmetal to move to Volkswagen grass, things could still move fast.
“One thing is clear: Before building a new tank factory in Germany, we will certainly consider it,” he said.
This story was originally shown on Fortune.com
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