On November 6, German defense corporation Rheinmetall announced a remarkable growth in revenue and profit, thanks to the high demand for weapons in the context of the continued conflict in Ukraine and the sharp increase in the European Union's defense budget.
According to the third quarter report, the group's revenue increased by 20% to 7.5 billion euros. Operating profit increased by 18%, reaching 835 million euros.
The Dusseldorf-based group said its inventory has reached a record 64 billion euros. The group's stock value has nearly tripled over the past year due to demand for tanks, armored vehicles, artillery shells and many other weapons that Rheinmetall supplies to Ukraine.
CEO Armin Papperger commented that Rheinmetall is becoming a global defensive champion. Due to strong demand growth, the group is expanding production with 13 facilities under construction or upgrading in many countries in the European Union, including a new factory in Lithuania and plans to deploy in Latvia and Bulgaria. Ukraine, the European Union and Germany continue to be the group's core markets.
Germany has become the second largest arms supplier to Ukraine, after the US. Berlin has even changed the budget rules to maintain long-term defense spending, surpassing the €100 billion fund set up after the conflict in Ukraine escalated in 2022. Prime Minister Friedrich Merz has repeatedly emphasized the goal of building the strongest army in Europe.
This stance was harshly criticized by Moscow. Russia has accused the West of pursuing the trend of "reckless mediocrization" and asserted that the provision of weapons to Kiev will only prolong the conflict.
