German Arms Maker Rheinmetall Expects Sales to Reach $58 Billion in 2030 — Update

By Cristina Gallardo

German defense manufacturer Rheinmetall said it expects sales to reach about 50 billion euros ($57.96 billion) in 2030, five times what it reported last year.

The new target comes at the upper end of Rheinmetall's previous guidance of between 40 billion and 50 billion euros, and includes mergers and acquisitions but excludes potential order wins in the U.S., the company said Tuesday.

Rheinmetall's operating margin should rise to more than 20% by the end of the decade, while its cash conversion rate should surpass 50% by 2030, it said.

Speaking during the company's capital markets day, Chief Executive Armin Papperger, who has spent all his career at Rheinmetall, said seeing these figures was "like a wonder world."

In 2024, Rheinmetall's sales amounted to 9.8 billion euros, with an operating margin of 15.2% and a cash conversion rate of 70.1%.

Jefferies analysts said Rheinmetall's new 2030 sales outlook is a strong guidance, at 30% ahead of consensus.

Shares in Rheinmetall were up 3.6% at 1,785 euros in Frankfurt, after rising more than 4% earlier in the session.

Germany's increasing defense budget is the biggest driver for Rheinmetall's rising sales target, he said. Other European countries are following suit, especially in the Baltic region, which are more wary of the threat posed by Russia, he added.

Europe's demand for air defense systems offers a big business opportunity for Rheinmetall, Papperger added. He estimates that protecting Germany's eastern border with air defense systems would cost about 24.6 billion euros, at a price of about 1.9 billion euros per 100 kilometers.

Rheinmetall is addressing all the gaps in military equipment flagged by NATO, from air defense systems to modern artillery equipment to electronic warfare, drones, and air transport, Papperger said.

In 2030, the vehicle systems business should contribute between 13 billion euros and 15 billion euros, while the weapon and ammunition segment should see sales between 14 billion euros and 16 billion euros. Air defense sales are expected to range between 3 billion euros and 4 billion euros in 2030. Rheinmetall's digital business, meanwhile, should contribute between 8 billion euros and 10 billion euros that year, it said.

Write to Cristina Gallardo at cristina.gallardo@wsj.com

(END) Dow Jones Newswires

November 18, 2025 05:13 ET (10:13 GMT)