German defense manufacturer Rheinmetall AG has sharply lifted its long-term outlook, announcing plans to achieve €50 billion in annual sales by 2030, a fivefold increase from its 2024 revenue of €9.8 billion. The revised target, unveiled during the company’s Capital Markets Day on November 18, 2025, positions Rheinmetall at the upper end of its previous guidance range of €40–50 billion Morningstar Investing.com Philippines CNBC.
Growth Drivers
The company’s expansion strategy is being fueled by surging demand for weapons systems, vehicles, and ammunition, particularly in Europe, where defense budgets have risen sharply in response to Russia’s war in Ukraine. Rheinmetall supplies both Ukraine directly and NATO allies, with orders spanning artillery, air defense, and armored vehicles CNBC Yahoo Finance.
Management confirmed that the new target includes planned mergers and acquisitions, but excludes potential U.S. contract wins, leaving room for further upside.
Profitability Outlook
Rheinmetall expects its operating margin to exceed 20% by 2030, up from 15.2% in 2024, while its cash conversion rate is projected to surpass 50%. Analysts at Jefferies noted the guidance is 30% above consensus expectations, implying adjusted EBIT of at least €10 billion by the end of the decade Morningstar Investing.com Philippines.
Market Reaction
Shares in Rheinmetall rose more than 3% on the DAX index following the announcement, defying broader market declines. Since the outbreak of the Ukraine war, the company’s stock has surged nearly 900%, reflecting investor confidence in its ability to capitalize on heightened defense spending azzet.com.
Strategic Context
CEO Armin Papperger, who has spent his career at Rheinmetall, described the growth trajectory as “like a wonder world.” The company’s aggressive targets highlight how Europe’s defense sector is undergoing structural expansion, with Rheinmetall positioning itself as a central supplier in NATO’s rearmament cycle Morningstar CNBC.
Outlook
By setting a €50 billion sales target, Rheinmetall signals its intent to remain at the forefront of Europe’s defense industry transformation. With geopolitical tensions unlikely to ease, the company’s growth ambitions underscore the intersection of security policy and industrial strategy that is reshaping the continent’s economic landscape.
Rheinmetall Defence Kiel Picture by KarleHorn
Sources: Morningstar Morningstar Morningstar; Investing.com Investing.com Philippines; CNBC CNBC; Yahoo Finance Yahoo Finance; MSN MSN; Azzet azzet.com.
