Rüstung: Rheinmetall macht viel mehr Geschäft, senkt aber Prognose

Deutschland's largest arms company, Rheinmetall, continues its rapid growth trajectory but must modestly lower its expectations. According to the defense weapons manufacturer from Düsseldorf, their revenue increased by more than a third (38 percent) to 8.4 billion euros in the first nine months of the year. The company's operating profit soared by more than two thirds (69 percent) to 1.3 billion euros.

However, Rheinmetall now only projects annual revenue of around 13.2 billion euros, down from the previously announced range of 13.7 to 14.2 billion euros. The lower forecasts stem from potential delays in the Boxer troop transporter project and artillery ammunition production, according to company statements. The earnings downgrade did not sit well with the stock market, as Rheinmetall's shares briefly dropped by up to 16 percent on Thursday morning.

Firm CEO Armin Papperger remains optimistic, noting that the company's growth trajectory is solid and that it has managed to maintain high profitability despite the lower projections. Papperger expressed satisfaction with the business figures, stating that they have seen strong growth with high profitability and that the favorable order book gives them the opportunity to sustainably expand their capacities.

Rheinmetall sells artillery ammunition, tanks, anti-aircraft guns, military trucks, ships, drones, and satellite imagery. Employment has also increased at the defense contractor: the company now employs around 31,000 full-time staff, 6,000 more than a year ago. The company headquarters are located in Düsseldorf, with the largest Rheinmetall plant in Lower Saxony, originally used for car parts, now being converted for the production of military goods, such as anti-aircraft towers and satellite components.