'Rheinmetall's Boom: Europe's Defence Surge'

Rheinmetall, a key player in Europe's defence sector, sees substantial sales growth expected by 2025. Amid the war in Ukraine, the firm anticipates significant gains related to rearmament. Despite not accounting for all market potential, Rheinmetall is poised for increased revenue due to European military investments.

Rheinmetall, a primary beneficiary of Europe's renewed defence focus, predicts considerable sales growth by 2025. The company announced plans to revise its outlook, factoring in the evolving military dynamics in Ukraine.

Shares surged 6.2% in midday trading as Rheinmetall topped the DAX index. The share price has more than doubled in a year, hitting around 1,230 euros. As Europe's leading supplier of ammunition, the firm banks on increased European defence expenditure, especially with nations backing Ukraine amid fluctuating U.S. policies since the Trump inauguration.

Following a U.S. agreement to resume military aid to Ukraine, Rheinmetall projects a 25%-30% increase in sales this year with an operating margin of 15.5%. Though recent numbers fell slightly short, the company envisions capturing up to 400 billion euros from rising NATO budget targets by 2030.

(With inputs from agencies.)