💼 Rheinmetall: Defence giant on the rise amid global conflicts! 🚀
The German company Rheinmetall $RHM.DE+2.6%,a leading player in the defense industry, currently has record orders worth 48.6 billion euros, a clear indication of the growing demand for military equipment in the context of the conflicts in Ukraine and the Middle East.
The company produces a wide range of military equipment, including armoured vehicles, artillery ammunition and tanks, such as Leopard 2. In recent years, it has significantly expanded its production capacity, not only in Germany, but also abroad, for example in Lithuania and in Ukraine, where it plans to build factories for the production of ammunition and armoured vehicles.
The company's sales for the first half of the year rose by a third to 3.8 billion euros, while operating profit almost doubled to 404 million euros. 📈
Rheinmetall also has significant plans to expand its activities in Czech Republicwhere it is working with the Group Czechoslovak Group to create a joint venture focused on the production and development of modern armoured vehicles on the Kopřivnice Tatra.
Managing Director Armin Papperger said that this momentum is likely to continue, expecting annual sales growth of around EUR 2 billion in the coming years. According to the CEO, the current interest in weapons is the largest he has ever seen. Some of the most important contracts include a contract with the German Bundeswehr for armoured vehicles Boxer worth 2.2 billion euros. 🛡️
Papperger has become a prominent figure in the European arms industry, which has also attracted international attention. The Russian Foreign Ministry recently described Rheinmetall's upcoming munitions factory in Ukraine as a "legitimate target" for the Russian army, which just goes to show how intense the current geopolitical situation is. 🌍
A company that once did business with Russia, is now primarily focused on the arms sector, although its power systems division continues to generate modest revenues, particularly in civilian markets.
This development clearly shows that the defence industry is in the midst of an unprecedented growth cycle. ⚙️
What is your opinion of this European company?
Yeah, great company. While its stock has really grown quite a bit over the past few years, it's one of the companies I could see continuing to grow even in this difficult market situation. Very good financials, growth and business. It's hard to find downsides here.