Rheinmetall's Sales Goals for 2027

BERLIN (Reuters) – Rheinmetall aims for 20 billion euros ($21.08 billion) in sales by 2027, driven by increased defense spending from EU and NATO leaders in response to the Ukraine war, according to a Capital Markets Day presentation.

The company stated that there is potential for an 18% operating margin by 2027, highlighting increased market opportunities through its expansion into the U.S. and a joint venture with Italian defense giant Leonardo.

Shares in Rheinmetall (ETR:RHMG) rose 1.75% at 0941 GMT after the publication of their presentation slides.

Rheinmetall anticipates achieving approximately 10 billion euros in annual sales for the first time in 2024, following a 36% increase in sales from January to September, totaling 6.3 billion euros.

As Europe's largest ammunition producer, Rheinmetall recently signed a deal with Leonardo, which it claims has increased its market potential tenfold. Additionally, the upcoming acquisition of Loc Performance in the U.S., expected to close next month, is part of its strategy to quadruple sales in that market over the coming years.

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