While 2024 sales grew 35%, boosted by increased demand, there was a dip in sales at its power systems and trade divisions at the start of of the year.

Since the start of the war in Ukraine, the company moved quickly to meet Europe’s growing need for military spending.

Rheinmetall AG is projecting sales at its main defense business will grow as much as 40% this year as Europe ramps up spending on the military.

Rheinmetall plans to hand out more than €350mn to shareholders, as Germany’s largest weapons contractor reported record orders and profits amid a European scramble to boost defence spending.

Rheinmetall, a major beneficiary of Europe's big push to invest in defence, said on Wednesday it expects significant sales growth in 2025 and that it would update its outlook to take into account recent developments in the war in Ukraine.