Rheinmetall Q1 Earnings Rise Following Arms Spending Boom
Rheinmetall is needed by a large number of nations, now and in the future, to satisfy the sharp rise in demand for military equipment, chief executive Armin Papperger said
Rheinmetall reported higher first-quarter earnings on Tuesday, as the German arms manufacturer rides a defence spending boom following the war in Ukraine.
"Rheinmetall is needed by a large number of nations, now and in the future, to satisfy the sharp rise in demand for military equipment," chief executive Armin Papperger said in a statement.
The group, whose market value has more than quadrupled since Russia invaded Ukraine, is seeing a sharp increase in orders as Western governments look to replenish their stocks after supplying substantial amounts of arms to Ukraine.
The Duesseldorf-based firm's order backlog grew by 43 per cent to USD 43.3 billion euros in the quarter.
It also confirmed its 2024 sales guidance at around USD 10.7 billion.
The operating result rose to USD 144.51 million in the January-March period, representing a 60 per cent jump versus the same period last year, but still below Vara's consensus estimate of USD 154.7 million.
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