Rheinmetall (RHM) investor relations material

Strategic positioning and market drivers

• Positioned as an all-domain defense system house with high backward integration and a new five-segment structure from 2026: Vehicle Systems, Weapon and Ammunition, Air Defence, Digital Systems, and Naval Systems.

• Significant order backlog (~€63.8bn in 2025) and sales growth driven by increased defense spending, especially in Germany and NATO countries.

• Partnerships and JVs with Lockheed Martin, ICEYE, and others accelerate time to market and expand technological capabilities.

• Major market opportunities in Germany, Italy, USA, and Ukraine, with multi-billion euro/dollar programs in vehicles, ammunition, air defense, and digitalization.

• Geopolitical risks and increased NATO spending targets drive demand for advanced defense solutions.

Segment performance and growth outlook

• Vehicle Systems: Sales potential of €13-15bn by 2030, driven by large-scale programs like Boxer and Lynx, with Germany as a key customer.

• Weapon and Ammunition: Sales potential of €14-16bn by 2030, ramping up artillery and missile production, aiming for 100% vertical integration.

• Air Defence: Sales potential of €3-4bn by 2030, with strong demand for gun-based and C-UAS systems, especially for critical infrastructure protection.

• Digital Systems: Sales potential of €8-10bn by 2030, focusing on battlefield digitalization, drones, and F-35 center fuselage production.

• Naval Systems: Sales potential of ~€5bn by 2030, following the acquisition of Naval Vessels Lürssen and integration of shipbuilding capabilities.

Financial performance and capital allocation

• FY 2025 sales reached €9.9bn, with EBIT of €1.68bn and net earnings of €835m; operating margin at 18.5%.

• Strong cash flow from operations (€2.29bn in 2025) and low leverage (net debt/EBITDA below zero), supporting opportunistic M&A.

• Capex focus on expanding production capacity, especially in vehicles and energetics, with over €8bn investment planned over five years.

• Dividend per share proposed at €11.50 for 2025, continuing a decade of strong dividend growth.