Weapons maker Rheinmetall benefits as NATO countries rearm

German arms manufacturer Rheinmetall has set itself higher financial targets for the medium term because of the rearmament now under way in many NATO countries, reported dpa.

The Düsseldorf-based group wants to achieve sales of between €10 billion and €11 billion ($10.3 billion to $11.4 billion) in 2025. The figure was announced on Wednesday at an investor event in Vienna.

The operating profit margin, by which Rheinmetall measures its profitability, will rise to around 13%.

For the current year, the company has set itself a target of around 15% organic sales growth compared to last year's sales of €5.66 billion, with a margin of more than 11%. In February 2021 - before the outbreak of the Russian war of aggression against Ukraine - Rheinmetall had forecast sales of around €8.5 billion by 2025, with a margin of 10% or more.

Since then, the outbreak of war in Ukraine has significantly changed the security situation in NATO countries. Rheinmetall is hoping for a large share from the special fund of €100 billion put aside for better equipping the German armed forces, for example.

The company builds tanks and other military vehicles, produces weapons and ammunition, and also supplies defence electronic systems. The group's share price jumped with the outbreak of the war in Ukraine.