German arms maker Rheinmetall posts record profit in 2022

The German manufacturer of weapons Rheinmetall had a record year in 2022 and is approaching an order book of 30 billion euros, Chief Executive Armin Papperger said in an interview with Reuters.

“In 2022, we had a very good year, a record year”, he said, stating that the fourth quarter will still beat the good results of the third quarter.

“We are approaching a €30 billion backlog, and I expect to see €40 billion next year,” Papperger said. the manufacturer of weapons sells a whole range of military products, but is probably most famous for supplying the 120mm cannon for the German Leopard 2 tank.

Papperger said he expects to see at least 15% to 20% growth in Rheinmetall’s defense division in the coming years, with the civilian business likely to account for just 20% of sales in 2025.

As of Tuesday, Papperger had raised the group’s medium-term sales outlook, anticipating a gain generated by higher investment in military products due to the war in Ukraine.

Rheinmetall expects sales to grow to 11 billion to 12 billion euros in 2025, he told German magazine Stern.

The projection is higher than the range of 10 billion to 11 billion euros that the manufacturer of weapons gave during an event with investors in November. For 2022, the company expects the result to show revenue of 6.5 billion euros.