Rheinmetall Stock: Record Orders Fuel Explosive Growth

Rheinmetall has shattered analyst expectations with its preliminary Q1 2025 results, reporting revenues of €2.3 billion-a 46% increase year-over-year. The defense giant's military segment surged by 73%, driving operating profits to €199 million, significantly exceeding market forecasts of €166 million. Management attributed this exceptional performance to acceleration effects in the defense business, with orders originally expected in Q2 materializing earlier than anticipated. The company's order intake exploded by an astonishing 181% to €11 billion, pushing its backlog to an all-time high of €62.6 billion and ensuring production security for years ahead.

Market Reaction Mixed Despite Strong Outlook

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Sollten Anleger sofort verkaufen? Oder lohnt sich doch der Einstieg bei Rheinmetall?

Despite confirming its full-year guidance of 25-30% revenue growth and a 15.5% operating margin, Rheinmetall's stock has recently underperformed the broader DAX index. This weakness comes amid record global military spending, which reached $2.72 trillion in 2024-a 9.4% inflation-adjusted increase. The company is also diversifying beyond its core defense business, recently securing a mid-double-digit million euro deal to supply one hundred gas containers to a European green hydrogen producer starting in 2026. Some analysts attribute the stock's recent pullback to profit-taking following its previous rally and uncertainty surrounding potential peace talks in Ukraine.