Rheinmetall to Divest from Auto Supply Business - Rheinmetall Sells Automotive Unit, Boosting 2025 Profit Forecasts
Rheinmetall has announced plans to sell off its automotive supply and energy components division. The move comes as the company adjusts its financial forecasts for 2025. Two major investment firms, Blackstone and KKR, are now in talks to acquire the business.
The division up for sale covers automotive supply operations and parts for the energy sector. Rheinmetall will classify these units, including Power Systems and its subsidiaries, as discontinued operations in its accounts. Negotiations with Blackstone and KKR are ongoing, with a final deal expected by early 2026.
Originally, the company had predicted a 25 to 30 percent revenue rise and a 15.5 percent operating margin for the combined business. Now, with the sale in progress, Rheinmetall has updated its outlook. It now expects revenue growth of 30 to 35 percent for its continuing operations in 2025. The operating margin is also set to climb, reaching between 18.5 and 19.0 percent.
The divestment marks a shift in Rheinmetall’s strategy, focusing on its core operations. The revised financial targets reflect higher revenue and profit expectations for the remaining business. A final agreement with either Blackstone or KKR is anticipated within the first three months of 2026.
