Rheinmetall surpasses sales records
Rheinmetall, a leading German defense conglomerate, has had a successful first half of the year, with a near 25% increase in sales to €4.7 billion. This growth is part of the company's strategy to invest in various European countries, creating new capacities for military production.
CEO Armin Papperger announced that Rheinmetall is expanding its operations by building new plants, expanding existing ones, and converting sites from civilian to military production. The company is optimistic about future orders from the Bundeswehr, Germany's military, which it expects to come in by the end of the year.
Rheinmetall's order book is currently at its fullest, a testament to the high demand for its defense solutions. The company achieved sales of €5.7 billion in 2021 and expects an improvement in sales for the full year 2025, ranging from €10.9 to €12.7 billion.
Meanwhile, Heidelberger Druck, a well-known printing company, is venturing into the defense sector. The company is building control technology and energy distribution systems for the former military technology division of Jenoptik's Vincorion.
Heidelberger Druck's entry into the defense industry comes as the sector has proven to be a good investment for investors. The shares of Rheinmetall, Renk, and Hensoldt have tripled in value since the beginning of the year, reflecting the sector's strong performance.
Deutz, a leading manufacturer of innovative drive systems primarily for off-highway and industrial applications, is also aiming to establish itself in the defense industry. However, the specifics of Deutz's entry into the defense sector and its expected financial impact are not yet clear.
Recent orders from the Bundeswehr have been delayed due to the grand coalition in Berlin not agreeing on a budget in time. This delay could potentially impact the growth of defense companies in the region.
Despite the delay, the defense industry in Europe continues to show promising growth, with companies like Rheinmetall and Heidelberger Druck leading the way. As these companies expand and invest in new technologies, the defense sector in Europe is expected to continue its upward trajectory.
The conversation about Rheinmetall's expansion into new military production sites brings to light the potential for collaboration between defense and sports industries, considering the company's optimistic forecast about future orders from the Bundeswehr. In the meantime, Heidelberger Druck, a printing company, is venturing into the defense sector, building control technology and energy distribution systems – two areas that could significantly influence sports equipment manufacturing due to their applications in advanced technology gear.
