Rheinmetall's Chief Executive anticipates a doubling of earnings by the year 2027.
Armin Papperger, CEO of defense conglomerate Ryneinmetall, views the ongoing Ukraine conflict and increasing geopolitical tensions as a continued boon for the company's revenue and profits. With a vision to push the company's revenue to a staggering 20 billion euros by 2027, Papperger is confident that this target could easily double by that same year. However, he acknowledges that progress on the German-French defense project "Main Ground Combat System" has been sluggish, admitting, "to be frank, we've made frustratingly little progress in the last five years."
Nevertheless, Papperger remains optimistic, especially with the potential for a 500 billion euro defense fund being discussed across Europe. He sees this fund as not only beneficial for Rheinmetall but also as a means to foster unity among European states, promising, "I anticipate this will unlock further significant opportunities for Rheinmetall."
In the competitive US market, Papperger expresses confidence in the superiority of Rheinmetall's technology. He dismisses concerns over the former Trump administration's trade plans, stating, "You gotta invest in the US. You can't serve the US from Europe." He hints at potential future acquisitions, saying, "We've got our eyes on more, but we'll only talk about it when we're ready."
The joint venture with Italian defense company Leonardo is a key part of Rheinmetall's growth strategy. From Papperger's perspective, this partnership has the potential to become a significant nucleus for consolidation in land systems, particularly tank production. Over the next decade, he expects this joint venture to rake in 50 billion euros in orders, asserting, "That's no small number."
Looking ahead, Papperger foresees the potential to significantly ramp up production, particularly in ammunition, at Rheinmetall's own plants. He attributes this to the conventional war in Ukraine and growing security concerns in Russia-bordering countries like Lithuania. "We've gone from producing 70,000 rounds to 700,000 and soon to 1.4 million," he reveals.
[1] Rheinmetall CEO sees growth potential in European defense spending
[2] Rheinmetall and Leonardo to formalize joint venture in land systems
[3] European defense spending and the modernization of military forces driving demand
[4] NATO and EU defense spending efforts bolstering European defense industry
[5] European defense industry reorienting towards greater self-sufficiency
- Armin Papperger, the CEO of defense conglomerate Rheinmetall, has expressed optimism about the growth potential of the company within the European defense industry, anticipating that a proposed 500 billion euro defense fund could unlock significant opportunities for Rheinmetall.
- In 2027, Papperger aims to double Rheinmetall's revenue, although he acknowledges that progress on the German-French defense project "Main Ground Combat System" has been slow.
- The joint venture between Rheinmetall and Italian defense company Leonardo is a crucial part of Rheinmetall's growth strategy, with Papperger viewing it as a potential significant nucleus for consolidation in land systems, particularly tank production, with the potential to rake in 50 billion euros in orders over the next decade.
