Rheinmetall's Weapons and Ammunition Segment Soars on NATO, Ukraine Demand
Rheinmetall, a leading German defence technology group, has reported a significant surge in profits for its Weapons and Ammunition segment in 2024. The segment's revenue grew by 58.5% to €2.78 billion, with an impressive EBIT of €790 million, the highest among all segments.
The robust performance of the Weapons and Ammunition segment can be attributed to a 50% increase in revenue to €9.8 billion. This growth was primarily driven by a sharp rise in demand for artillery and tank ammunition from NATO countries and Ukraine. Large orders from Germany and the US, coupled with the commencement of new munitions production facilities such as Germany's largest ammunition factory and a joint venture in Ukraine, have further bolstered the segment's performance.
Rheinmetall operates through four segments: Military Vehicles, Weapons and Ammunition, Electronic Solutions, and Power Systems. The combined EBIT for the other three segments stood at €729 million. The main revenue drivers for the group are the three military segments, while the civilian segment witnessed a decrease.
The Weapons and Ammunition segment's EBIT margin reached 28.4%, the highest among all segments. Revenue growth was also notable in the Military Vehicles (45.2%), Electronic Solutions (52.5%), and Power Systems segments, although the latter saw a decrease of 2.2%. Rheinmetall's strong performance in the military segments underscores the group's resilience and adaptability in the face of evolving global defence needs.
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