German defence group Rheinmetall reported continued strong growth during the first quarter of 2026, with both revenue and profitability rising as European defence spending continues to accelerate.
The company remains one of the main beneficiaries of the security situation in Europe and rapidly increasing military budgets across NATO and EU member states. At the same time, Rheinmetall’s order backlog has climbed to new record levels.
Revenue during the first three months of the year increased by eight per cent to €1.94 billion, compared with €1.8 billion during the same period last year. Operating profit rose even faster, climbing 17 per cent to €224 million. The operating margin improved from 10.6 per cent to 11.6 per cent.
Order backlog reaches €73 billion
Rheinmetall’s order backlog now stands at approximately €73 billion, up from €56 billion a year earlier. For the first time, the newly established Naval Systems division is included in the figures, adding projects worth around €5.5 billion.
The company describes current demand as remaining very strong, particularly in land systems, ammunition, air defence and military digitalisation.
– We were able to improve further compared with the already very strong quarter a year earlier, said Rheinmetall CEO Armin Papperger.
He added that the company expects even stronger growth during the second quarter, supported by anticipated large-scale naval and vehicle orders.
Expansion into naval systems
During the first quarter, Rheinmetall completed the acquisition of parts of Lürssen’s naval operations, allowing the company to establish a broader presence within warships and maritime defence systems.
According to Rheinmetall, the business now covers everything from unmanned naval vehicles to corvettes and frigates. The company describes the expansion as an important step toward becoming a full-spectrum supplier across all military domains.
Naval Systems contributed only one month of operational activity during the quarter because the integration was finalised at the end of February. Even so, the division generated revenue of €77 million with an operating margin above ten per cent.
Air defence and ammunition drive growth
The Air Defence division recorded particularly strong growth during the quarter. Revenue increased by 43 per cent, mainly due to rising deliveries of Skynex and Skyranger air defence systems to European customers. The operating margin improved to 15.6 per cent.
The Weapon and Ammunition division also maintained high activity levels following the rapid expansion seen in recent years. Sales were supported by ammunition deliveries to Ukraine and a large ammunition package for Hungary. Order intake also strengthened through new contracts from countries including Poland, Lithuania and the Netherlands.
Aiming to become a global defence giant
Rheinmetall continues to invest heavily in expanding production capacity for propellants, ammunition and drone systems. The company also highlighted a recently secured strategic contract involving loitering munition systems, often described as long-endurance attack drones.
– We are now a relevant player on land, at sea, in the air, in cyberspace and in space – and therefore on our way to becoming a global defence champion, said Armin Papperger.
Rheinmetall also confirmed its full-year outlook for 2026 and expects annual revenue to reach between €14 billion and €14.5 billion, compared with around €9.9 billion the previous year.
Source: Rheinmetall
Fact check:
Rheinmetall is one of Europe’s largest defence and weapons manufacturers, with operations spanning combat vehicles, ammunition, air defence, digital military systems and naval platforms. The company has expanded rapidly since Russia invaded Ukraine in 2022, as European governments increased defence budgets and rebuilt military stockpiles.
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![Schematic of a polymetallic nodule mining operation. From top to bottom, the three zoom-in panels illustrate the surface operation vessel, the midwater sediment plume, and the nodule collector operating on the seabed. The midwater plume comprises two stages: (i) the dynamic plume, in which the sediment-laden discharge water rapidly descends and dilutes to a neutral buoyancy depth, and (ii) the subsequent ambient plume that is advected by the ocean current and subject to background turbulence and settling.[1] Image: Wikipedia Commons, Kredit: Carlos Muñoz-Royo.](https://www.miningmetalnews.com/sites/default/files/styles/related_news_image/public/media-cover-images/schematic-of-a-polymetallic-nodule-mining-operation-from-top-to-bottom-the-three_2_0.jpg?h=3df05eba&itok=My_MmN9i&u=1776673036)
