KEY FACTS
Boom in military business: Group sales reaches €3.8 billion – an increase of 33% from previous year’s figure
Continued strong increase in orders: Rheinmetall Nomination more than doubles at €15 billion
Rheinmetall Backlog reaches new high at €48.6 billion
Group operating result increases 91% to €404 million
Operating margin increases to 10.6%
Operating free cash flow improves by €306 million to €-19 million
Annual guidance for 2024 confirmed
Accelerating sales growth and substantially increased revenues characterize the business performance of Düsseldorf-based Rheinmetall AG in the first half of 2024. Business with the armed forces of Germany and partner nations in the EU and NATO along with assistance to Ukraine continue to significantly improve business performance. Sales in the civilian business also improved slightly from the previous year. With demand consistently high, the market situation in the defence industry continues to grow. The Group also saw noticeable improvement in operating free cash flow.

Group management is confirming its current guidance for the Group´s sales growth and operating result margin based on the current market situation, a continuously excellent order situation and the business performance expected in the second half of the financial year.

Armin Papperger, CEO of Rheinmetall AG, said of the company’s performance, “The supercycle is clearly accelerating. In the second quarter of 2024 alone, our sales increased around 50 percent and our result more than doubled. Positive margin effects are significantly increasing our profitability. With positive development in all areas, we are well on our way to reaching our annual targets.”

“We have never seen such growth. We also expect annual sales growth of around two billion euros in the coming years. This very positive development is only possible because we invested early and have been following a strategic plan since 2014 – when Crimea was invaded. We massively expanded capacities, made acquisitions and are now also additionally building new plants in countries like Lithuania, Hungary, Romania and Ukraine. Forward-looking partnerships in key markets are also bringing us closer to our goal of becoming a global defence industry champion,” Papperger added.


Rheinmetall Group: Strong sales growth of 33% – Rheinmetall Nomination more than doubles
Group sales in the first half year of 2024 climbed noticeably from the previous year by €955 million or 33% to €3,815 million (previous year: €2,861 million). Adjusted for currency effects, sales were around 34% higher than in the previous year, with 76% of sales coming from outside Germany.

Operating result as of June 30, 2024 amounted to €404 million, an increase of €192 million, or 91% from the previous year’s €212 million. In addition to sales growth, the improvement in operating result is particularly due to the profit contribution of Rheinmetall Expal Munitions in Spain, which was acquired in the previous year. The Group's operating margin improved in th first half year of 2024 to 10.6% (previous year: 7.4 %).

The Group's accelerated growth is particularly evident in a quarterly comparison: Compared to the previous year, the second quarter of 2024 saw a sudden leap in sales of around 49% to €2.234 million (previous year: €1,498 million) and in operating result of 110% to €270 million (previous year: €128 million).

Earnings per share from ongoing operations improved in the first half of 2024 compared to the previous year’s period, rising from €2.53 to €4.21.

Operating free cash flow substantially improved in the first half of 2024, increasing by €306 million to €-19 million from the €-325 million in the same quarter of the previous year. Despite further increases in inventories, this improvement was made possible by higher payments from customers.

Compared to the first half of the previous year, the value of Rheinmetall Nomination more than doubled in H1 2024, rising to €15,376 million (previous year: €7,192 million ). This was driven in essence by orders from Germany – mostly from the special fund for the Bundeswehr – and by orders in aid of Ukraine. Rheinmetall Nomination comprises traditional incoming orders as well as the volume from future call-offs under new framework agreements entered into with military customers and new contracts with civilian clients (nominations).

As a result, the Rheinmetall Backlog grew significantly compared to the previous year, rising 62% from €30.0 billion to €48.6 billion (June 30, 2024). In addition to orders on hand, Rheinmetall Backlog includes the call-offs expected from framework agreements in place with military customers and potential orders from contracts with civilian clients.


Vehicle Systems: Rheinmetall Backlog grows 31% from previous year
Sales in Vehicle Systems, which mainly operates in military wheeled and tracked vehicles, in the first half of 2024 reached €1,300 million, an increase of €288 million or 28% from the previous year. The increase in sales is particularly attributable to projects for the supply of tactical vehicles as well as increased deliveries of logistic vehicles.

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