Rheinmetall targets €50 billion in annual sales by 2030

Rheinmetall AG is setting ambitious growth targets, aiming for annual sales of around €50 billion by 2030, CEO Armin Papperger revealed during a capital markets day call with analysts on November 18.

The German defence contractor, known for manufacturing tanks and military vehicles, also plans to boost its operating margin to over 20% per cent and achieve a cash conversion rate exceeding 50 per cent by the end of the decade, Bloomberg writes. 

To meet these goals, Rheinmetall will divest its civilian-facing business, which includes automotive parts, by the first half of 2026. The company also intends to finalise significant investments in ammunition production and digitisation in 2027. These moves are part of a broader strategy to strengthen its position as a key player in the defence industry.

Papperger identified Rheinmetall’s vehicle systems division—particularly its Boxer armoured vehicles—as a major growth driver over the next five years. The company expects substantial orders from Germany beginning in 2026, with plans to ramp up production to approximately 1,000 Boxer vehicles per year. Additionally, Rheinmetall is anticipating orders for its Lynx armoured fighting vehicles from Italy and Ukraine. Last week, the company signed a contract with Romania for 298 Lynx vehicles, further solidifying its growing international footprint.

“It would be impossible to do all this international business without the SAFE money,” Papperger remarked, referring to the European Union's defence procurement funding mechanism, known as the SAFE (Security and Defence Equipment) program.

Rheinmetall’s outlook for 2025 remains positive, with the company continuing to invest heavily in its defence capabilities. The firm recently opened Europe’s largest ammunition plant in Germany and is set to begin production of rocket motors at the facility in the third quarter of next year.

By Sabina Mammadli