- Strong First Quarter Performance: Rheinmetall’s sales and profits exceeded market expectations, with an operating profit of €199 million, marking a 49% year-over-year increase.
- Impressive Sales Growth: Sales reached €2.31 billion, a 46% rise compared to the previous year, outperforming the estimated sales of €2.05 billion.
- Vehicle Systems Sales Surge: The Vehicle Systems division saw sales of €952 million, significantly beating the €693.2 million estimate.
- Weapon and Ammunition Outperform: Weapon and Ammunition sales stood at €599 million, surpassing the estimated €491.3 million.
- Electronic Solutions Growth: Electronic Solutions reported sales of €427 million, also exceeding estimates (€392.7 million) and registering a 49% year-over-year increase.
- Operating Margin and Profitability: The operating margin for the quarter was 8.7%.
- Earnings per Share: EPS rose to €1.92, compared to €1.13 the previous year, beating the estimate of €1.49.
- Future Outlook: Rheinmetall is maintaining its forecast for an operating margin of about 15.5% and anticipates sales growth of 25% to 30% for the year, thanks to expected market developments.
- Potential for Further Growth: The outlook does not yet include potential market improvements in Europe, Germany, and Ukraine due to recent geopolitical developments.
- Analyst Ratings: The stock has been recommended by analysts with 18 buy ratings, 3 holds, and 1 sell.
Rheinmetall AG on Smartkarma
Analysts on Smartkarma, like Dimitris Ioannidis, are closely following Rheinmetall AG (RHM GR), a company making significant strides in the Euro STOXX50 rankings. Currently positioned 26th, Rheinmetall AG is just ~4% away from a fast-entry opportunity at the June 2025 review. With a remarkable surge of ~65% in the past month, the company has crossed the sector coverage threshold, leading to its selection list qualification.
According to Dimitris Ioannidis‘s research report, the chances of Rheinmetall AG‘s fast-entry to the Euro STOXX50 in June are high if the price climbs by the required 4% to secure the coveted rank of 25. In case this fast-entry fails, the company is strongly positioned for inclusion in the September 2025 annual review. Kering (KER FP) emerges as a primary deletion candidate in the upcoming reviews, further highlighting Rheinmetall AG‘s promising outlook in the market.
A look at Rheinmetall AG Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 5 | |
| Resilience | 4 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Looking ahead, Rheinmetall AG appears to have a positive long-term outlook based on the Smartkarma Smart Scores. With a strong Growth score of 5 and Momentum score of 5, the company is positioned for future expansion and market performance. Additionally, Rheinmetall AG demonstrates a solid Resilience score of 4, indicating its ability to weather potential challenges and maintain stability within its industry.
While the Value and Dividend scores for Rheinmetall AG are at 2, suggesting areas for potential improvement, the overall outlook remains promising. As an automotive, electronics, defense, and engineering group, Rheinmetall AG is actively involved in producing a variety of essential components for the automotive industry. With a focus on innovation and aftermarket services, the company is poised to capitalize on future opportunities and continue its growth trajectory.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
