The Düsseldorf-based defense giant Rheinmetall has officially completed a transformative acquisition, marking a historic expansion of its capabilities. The company has finalized the takeover of the naval vessel division NVL from the Lürssen Group, a move that instantly adds four German shipyards to its portfolio. This strategic integration positions Rheinmetall as a comprehensive systems supplier across all military domains—land, air, and now sea.
A Restructured Giant Sets Ambitious Goals
This naval expansion is a cornerstone of a broader corporate restructuring that took effect at the start of the year, dividing the group into five distinct divisions. The newly formed “Naval Systems” unit, formally integrated on March 1, consolidates surface shipbuilding expertise. It brings with it approximately 2,000 specialized employees and contributes annual revenue of around €1.3 billion. A central focus will be on unmanned systems and the construction of the F126 frigate for the German Bundeswehr.
Management has set a bold target for this new maritime arm: annual growth of 30% leading to a projected revenue contribution of €5 billion by 2030. Concurrently, the company is moving to finalize the sale of its less-favored automotive supply division by the third quarter at the latest.
Robust Operational Performance Fuels Investor Rewards
Recent financial results for 2025 underscore the group’s underlying strength. While revenue growth of 29% to €9.94 billion slightly missed internal targets, the company attributed the minor delay partly to the phased ramp-up of its new ammunition plant in Unterlüß. Operational performance, however, was notably robust, with operating profit surging by one-third to reach €1.84 billion.
A significantly strengthened balance sheet—which shifted from net debt to a net cash position of €369 million—has enabled a generous shareholder return. The board has proposed a dividend of €11.50 per share, substantially exceeding analyst consensus estimates of €10.54. On the equity market, Rheinmetall shares, currently trading near €1,609, are gradually approaching the key 200-day moving average, which resides around €1,720, following a period of stabilization.
A Record Order Backlog Supports Aggressive Outlook
The foundation for future growth appears solid, built upon a massively expanded order backlog of nearly €64 billion. Driven by European rearmament programs, this backlog is anticipated to double by the end of 2026.
For the current 2026 financial year, management has raised the bar. The company forecasts revenue will climb by 40-45%, potentially reaching up to €14.5 billion, supported by an operating margin target of approximately 19%. The upcoming release of first-quarter figures on May 7 represents the next critical milestone. A strong operational start to the year is viewed as essential to dispel any lingering doubts about the ambitious revenue forecast and to provide concrete validation for the growth trajectory of the newly structured conglomerate.
