ALBAWABA - The European countries have increased their military expenditure as a result of the Russia-Ukraine War, and German defense manufacturer Rheinmetall has obtained its biggest order to date, for €8.5 billion.
The German military has placed an order for artillery ammunition worth €8.5 billion with Rheinmetall. This significant extension of an already-existing contract aims to help Ukraine's military activities while also replenishing supplies for the German armed forces, the Bundeswehr, and its allies.
The precise number of 155mm artillery rounds that have been bought has not been made public, although delivery is anticipated to start early in 2019.
According to Rheinmetall's investor presentation, the business expects strong growth in the next years, driven by the continuing European war and rising military spending in Western nations. Through 2026, the corporation anticipates an average annual revenue growth rate of 20%.
Rheinmetall wants to reach sales revenues of €13–€14 billion and an operating profit margin of more than 15% by 2026. The corporation has projected sales for the current year that fall between €7.4 billion and €7.6 billion.
Rheinmetall produces a range of military hardware, including as vehicles, anti-aircraft systems, ammunition, and tanks. It also provides Israel with weapons. The corporation is building additional manufacturing facilities in order to accommodate the growing demand for weapons and ammunition from Ukraine.
