DÜSSELDORF / LONDON (IT BOLTWISE) – The German defense company Rheinmetall is recording strong sales growth and is planning a strategic realignment. In the third quarter, sales rose to 2.78 billion euros, while operating profit exceeded analysts’ expectations. The group reiterates its optimistic outlook for the full year and plans to sell its troubled Power Systems division in order to concentrate more on its core business of defense technology.
Today’s daily deals at Amazon! ˗ˋˏ$ˎˊ˗
The German defense company Rheinmetall recorded impressive sales growth in the third quarter of 2023. Sales rose from 2.453 billion euros in the same period last year to 2.78 billion euros. This development exceeded the expectations of analysts, who had expected a smaller increase. The operating result climbed to 360 million euros, which corresponds to an operating margin of 12.9 percent. This significantly exceeded the 12.6 percent expected by analysts.
Rheinmetall also reiterated its outlook for the full year. The group expects sales growth of 25 to 30 percent and an operating profit margin of around 15.5 percent. This positive forecast is supported by the strong performance in the defense business, which has significantly higher margins compared to the civilian Power Systems division. In the third quarter, sales at Power Systems fell slightly to 473 million euros, while the margin rose to 3.9 percent.
An essential part of Rheinmetall’s strategic realignment is the planned sale of the crisis-hit Power Systems division. The group plans to obtain final offers by the end of the year and reclassify the division as a discontinued operation by the first quarter of 2026. This decision underlines Rheinmetall’s focus on the core business of defense technology, which generates significantly higher returns within the group.
Rheinmetall shares barely reacted to the quarterly figures, suggesting that the market is already focused on the upcoming Capital Markets Day on November 18th. Analysts such as JPMorgan’s David Perry see the recent share price decline as a good entry opportunity. The confirmation of the positive outlook also allayed some investors’ fears of a possible forecast cut.
Order an Amazon credit card without an annual fee with a credit limit of 2,000 euros!
Bestseller No. 1 ᵃ⤻ᶻ “KI Gadgets”
Bestseller No. 2 ᵃ⤻ᶻ “KI Gadgets”
Bestseller No. 3 ᵃ⤻ᶻ “KI Gadgets”
Bestseller No. 4 ᵃ⤻ᶻ “KI Gadgets”
Bestseller No. 5 ᵃ⤻ᶻ “KI Gadgets”
Please send any additions and information to the editorial team by email to de-info[at]it-boltwise.de. Since we cannot rule out AI hallucinations, which rarely occur with AI-generated news and content, we ask you to contact us via email and inform us in the event of false statements or misinformation. Please don’t forget to include the article headline in the email: “Rheinmetall: sales growth and strategic realignment”.