Rheinmetall: The Defense Supercycle Is Far Bigger Than Investors Think

Rheinmetall AG remains a strong buy, with robust sales growth, expanding backlog, and heightened global defense demand anchoring the investment case. 2025 revenues surged 29% to €9.9B, operating results rose 33%, and backlog hit €63.8B, supporting multi-year revenue visibility and further upside. 2026 guidance targets 40%-45% sales growth, but margin expansion is modest due to high CapEx and facility ramp-ups; capital intensity is set to peak.