Rheinmetall (RHM) Q4 2024 earnings summary

Executive summary

• Achieved record sales of €9,751 million in FY 2024, up 36% year-over-year, with operating result up 61% to €1,478 million and margin at 15.2%.

• Defence segment drove growth, with backlog surging 44% to €55 billion and major contract wins in Germany and Europe.

• Dividend per share increased to €8.10, reflecting strong earnings and cash flow.

• Strategic expansion in the US and Ukraine, including successful Loc Performance acquisition and new joint ventures.

• Workforce expanded to 32,000, with plans to reach 40,000 in two years.

Financial highlights

• Operating free cash flow exceeded €1 billion for the first time, driven by high customer prepayments and inventory build-up.

• Net income attributable to shareholders rose to €717 million from €535 million year-over-year.

• Earnings per share increased to €16.51 (basic) and €18.52 (diluted) from continuing operations.

• Adjusted EBIT reached €1,478 million, up 38% year-over-year, with special items of ~€50 million.

• Equity ratio stable at 31%, net debt/EBITDA improved to 0.71x, and liquidity at €1.2 billion.

Outlook and guidance

• FY 2025 sales expected at €9.8 billion, with defence growth of 35–40% and flat civil business.

• Operating margin guided at ~15.5%, with cash conversion rate above 40%.

• Guidance upgrade anticipated in the short term due to strong order momentum.

• Ongoing investments in capacity expansion, especially in ammunition and vehicle production, to meet anticipated demand.

• Outlook does not yet include potential upside from recent geopolitical developments.