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Shares in German weapons manufacturer Rheinmetall rose 4.8 per cent after the company predicted a doubling of revenues by 2026 and a jump in profitability.
Rheinmetall, whose shares are now up almost 40 per cent this year — making it the best performer on the DAX — said at an investor day presentation that revenues would reach between €13bn and €14bn in 2026, with an operating margin of more than 15 per cent.
Its forecast for this year is that revenues will be between €7.4bn and €7.6bn, with an operating margin of 12 per cent.
Germany’s largest defence contractor has been among the leading beneficiaries of European governments’ boost in defence spending as they rush to ramp up production of artillery shells and other armaments.
The German government has also been pushing to increase and modernise capabilities and shore up diminishing inventories. Last year it allocated €100bn to a new special military fund, when Chancellor Olaf Scholz unveiled a historic change for the country to play a more active role in Europe’s defence strategy.
Its shares have been leading the European defence sector. Since the start of 2022 its shares have more than tripled compared with the 18 per cent rise in the MSCI aerospace and defence index.
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