Rheinmetall (RHM) Investor presentation summary

Strategic positioning and market drivers

• Positioned as an all-domain defense system house with high backward integration and a new five-segment structure from 2026.

• Significant order backlog growth, driven by increased defense spending, especially in Germany and NATO countries.

• Addressing capability gaps in air/missile defense, artillery, drones, cyber, and naval systems.

• Expanding European footprint with new and existing locations across multiple countries.

• Sustainability strategy targets carbon neutrality by 2035 (Scope 1 & 2), enhanced supplier ESG criteria, and social integrity.

Segment performance and growth outlook

• Vehicle Systems: Sales potential of €13-15bn by 2030, driven by large-scale programs like Boxer and Lynx, with Germany as a key customer.

• Weapon and Ammunition: Sales potential of €14-16bn by 2030, ramping up artillery and missile production, aiming for 100% vertical integration.

• Air Defence: Sales potential of €3-4bn by 2030, with strong demand for gun-based and C-UAS solutions, and significant production ramp-up.

• Digital Systems: Sales potential of €8-10bn by 2030, focusing on digitalization, autonomy, and space, with major German contracts.

• Naval Systems: Sales potential of ~€5bn by 2030, integrating new shipbuilding capabilities and targeting full surface vessel demand.

Financial highlights and capital allocation

• FY2025 sales reached €9.9bn, with operating margin at 18.5% and strong cash conversion rate of 66.2%.

• Guidance for 2030: Sales ~€50bn, operating margin >20%, cash conversion rate >50%.

• Over €8bn capex planned in five years, prioritizing capacity expansion and automation.

• Low leverage (net debt/EBITDA below zero in 2025) and equity ratio above 30% support opportunistic M&A.

• Dividend per share increased to €11.5 for FY25, continuing a strong growth trend.